protests pilot project
Will study possibility of shorter processing timeline
A taxpayer who receives a Notice of Proposed Deficiency Assessment may request an administrative review by the department by filing a "protest" (Revenue and Taxation Code Section 19041). The protest is assigned to a hearing officer in either the Audit Division or the Legal Department. Protests assigned to the Legal Department are designated as "docketed protests."
FTB recently issued Notice 2006-05, "Pilot project for one-year timeline in processing docketed administrative protests." Its purpose is to explore the possibility of achieving greater efficiency in processing these protests. The pilot project will allow certain taxpayers to request a one-year timeline for resolving their docketed protests.
Meeting the one-year processing period will be a goal for both the taxpayer and the hearing officer. The one-year period will begin on the date the protest is filed, and will conclude when a Notice of Action on the protest is issued (Revenue and Taxation Code Section 19045).
How to participate in the pilot program
Include a request for consideration to participate in the one-year processing pilot when you file your client's initial protest. Protests filed before the date that Notice 2006-05 was published (October 27, 2006) are not eligible for this pilot.
Both FTB staff, and participating taxpayers will agree to follow guidelines that support meeting the goal of a one-year processing timeline. FTB maintains sole discretion in determining whether a taxpayer's protest is included in the pilot program. The decision rests on several factors, including the number and complexity of issues raised in the protest, and resources available to the department in meeting the goal of completing the case within one year. We may also consider other factors in the decision.
More information on docketed protests
For details on the pilot, and your clients' possible participation in the pilot program, see FTB Notice 2006-5. We have also released FTB Notice 2006-6, which provides more in-depth details on our internal procedures for processing docketed protests. Visit our FTB Notices Webpage to see all current Notices, as well as our archive of notices issued from 1989 to the present.