I have a question regarding how to handle tax due notices from the California FTB due to an adjustment they made which I disagree with.
The FTB sent me a Notice of Tax Return Change - Revised Balance (FTB 5818B), adjusting my tax return, which resulted in taxes due. I mailed a letter to the FTB explaining why my original return was correct, and that I am due a refund. I have not received a reply.
Then the FTB sent a State Income Tax Balance Due Notice (FTB 4963) for the balance due from the adjustment. Later, the FTB sent me another Income Tax Due Notice (FTB 4963 BV2) for the same amount plus interest.
Given that I have already sent a letter disputing the adjustment, can I ignore the tax due notices?
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How to handle CA FTB tax due notices from adjustment I disagree with
Re: How to handle CA FTB tax due notices from adjustment I disagree with
They have live chat. Talk to them.
Re: How to handle CA FTB tax due notices from adjustment I disagree with
I would call them. I had a client in a similar situation that also drafted a letter to FTB. It took FTB months to process the letter but they did not stop their collection process in the meantime. They garnished a bank account which impacted the client’s credit score. Ask FTB if they have received your letter and if yes, ask them to put collections on hold. They will most likely pause collection for 90 days so you’ll need to keep requesting a longer hold time until they process or respond to your letter.
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Re: How to handle CA FTB tax due notices from adjustment I disagree with
FTB collections can be paused by phone for a fixed period while a dispute or appeal is pending. Once that period expires, the collections machine cranks back up and the forced collection action just happens. It's entirely automated and has a direct link to all your CA-based accounts.
Keep a record of all correspondence. For each call you make, write down the date, time, agent's name, and details of the call. While most disputes are simple and easy to resolve within a short time like 4-6 weeks, larger discrepancies can take years to clear.
Keep a record of all correspondence. For each call you make, write down the date, time, agent's name, and details of the call. While most disputes are simple and easy to resolve within a short time like 4-6 weeks, larger discrepancies can take years to clear.
I am not a financial professional or guru. I'm a schmuck who got lucky 10 times. Such is the life of the trader.