Your tax audit

A tax audit is a review of your tax return to verify that your income and deductions are accurate. Audits can generate from multiple sources, including the IRS.

We’ll contact you in writing if your return is under audit. Your letter may include the following:

  • What tax year(s) and issue(s) we are reviewing
  • Additional information we need you to provide
  • How to contact us

Audit timeframes can vary based on complexity.

Visit Frequently asked Questions about your tax audit (FTB 1015B) for more information.

During an audit

We’ll work with you to:

  • Schedule appointments
  • Review deadlines
  • Go over documents you have provided to support your position
  • Give you a chance to respond to our position prior to closing the audit

We may send you one or more Information Document Requests (IDRs) to gather facts, understand, and verify the items you reported on your tax return.

You have the right to have a representative at any time during an audit, such as an accountant, or tax attorney. Review your taxpayer rights and Audit/Protest/Appeals (FTB 985) for more information.

After the audit

We will notify you of the results of the audit in writing.

You may receive one or more of the following:

  • No Change letter that states we accepted your tax return as filed and you do not owe additional tax
  • Notice of Proposed Assessment that proposes the additional tax and/or penalties based on the audit results
  • Notice of Proposed Overassessment or a Computation of Proposed Overpayment
  • Notice of Overassessment, Credit, or Refund
  • Notice of Proposed Adjusted Carryover Amount that proposes reduction of a carryover item which did not result in any additional tax for the tax year examined
  • A letter that indicates we have fully or partially denied your claim for refund

If you owe additional tax and/or penalties, you will also owe interest. Interest accrues from the original due date of the tax return until the date we receive payment in full.

If applicable, you’ll have an opportunity to protest or appeal if you disagree with a tax decision.