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FTB TAX MATTERS

Franchising Tax Board

FTB TAX MATTERS

How Can a Los Angeles FTB Tax Attorney Help Me?

The FTB is similar to the IRS in conducting tax audits and taking enforcement action to collect outstanding tax liabilities. A Los Angeles FTB tax attorney at Disparte Tax Law have a wealth of experience in FTB tax disputes. The FTB conducts a variety of audits including basis audits.

FTB Audits

When the FTB receives your tax return, they use a variety of information to determine whether they should accept your tax return as filed, or start an audit. In order to make this decision, FTB auditors review the following items:

  1. Federal and state tax returns.
  2. Prior audit history.
  3. Income exclusions and deductions.
  4. Public information.
  5. Internal Revenue Service data.

If you have been selected for an FTB audit, you will receive an Initial Contact Letter. This letter:

  1. States that your tax return was selected for audit.
  2. Identifies the issues under examination.
  3. Provides the names and telephone numbers of the auditor and supervisor.
  4. Requests the name and contact information from you or your designated tax representative.

For field audits, the initial contact letter also asks you to provide information to schedule an audit appointment. When appropriate, the auditor may request information or documents to be brought to the initial meeting.

If you have sold real estate of a business, the FTB will conduct an audit to determine that the basis claimed is substantiated. It is important to keep track of capital expenditures to real estate and capital contributions to a business so you can substantiate your basis. In addition, loss carry forwards will also need to be substantiated even if they arise from a tax return that is several years old. In addition, the FTB generally will follow and assess tax liabilities based on IRS audits. You can review additional information on the FTB Manual of Audit Procedures.

FTB Substitute Returns

The FTB is very active in filing substitute returns for taxpayers who have not timely filed a tax return. The FTB will estimated income of a taxpayer from a variety of methods including: average income in a particular field of employment; the amount of mortgage interest paid in a particular year.

FTB Tax Liability Collection Matters

If you have received an FTB notice pertaining to an audit or tax liability collection matter, our FTB tax attorney can guide you through the process and zealously advocate on your behalf to obtain the best possible outcome. We pride ourselves in protecting the interests of our clients, so they can have peace of mind. Contact us today for a free consultation.

Contact a Los Angeles FTB Tax Attorney

We have a wealth of experience and knowledge and can guide you through an FTB tax dispute. Contact us today for a free consultation.