Calif Practice and Proceedure

[BulldogTom]

For you CA practice experts. I normally don't have issues with CA until after a Federal audit or amend, so this is kinda new to me. Sorry if it is very basic, but I just have not had to practice before the FTB very much, and only in limited circumstances. Please help if you can.

Situation - Taxpayer says his mailbox was vandalized and he did not get a lot of mail over a 2 week period of time. Apparently, that is the time period over which the FTB sent a HOH questionaire to him. (this happens alot to male clients who claim HOH - not unusual at all). Had he gotten it and sent it in, there would be no problem. The next letter he got was an assessment of additional tax changing CA filing status to Single from HOH. He called the FTB and they said fill out the HOH questionaire, send it in with a letter, and we will take care of it. FTB sent him a letter with the questionaire and a date to reply. He did so, proof of mailing, return receipt, all that good stuff. The next letter from the FTB was a Notice of State income Tax Due. The letter starts out "The proposed assessment of tax year 2006 is now final and must be paid".

I now have a POA for CA from the client. I have been looking at the appeal proceedures from the FTB website. It seems to indicate that appeals go to the BOE after all options within the FTB have been exhausted. Then a protest must be filed with the BOE within 30 days.

Do any of you have a good CA practice and proceedure book or reference that I can get at a bookstore or download?

Do any of you have some good advice for me on how to represent this client?

I know all the rules for HOH and what I need the client to get together to prove the filing status, and we are working on that. I am looking for the best way to present to the FTB to make it go as smooth as possible. If this were an IRS inquiry, I would not be asking this.

Thanks in advance for your help and input. Sorry this is so long.

Tom

Lodi, CA

[JRS]

Wish I could help, but never ran into this. The only book I have that has the appeals process in it, is Spidell's Analysis & Explanation of California Taxes, which you probably already have.

[jainen]

>>Spidell's Analysis & Explanation of California Taxes<<

This is the basic reference, available at www.caltax.com. As far as I know, FTB isn't too concerned about this issue if you complete the questionnaire correctly. However, the wording on the questionnaire is all screwed up so your client probably answered it wrong. It won't be hard to fix, but apparently you need to file a formal appeal to get back on track.

[Tax Prep by Deb]

Because I am just a lowly tax preparer and have nothing else attatched to my name, I do not practice before FTB but I have had a client in just this same predicament.

All I had to do was respond to the questioner and I sent a brief letter of explanation stateing (in my case client missplaced the notice) and in this letter asked that they reconsider based on the submission of the questioneer. Client got a letter of closer returning his account back to the way it had previously been prepared.

Go ahead and have you client get his info together, but I would try just submitting the questioneer with a letter and see what happens.

I have also found calling FTB is extremely easy and they are very helpful. They help me with my clients when IRS won't.

Hope this helps some, and I hope it turns out well for your client as it did with mine!

Deb!

P.S. I went back and re-read your post, and see that it was and already has done what they instructed him to do. Call FTB because my gut feeling is they are running way behind in their processing and the final bill was sent out via computer, whereas the paperwork he sent it takes time to process.

I have had a real problem when I have ammended a return, had the client send in the additional payment, only to have the payment returned several months later, called to find out why was told because there was nothing on their account showing it was due, told them about the ammended return, acknowledged receipt of the return, but not posted to the account until after the check was return, now client receives new bill with added penalty and interest.

A real pain, however FTB is good to work with you to straighten things out!

Deb!

[joanmcq]

Last time I called the FTB wanting to know about a notice I had responded to , the guy that answered the phone asked if it had 'been 9 months yet' because that's how far behind they were. Best, as in the cases where the IRS sends out money when they shouldn't is to not cash the check and then send it back if the notice comes. That way no interest and penalties.

[Tax Prep by Deb]

Last time I called the FTB wanting to know about a notice I had responded to , the guy that answered the phone asked if it had 'been 9 months yet' because that's how far behind they were. Best, as in the cases where the IRS sends out money when they shouldn't is to not cash the check and then send it back if the notice comes. That way no interest and penalties.

That is exactly what FTB instructed me to do. Fortunately the client had not cashed the check and it was easily taken care of. But I do agree that it appears that FTB runs way behind and that is most likely the case with this final bill. It has been my experience with both agencies for the most part that even if it says final, it isn't always final! Usually if you give them the info they are asking for they will re-open. Not exactly sure if this is the case with an audit but most of the issues I have dealt with are not audit related but rather a seeking for additional information.

Deb!