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Tax News Inside FTB

The Personal Income Tax Audit is Done. Now What?

Upon completion of the audit, we mail a Notice of Proposed Assessment (NPA) to the taxpayers when there is a change in the amount of tax due.

When taxpayers agree with the auditor’s finding, they should pay the added tax, penalties, and interest shown on the NPA. They can pay on line at ftb.ca.gov. They can use our WebPay service, enter into an installment agreement, or pay by credit card.

If taxpayers do not agree with the audit findings, they can file by the “protest by” date shown on the front of the NPA. Taxpayers generally have 60 days to protest. The protest must be in writing, clearly state the issues, and the reasons for protest.

NEW - Fax protest letter to:  916.364.2754

or

Mail protest letter to:

PROTEST CONTROL DESK MS F340
FRANCHISE TAX BOARD
PO BOX 1286
RANCHO CORDOVA CA 95741-1286

We provide details of the information taxpayers should include in the protest letter on form FTB 7275, Personal Income Tax Notice of Proposed Assessment Information, included with the NPA, and also available at ftb.ca.gov.

The protest process provides taxpayers the forum to present facts, information, documentation, and authority to support their position of why the NPA is wrong. It is intended to be an informal process. The hearing officer, or attorney, assigned to the protest case is responsible for making a determination of the correct amount of tax based upon the facts and application of the law.

We will grant an informal oral hearing if the taxpayers request in the protest letter. Taxpayers or their authorized representatives may attend the one-hour hearing which is generally conducted at one of our public service offices. Go to ftb.ca.gov for locations and hours.

Once we determine the correct amount of tax, we send a Notice of Action (NOA).

If the taxpayers agree with the findings detailed on the NOA, they should pay the balance as shown. Otherwise, they may file an appeal with the State Board of Equalization by the date shown on the NOA.

Fax appeal to: 916.324.2597

Or

Mail or hand-deliver appeal to:

BOARD PROCEEDINGS DIVISION MIC: 81
BOARD OF EQUALIZATION
450 N STREET
PO BOX 942879
SACRAMENTO CA 94279-0081

Taxpayers generally have 30 days to file an appeal. Form FTB 7277, Personal Income Tax Notice of Action Information,is included with the NOA and also available at ftb.ca.gov. It provides complete instructions for filing an appeal to the State Board of Equalization

For business entities, the protest and appeal filing deadlines and procedures are the same. Go to ftb.ca.gov for more information.

Back to September 2010 Tax News