The Master's Tax & Financial Services
(707) 544-5732
FAX 866-649-8853

FTB Mailing Audit

The California Franchise Tax Board (FTB, the "IRS" of California) recently announced that they are mailing 130,000 audit questionnaires beginning in July (2008). It is very important to respond to this audit if you receive one.

We routinely handle such items for clients where we have prepared their tax return. Any of our clients should contact us immediaately if you receive one of these audit letters. We do not anticipate that our clients will receive these.

Taxpayers who fail to respond to the audit will receive a Notice of Proposed Assessment that effectively disallows the use of the Head of Household filing status, and will assess the additional taxes accordingly.

Results of these audits are forwarded to the IRS where, if the Head of Household filing status was disallowed, the IRS may follow suit and assess additional federal taxes as well.

Generally you can expect interest and sometimes penalties to added as well by each tax authority.

"Tax software is no substitute for tax knowledge."
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Janelle Ogg, EA
Richard Ogg, EA