1. California Tax Updates
Introduction 1

2. Understanding Your Rights
Franchise tax board
Taxpayers’ Rights Advocate Office
We strive to protect your rights and ensure that your tax problems are handled promptly and fairly.
And mention our Vision: We are the experts in the Needs of Taxpayers and the Tax Practitioner Community.
How do we become experts? Through you and events like this one.

3. Who is the Taxpayers’ Rights Advocate?
Susan Maples, CPA
Background
FTB Experience
Taxpayer Advocate
CPA
The Taxpayers’ Rights Advocate is responsible for ensuring that taxpayers’ rights are protected. As the Advocate, her responsibilities also include the coordination and resolution of taxpayer complaints and problems; and education and outreach efforts to taxpayers and tax practitioners.
23 Years with Franchise Tax Board (FTB)
BS in Business Administration from California State University Sacramento
Earned her CPA while working at FTB
Follow the Advocate on Twitter @FTBAdvocate

4. Why was the Advocate Office created?
Taxpayers' Bill of Rights established
Independent Review
Recommendations to Prevent Future Problems
Problems handled promptly and fairly
Confidence in the integrity and fairness of California’s Tax System
Statutory Position: the Taxpayers' Rights Advocate’s Office was created to:
Provide an independent review of your unresolved tax problems.
Recommend changes that will prevent future problems: EXAMPLE:
We strive to ensure that your problems are handled promptly and fairly
Ensure the highest confidence in the integrity and fairness of our state tax system.

5. Taxpayers’ Rights FTB 4058 ~Your Rights as a Taxpayer
We must inform you, in simple, nontechnical language, of procedures and your remedies and rights during audit, appeal, and collection proceedings. We must include information regarding taxpayers’ rights in tax booklets.
You can receive information about your rights as a taxpayer, how to protest/appeal, and how to contact the taxpayer advocate at various stages of the audit and/or collection process. These stages include the initial notice of audit, the notice of proposed additional tax, and all collection notices.
PUBLICATON 4058 California Taxpayer’s Bill of Rights – Information for Taxpayers
. 4058B A one-page overview of California Taxpayers’ Bill of Rights. Highlights some basic rights.
4058C - This publication describes the R&TC provisions
Your Rights
Professional and Courteous Service
Privacy and Confidentiality
Representation
Relief
Help With Unresolved Tax Problems
Protests, Appeals, and Judicial Review
Pay No More than the Correct Amount You Owe

6. Taxpayer Advocate Relief
What is Taxpayer Advocate Equity Relief?
Abatement of penalties, interest, fees…
Caused by erroneous action or inaction by FTB and not by taxpayer
Unreasonable delay
Up to 10,000 Relief
Amended authority beginning January 1, 2016.
Form FTB 3705 available on Taxpayer Advocate Page at FTB.CA.GOV
Signed by TP, including duly authorized agent or representative with POA on File, we’ll cover how to file POA later.
The TRA is authorized to provide relief and abate penalties, fees, additions to tax or interest assessed, up to $10,000, to a TP when FTB caused an erroneous action or inaction in processing documents filed or payments made by taxpayers where:
Taxpayer did not significantly cause error or delay.
No other relief is available.
Concurrance by Executive Officer
Relief limited to $ in 2016 and is indexed.
Use FTB 3705, Request for Taxpayer Advocate Equity Relief. 6

7. Advocate Assistance ftb.ca.gov – search: “Problem” On the Web
Fax
Call
FRANCHISE TAX BOARD EXECUTIVE AND ADVOCATE SERVICES MS A381 PO BOX 157 RANCHO CORDOVA, CA
Mail
For Fiscal Year (FY) (July 1, 2015, through June 30, 2016), the Taxpayers’ Rights Advocate’s Office responded to over xxxxxxx contacts from taxpayers.
Executive and Advocate Services handles specific, individual account issues, such as:
Coordinates taxpayer complaints and problem resolution received from:
The taxpayer or their representative
Elected officials
Other government agencies
The Taxpayers’ Rights Advocate
Help resolve problems when normal channels fail.
No Cost
Report a problem online at FTB.CA.GOV. Keyword: Problem
Submit: Taxpayer Advocate Assistance Request or Advocate Equity Relief Form
Phone: Fax:
Mail FRANCHISE TAX BOARD EXECUTIVE AND ADVOCATE SERVICES MS A381 PO BOX 157 RANCHO CORDOVA, CA
Call toll-free number at

8. FTB Form 914 Use when: Unwarranted financial harm
Immediate threat of adverse action
Help will not be in time to avoid hardship
Repeated attempts for service – without success
Help with a tax problem.
We use the term when normal channels fail. Does not constitute a protest or an appeal. Does not extend the time to protest or appeal.
Examples:
As mentioned on the previous page, you may report a problem by going to ftb.ca.gov and searching on “report a problem.”

9. Provide Education Services
Presentations
Available to: Various Non-profit organizations and community groups of 25 or more
Tax Practitioner Seminars
Partner with California Board of Equalization: BOE.ca.gov
Presentation: Forms of Ownership
Small Business Seminars
Presentations: California Tax Updates ~ Audit & Collection Issues ~ Fraud & ID Theft - Other
Available to: Non-profit organizations ~ community groups ~ government-funded educational institutions. CSEA, CalCPA, State Bar, Tax Professional groups (25 or more)
(25 or more attendees.)
Sponsored by Board of Equalization Members & statewide elected officials.
Held throughout California.
Presentation: Forms of Ownership
Details at: BOE.ca.gov
Other: We want your feedback!

10. Keep Informed
Monthly no-cost online publication
Updates of CA income tax laws, regulations, policies & procedures.
Calendar of events
Register at: ftb.ca.gov
Tax News is our monthly online publication designed to inform tax professionals about state income tax laws; our regulations, policies, and procedures; and events that affect the tax professional community. We also periodically release Tax News bulletins to quickly notify subscribers of urgent, time-sensitive information.
It includes various topics from Navigation of our Webpages to complex topics as Market Based Sourcing. It also includes a calendar of events for Advocate activities, SBF; CSEA Presentations, Etc.
We provide a subscription service that delivers Tax News (including the bulletin service) to you via . Subscribe at ftb.ca.gov – select the Tax Professional tab on the home page, Services/Resources in the box on the left, and then Tax News. 10

11. Tax News
Here’s how to get there:
Go to ftb.ca.gov,
In the upper right corner you will see News and Events. Select news and events.
From the News and Events page….look for the “subscribe” link; or select the links to:
This Month's Edition Flashes Previous Editions & Archive About Tax News 11

12. Systemic Issues Management System (SIMS)
Audit programs
Collections programs
Filing programs
We identify and track systemic issues, and find solutions in a cooperative effort with our Program Managers
Relates to systems, policies, or procedures.
Involves protecting taxpayer rights, or reducing or preventing taxpayer burden.
As of 8/1/2016: Six (6) (issues over to program areas for research. (4) came back non-systemic, One issue still outstanding, and One came back with detailed steps to resolve the issue regarding notices to out-of-state LLCs.
What are the steps?
Numbers have reduced over the years.

13. What Does SIMS Look Like?
Go to FTB.CA.GOV and type “SIMS” in the search box. The first link will take you to Reporting Systemic Issues
(our search engine will ask you if you meant “SIMMS.” click it – no results)
Affects multiple taxpayers.
Impacts segments of the population locally, regionally, or nationally.
Relates to FTB systems, policies, or procedures.
Involves protecting taxpayer rights, or reducing or preventing taxpayer burden 13

14. Taxpayers’ Bill of Rights Hearing
Responses
Dissolution Process
Penalties which are perceived as excessive
Slow resolution of compliance inventory
CTA: Casazza:
Slow Resolution of Compliance Inventory
FTB Interest Miscalculation
Per-Partner/Per-Shareholder Penalty
R&TC Section 23036(i) Credit Limitation
Written Advice
CSEA: Pickford:
1. Inability to Dissolve/Cancel Business Entities Formed and not “Launched”
2. Inadvertent Failure to File Form 568 by Single-Member LLC’s (SMLLC)
California Disasters

15. Annual Report to Legislature
Advocate’s Address
Compliance
Filing Statistics
Initiatives
Education and Outreach
Bill of Rights Hearing
Customer Service
Auditor Retention
Collections
Conformity
Late Legislation
Tax Liens
Penalties
E&O
Protests
Claims
Taxpayers’ Bill of Rights Hearing
Filing Statistics
Filed Annually on 12/1/XX

16. New Law
AB 154
Reporting Foreign Financial Assets; When required attach 8938 Statement of Specified Foreign Financial Assets or $10,000 penalty
SB 1255
Under CA Civil Code two people can live together and be legally separated
AB 154 – As part of the Conformity bill; there is a requirement for all entities to report foreign asset Foreign Financial Assets; 50k single MFS for residents - 100K MFJ; 75K for nonresidents; 150K MFJ; failure to file results in a 10,000 dollar penalty. If TP doesn’t respond in 90 days, another 10k and 10k every 30 days until 50k max is reached.
SB 1255 – two people no longer are required to live separately to be considered Legally Separated:
This bill would define “date of separation” for purposes of the Family Code to mean the date that a complete and final break in the marital relationship has occurred, as evidenced by the spouse’s expression of his or her intent to end the marriage and conduct that is consistent with that intent. The bill would direct a court to take into account all relevant evidence in determining the date of separation.

17. New Law Voly – Cons: Diabetes and Salton Sea Funds
Corporation and Partnership Filing Dates
AB 2430 and SB 1416
Voly – Cons: Diabetes and Salton Sea Funds
AB 1775 – For taxable years beginning on or after January 1, 2016, this bill would modify the California return due dates of partnerships and C corporations to be similar to federal law..
Partnership returns would be required to be filed on or before the 15th day of the third month following the close of the taxable year, and
 C corporation returns would be due on or before the 15th day of the fourth month following the close of the taxable year.
This bill also would make corresponding changes to the due dates of returns of LLCs:
 LLCs classified as partnerships would have a return due date of the 15th day of the third month following the close of the taxable year;
 LLCs classified as corporations would have a return due date of the 15th day of the fourth month following the close of the taxable year; and
 LLCs that are disregarded as separate entities (SMLLCs) would have a return due date based on the return due date of the owner:
o SMLLCs owned by an S corporation, partnership, or LLC classified as a partnership, would have a return due date of the 15th day of the third month following the close of the taxable year.
AB 2430 and SB 1416 – Voly Cons: only here to acknowledge that they may be moved to a schedule instead of being part of the return.
Legal Ruling Calculation of the Limited Liability Company Fee -- Real Property Held for Sale to Customers in the Ordinary Course of Business : add back adjusted basis of property (COGS) if the property was held for use in a trade or business.
The list is not all inclusive: Check out FTB.CA.GOV: Franchise Tax Board Legislation Information
836- strategic aircraft credit Chaptered 6/27/16
837- Low income housing – allocation to partner; credit for sale with a sales
County Tax for the wealthy administered by FTB
SB907 Galgiani Mortgage Forgiveness Debt Relief - Vetoed!
SB526 Court assignment of tax liability between spouses - Vetoed!
This bill would extend the state exclusion of mortgage forgiveness debt relief for three years, to generally apply to discharges occurring in 2014, 2015, and 2016.
The reason for the bill is to prevent undue hardship to taxpayers who would otherwise be subject to taxation resulting from having all or part of their loan balance on their principal residence forgiven by their lender

18. Current Issues Regulation 25136-2 Legal Ruling 16-01
Marketable Securities Amendments Final
Legal Ruling 16-01
Dealers in Real Estate Calculation of the LLC Fee
FTB Notice
Water's-edge Elections
Regulation :
REGARDING MARKET-BASED RULES FOR SALES OTHER THAN
SALES OF TANGIBLE PERSONAL PROPERTY: This may affect more than just the 400 TP originally identified, including PIT TP.
Example: Real Estate Development Corp with its commercial domicile in State A is developing a tract of land in this state. Real Estate Development Corp contracts with Surveying Corp from State B to survey the tract of land in this state. Regardless of where the survey work is conducted, where the plats are drawn, or where the plats are delivered, the recipient of the service, Real Estate Development Corp, received all of the benefit of the service in this state.
Legal Ruling 16-01
Calculation of the Limited Liability Company Fee -- Real Property Held for Sale to Customers in the Ordinary Course of Business : add back adjusted basis of property (COGS) if the property was held for use in a trade or business.
FTB Notice : If you have clients with Water’s Edge election; FTB has provided guidance about Water’s Edge elections relating economic nexis.

19. Where’s my Refund? Filing Season * Challenges * Expectations
* Assurance
Time Frames:
7-12 days
30 days
Over 30 days
TI Accounts; RA; Fraud; Privacy and Security slowed refunds. 84% 7-12 days; We had set the expectation to be two weeks for many years. With sophistication of “fraudsters” more sophistication of systems and more time to get the correct refund to the correct person.
Check within 30 days
Other over 30 days (these are returns with issues)
Problems with communication methods: screenshot issues; etc.
Taxpayer Services 457,000 calls with 38% LOA; Wait time doubled from 9 to 18 minutes
Hotline had 80,000 calls with LOA of 77%; 15 minute wait
15,000 secure chat; Live chat 58,000 and loa of 78%
44,000 field contacts
VITA 630,000 returns including EITC – specific data not available for EITC

20. Where’s my Refund? Common Notices
FTB 3904 – Request to Confirm Tax Return Filing ID Theft Suspected
FTB 4734D – Request for Tax Information and Documents Validating Information
FTB Additional Documentation Required - Refund Pending Cal EITC
FTB 4579 – Demand to Furnish Information Employer Validation
How to protect yourself:
Here are some simple safeguards you can use:
Lock doors to restrict access to paper or electronic files;
Require passwords to restrict access to computer files;
Encrypt electronically stored taxpayer data;
Backup and SECURE electronic data for recovery purposes;
Shredding paper containing taxpayer information before throwing it in the trash.
Encrypt with sensitive personal information.
Here are other tools to protect your information:
Install Antivirus and configure it to automatically scan and update for viruses, etc. on all computers .
Passwords: Use strong passwords of 8 digits or more with upper and lower case letters, numbers, and special characters.
If cloud storage is used, employ a strong and complex password with at least 15 characters.
Don’t share your passwords, including MyFTB
Use a dedicated system for processing sensitive data as financially feasible.
If you do not have the knowledge or resources to manage your own small business network, consider outsourcing to an IT consulting firm or cloud services. These have the benefit of not only having security be part of the service, but the added value of maintaining a team of professionals on call to manage your network and make sure it’s available when you need it.
Resources:
IRS Publication 4557 — Safeguarding Taxpayer Data, A Guide for Your Business — A list of lists to help safeguard taxpayer information and enhance office security.
Checklists
1 Administrative Activities
2 Facilities Security
3 Personnel Security
4 Information Systems Security
5 Computer Systems Security
6 Media Security
7 Certifying Information Systems For Use
Report identity theft to the FTC at
Contact one of the major credit bureaus to place a fraud alert on your records:
Websites:
(FTC web site)
Pub 1345, Handbook for Authorized IRS e-file Providers (Security)
Pub 4557, Safeguarding Taxpayer Data
Pub 4600, Safeguarding Taxpayer Information
Pub 4535 (EN-SP), Identity Theft Prevention and Victim Assistance
Search IRS.gov, Keywords: Identity Theft

21. Form FTB 3532 Head of Household *Required for E-File Changes:
Full-time Student
Disabled during the year
Form FTB 3532
For TY 2015 filing season, we had the form disabled meaning taxpayers E-file returns were not rejected if they didn’t complete the 3532.  (We did this to help ease taxpayers into the mandatory form requirement.) 
Beginning for TY 2016 the 3532 is required, for taxpayers who E-file, to include the form and ensure all fields are completed.  Failure to do so would result in the return being rejected as incomplete. 
We will add two boxes for “full time student” and “disabled” to the form 3532 for 2016.  (Spidell recommendation). 
permanently and totally disabled at any time during the calendar year

22. On the Horizon Proposal to change the amended return form.
540X
Check the Box
Top 500
Able to challenge license suspensions
E-file*
Extension payments made through e-file
Proposal to change the amended return form.
No longer a separate form
Check the box like the 568
Benefits – will allow us to process amended returns faster, which is better for taxpayers, especially for refunds
Challenges – Transition/expectation of self correction
E-filing of extension payments. Rather than using Web Pay, separately

23. EITC Earned Income Tax Credit For 2015 400,000 Updates for 2016
Families rec’d
$200 million
FTB Efforts
Updates for 2016
Earned income tax Credit or EITC as we like to call it.
Last Year: SEE ABOVE
FTB Efforts:
FTB is a partner with ……….. We administer the credit, we are involved in Education and Outreach, Our VITA program prepares many, many CA EITC. We know your client base is limited when it comes to EITC, especially CA but perhaps you know someone or a group that may be able to take advantage of the CA EITC.
Updates This Year: For IHSS and caregiver lives in the home; the income may be exempt; therefore, non-qualifying.
IN HOME SUPPORTIVE SERVICES.
Also, Employers must inform all employees of EITC.
Maximum CA EITC:
No qualifying children: $ 217
One qualifying child: $1,452
Two qualifying children: $2,406
Three qualifying children: $2,706
$6,718 if there are
NO qualifying children
$10,088 if there is
ONE qualifying child
$14,162 if there are
TWO or more qualifying children

24. EITC Earned Income Tax Credit Employer Notification
In-Home Supportive Services (IHSS) Supplementary Payments
excluded
Employer Notification
Must provided
within one week before or after, annual wage Summary
(W2s or 1099)
Earned income tax Credit or EITC as we like to call it.
Last Year: SEE ABOVE
FTB Efforts:
FTB is a partner with ……….. We administer the credit, we are involved in Education and Outreach, Our VITA program prepares many, many CA EITC. We know your client base is limited when it comes to EITC, especially CA but perhaps you know someone or a group that may be able to take advantage of the CA EITC.
Updates This Year: For IHSS and caregiver lives in the home; the income may be exempt; therefore, non-qualifying.
IN HOME SUPPORTIVE SERVICES.
Also, Employers must inform all employees of EITC.
Maximum CA EITC:
No qualifying children: $ 217
One qualifying child: $1,452
Two qualifying children: $2,406
Three qualifying children: $2,706
$6,718 if there are
NO qualifying children
$10,088 if there is
ONE qualifying child
$14,162 if there are
TWO or more qualifying children

25. Fraud and ID Theft Contact us - ID Theft Resolution Coordinator
FTB Efforts
Fraud Prevention
What to do if you suspect ID Theft
Contact us - ID Theft Resolution Coordinator
Discuss these topics briefly.
FTB Efforts: At FTB we take ID Theft and Privacy and Security very seriously. We have very robust security measures in place and we train our employees to ensure taxpayer privacy and security of their personal information. Still, criminals try to take TP information and use it to intercept refunds or to create fictitious TP and report false returns to obtain refunds. FTB will contact taxpayers to verify taxpayers and validate their returns. We recognize this is an inconvenience but it is necessary to ensure the right refund goes to the right person.
Example: I have a friend who had their IRS refund taken. It took over a year to resolve.
Fraud Prevention: In a few minutes I’ll talk about what can be done to prevent fraud and id theft
What to do: I’ll also instruct you on what to do if you suspect ID theft
ID Theft Coordinator: Who to contact if sensitive information has been compromised.
We can even validate a W-2 if you are suspicious of its authenticity.

26. Number One Scam Phishing
Fraud and ID Theft
Who is a Target?
Number One Scam Phishing
Other Compromises
How to Identify
In order to understand and appreciate the seriousness of Fraud and Id Theft, we should discuss it further:
Who: EVERYONE
Recently, tax professionals have been the target of criminals for identity (ID) theft. Among other reasons, tax professionals work with a large amount of sensitive data; stolen data can be used to file fraudulent returns rather inexpensively, and the return to criminals is very high. What’s more, smaller firms make an attractive target because in general, they have fewer security controls and it is easier to execute an attack.
Individuals and Business entities:
What: Did you know that phishing scams are the number one attack method?  These scams entice the user to click on an attachment, which contains malicious software that tracks keystrokes and may identify password information. You can minimize exposure to phishing scams by not opening messages from unknown senders….. The infamous Phone Call. I have received them from my desk phone at work.
Other Compromises: this may lead to hacking and physical break in. Criminals steal identity and act as another person to intercept refunds. Other criminals file fraudulent tax returns with real information and hope success. No longer do criminals steal credit cards or create new accounts to buy stuff, they are getting more and more creative.
We’ve had more than one person act as a tax professional and set up clients to file returns on their behalf for the purpose of intercepting refunds.
How to Identify:
A return is rejected; IRS reject codes indicate the taxpayer’s SSN already has been used
Activity on an account after all issues have been resolved on a tax year
An IRS notice indicates your client received wages from an employer unknown to them
Return accepted and acknowledged when a return hasn’t been filed.
Other ways to protect your business from cyber criminals: range from locking doors to restricting access to paper or electronic files to installing antivirus software with automatic updates to recognize viruses and malware on all computers on your business network. Frequently back up and secure data on a flash drive or external hard drive and store in a fireproof safe.  Use strong passwords and don’t share them including your MyFTB password. These are only a few examples of ways to reduce ID theft from your office.
For more information on how you can protect client information and your business, see IRS Publication 4557, Checklist for Safeguarding Taxpayer Data. It contains a series of check-lists for creating a comprehensive security plan that addresses functions such as administrative activities and security measures for facilities, personnel, information and computer systems, and electronic media, as well as how to certify information systems for use by your business.
Take some time to review IRS Publication 4557 and if you do not have the knowledge or skills to complete the checklist tasks, you can use the tasks as a guide to hire someone who can. Remember confidential information is only confidential as long as it is protected.

27. How to protect yourself
Fraud and ID Theft
How to protect yourself
Resources
IRS Publication 4557
Credit Reporting
How to protect yourself:
Here are some simple safeguards you can use:
Lock doors to restrict access to paper or electronic files;
Require passwords to restrict access to computer files;
Encrypt electronically stored taxpayer data;
Backup and SECURE electronic data for recovery purposes;
Shredding paper containing taxpayer information before throwing it in the trash.
Encrypt with sensitive personal information.
Here are other tools to protect your information:
Install Antivirus and configure it to automatically scan and update for viruses, etc. on all computers .
Passwords: Use strong passwords of 8 digits or more with upper and lower case letters, numbers, and special characters.
If cloud storage is used, employ a strong and complex password with at least 15 characters.
Don’t share your passwords, including MyFTB
Use a dedicated system for processing sensitive data as financially feasible.
If you do not have the knowledge or resources to manage your own small business network, consider outsourcing to an IT consulting firm or cloud services. These have the benefit of not only having security be part of the service, but the added value of maintaining a team of professionals on call to manage your network and make sure it’s available when you need it.
Resources:
IRS Publication 4557 — Safeguarding Taxpayer Data, A Guide for Your Business — A list of lists to help safeguard taxpayer information and enhance office security.
Checklists
1 Administrative Activities
2 Facilities Security
3 Personnel Security
4 Information Systems Security
5 Computer Systems Security
6 Media Security
7 Certifying Information Systems For Use
Report identity theft to the FTC at
Contact one of the major credit bureaus to place a fraud alert on your records:
Websites:
(FTC web site)
Pub 1345, Handbook for Authorized IRS e-file Providers (Security)
Pub 4557, Safeguarding Taxpayer Data
Pub 4600, Safeguarding Taxpayer Information
Pub 4535 (EN-SP), Identity Theft Prevention and Victim Assistance
Search IRS.gov, Keywords: Identity Theft

28. ID Theft Resolution Coordinator
W-2 Verification within 48 hours
Fax number:
Telephone:
Request for Tax Information and Documents (Form FTB 4734D) Franchise Tax Board
Filing Compliance Bureau MS F151 PO Box 1468 Sacramento CA
Form FTB 3552, Identity Theft Affidavit
Franchise Tax Board
ID Theft Resolution Coordinator MS A232 PO BOX 2952 Sacramento CA
If you have a concern that your client’s W-2 may be fraudulent, you can fax copies of suspicious W-2s to Again that fax number is
Include your contact information with your fax number. Our goal is to confirm the validity of the W-2 within 2 days. Referring a questionable W-2 to us, regardless of whether the return is transmitted, enables us to prevent the fraudulent refund from being issued.
We may write to you and ask for information :Form FTB 4734D -
You may write to us and attach: form FTB 3552, Identity Theft Affidavit; down-load it from our website FTB.CA.GOV
additional information is required to verify your identity so that we may help you in the future.

29. Communicate with FTB MyFTB - Ask a Legal Expert MyFTB - Chat
Send a Message
Introduce methods of communication; distinguish ALE from Chat and Message; the latter two are MyFTB 29

30. Ask a Legal Expert
Ask a Legal Expert allows you or your representative to submit legal questions directly to a specific Legal Division Bureau. This gives our assigned staff an avenue to directly respond to your basic legal questions quickly and informally. 2-3 weeks; Any stats on this?
Types of questions
This program is for basic legal questions.
If your question:
Requests information on issues that a Chief Counsel Ruling or other formal guidance more properly addresses, do not use this program. See our Rulings Guidelines set forth in FTB Notice
Seeks non-legal advice, we refer you to other Department resources.
Your questions should not pertain to matters that are under audit, at protest, on appeal, in settlement, or in litigation. Those questions should be sent to the staff member assigned to the case.
In many areas, California law is the same as federal law. If you are requesting clarification of federal law, federal rulings, or other federal guidance, contact the Internal Revenue Service.
Information you provide
Any inquiry you submit to Ask a Legal Expert must follow these guidelines:
Requests to explain, interpret, or apply new law
Describe the new law or authority and clearly state the question.
Technical tax questions
Clearly describe the issues.
Provide a complete material facts statement.
Identify the relevant statutes or materials that prompted the inquiry.
Provide the research, if any, you undertook to resolve the question.
Identify whether the question is applicable to:
California law only.
California and federal law where California law is based on federal law.
We require these items to improve efficiency and reduce our response time.

31. View tax returns, notices, and correspondence
Number of registered:
MyFTB Users:
Basic User 140,000 – non-secure version for use with CalFile
Tax Preparer
Business User 35,779
Individual 250, Basic equals 235,346
Total 490,000
Web requests Where’s my refund 4.1MIllion
Features:
Build your own client list
View the status of a tax return
View payment status and method
Chat with an FTB agent about your client’s account
Additional Access With Power Of Attorney
View tax returns, notices, and correspondence
Receive alerts on client activity
Submit online protests
Update your client’s address and phone number
This year we introduced an enhanced MyFTB, which has a new look and feel. It provides taxpayers and tax professionals secure online access to information such as account details, contact information, returns and payments, correspondence, and proposed assessments.
It also provides new self-service features, including the ability to file a power of attorney declaration online; file a nonresident withholding waiver request; initiate a protest or proposed assessment; initiate a message to FTB, with or without an attachment; initiate a secure chat with an FTB representative; skip a personal income tax installment agreement payment; and use a tax calculator to calculate a future balance.

32. Communicate Secure Chat Individual Business Entity
MyFTB includes the capability to chat about your client’s specific account information though the “secure chat” feature.

33. Send Message to FTB Can send up to 10 messages a day.
MyFTB includes the capability to send a message and attachments to FTB.
Can send up to 10 messages a day.
Can attach documents up to 10MG each.

34. POA Updates Preferred Methods Time Frames Common Errors
Preferred method: MyFTB
Upload scanned copy; make sure it is the same as the data entered into MyFTB before uploading.
Time Frames for Processing
30, 45 and 90 business days; that’s 6 weeks, 9 weeks and 4 months to you and me.
We discourage the use of fax…..
Common Errors: See FAQ from Tara Duttra
Explain expanded implied consent –
Rejection Errors:
From Tara Dutta:
Wizard input does not match uploaded document; it must! For example - Primary Representative does not match
Missing information including Names and Signatures
Multiple taxpayers included in one upload; one POA upload per Taxpayer
Other form such as a 2848 is used and it does not identify “CA 540” or “CA Tax Matters”
The uploaded POA filed a corporation unity group (single) return but did not have the parent or Key Corporation file the POA declaration on the group’s behalf.
Look at any line on the POA where and error can occur and it does; try to keep them simple as possible; one per taxpayer and use the uploaded copy to complete the wizard
Account errors: Duplicate accounts based on different identification numbers; CPA number PTIN, etc.; different systems POA Database v. MyFTB
How to make changes to POA: change POA; Revoke

35. Individual and Business Entity
Audit Issues
Individual and Business Entity
Capital Gains and Losses
Like-Kind Exchange (IRC Section 1031)
Head of Household (HOH) Filing Status
Employee Business Expenses
Shareholder/Partner/Owner's Basis in a Pass Through Entity
Capital Gains and Losses
We verify whether gains and losses were reported correctly for a variety of audit issues including sales of stock, business property, casualty losses, and amounts flowing through from pass through entities.
Like-Kind Exchange (IRC Section 1031)
We continue to identify IRC Section 1031 tax issues including erroneous boot calculations, improper property identifications, and failure to meet other deferral requirements.
Head of Household (HOH) Filing Status
Common errors include:
The qualifying individual’s income exceeds the gross income test.
Taxpayers who do not meet the requirements to be considered unmarried or considered not an RDP.
Employee Business Expenses
We may ask taxpayers claiming unreimbursed employee business expenses to provide documentation to substantiate their employer’s reimbursement policy to determine if their expense is allowable.  
Shareholder/Partner/Owner's Basis in a Pass Through Entity
We verify basis to determine the correct reporting of flow-through items and amounts reported on the sales of interests in pass through entities.

36. Effective Enforcement Operational Excellence
Strategic Plan
Customer Centric
Effective Enforcement
Strong Organization
Operational Excellence
FTB is working on its Strategic Plan. We are continuing with our organizational goals as you can see. Our Advisory Board has provided guidance for FTB for our Plan Revision.
Customer Centric: This is about the Taxpayer Journey, Not as much about service is it is about trust.
Effective Enforcement
Strong Organization - Competence of Staff; can customers get the help they need.
Operational Excellence

37. Lila Fedler Technical Assistant to the Advocate
Contact Information
Lila Fedler Technical Assistant to the Advocate

38. Marc Narlesky Technical Assistant to the Advocate
Contact Information
Marc Narlesky Technical Assistant to the Advocate

39. Chris Smith Tax Practitioner Liaison
Contact Information
Chris Smith Tax Practitioner Liaison

40. Need More Information? Visit ftb.ca.gov
FTB.CA.GOV has many options from forms to web pay and including MyFTB.