California Tax Challenges Will Be Fast, With Few Options, in 2020


         When it comes to filing a Tax Return in the state of California, there will be a major change in how Taxpayers will interact with the Franchise Tax Board (FTB). In the past, if the FTB wanted to disqualify a Taxpayer from claiming Head of Household status, they would send a “Notice of Proposed Assessment”. This would allow the Taxpayer 60 days to respond. If they object, and the FTB did not change the proposition, there would be an appeals process that would move to the Office of Tax Appeals (OTA). What starts in January 2020 will be very different.

          The process described above normally takes months to initiate and try to resolve. In January, the FTB will send out “Tax Return Change” notices instead. This adjustment will speed up the time when the FTB contacts Taxpayers. However, if they dispute the change, and the FTB upholds its decision, they will be forced to pay the tax and file the claim for a refund on an amended Tax Return. A “Tax Return Change” is a different way of saying math error. This means that issues related to status are treated like math problems, resolved quickly with few alternatives. There are many State Tax changes going into effect in 2020. Take time now to speak with your Qualified Tax Professional to find out how those changes will impact you.

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