Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
1
California FTB and SBE
Procedure
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
2
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
2
An Overview Of The Ent...
3
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
3
Settlement,
though not...
4
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
4
The State Produces
Man...
5
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
5
FTB Publication
985 –
...
6
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
6
How The Audit
Wraps Up
7
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
7
You get a
series of
In...
8
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
8
The Auditor
presents h...
9
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
9
You can
respond to the...
10
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
10
Page 2 of NPA
11
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
11
Settlement
12
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
12
Settlement
Revenue &...
13
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
13
Settlement [continue...
14
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
14
FTB 2007-2 on
the Se...
15
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
15
Protest:
If You Don’...
16
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
16
Page 1 of
Taxpayer’s...
17
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
17
Page 2 of
Taxpayer’s...
18
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
18
The FTB’s Protest
Pe...
19
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
19
Preliminary
Determin...
20
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
20
Sample Notice
of Act...
21
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
21
Acceptance of
Taxpay...
22
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
22
Acceptance of
Taxpay...
23
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
23
Sample request
to ta...
24
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
24
Sample Board
Agenda ...
25
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
25
FTB Publication
81 –...
26
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
26
FTB Publication
143 ...
27
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com
California FTB and SBE Procedure
27
Dismissal of
Taxpaye...
28
Questions and Answers
Givner & Kaye, 
A Professional Corporation
Owen@GivnerKaye.com 28
California FTB and SBE Procedure
Upcoming SlideShare
Loading in …5
×

California FTB and SBE Procedure

1,312 views

Published on

An overview of the entire state administrative process. Learn about when you can settle during the process, some great publications to read up on, how the audit wraps up, settlement, and what to do if you don't like the audit result.

For more information, please visit us at www.givnerkaye.com

Published in: Education, Technology, Business
  • Be the first to comment

  • Be the first to like this

California FTB and SBE Procedure

  1. 1. 1 California FTB and SBE Procedure Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com
  2. 2. 2 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 2 An Overview Of The Entire State Administrative Process
  3. 3. 3 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 3 Settlement, though not specifically on the chart, is theoretically available at any time during Audit, Protest and Appeal.
  4. 4. 4 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 4 The State Produces Many Helpful Publications
  5. 5. 5 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 5 FTB Publication 985 – Audit/Protest/ Appeals (The process)
  6. 6. 6 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 6 How The Audit Wraps Up
  7. 7. 7 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 7 You get a series of Information Document Requests. Note that the one on the right is Number Eight!!!
  8. 8. 8 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 8 The Auditor presents his or her proposed conclusions in an AIPS. Depending upon your response, there may be more than one AIPS.
  9. 9. 9 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 9 You can respond to the AIPS. If you don’t convince the auditor otherwise, you will get an NPA. Page 1 of NPA. You have 60 days to file a Protest or else it goes final.
  10. 10. 10 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 10 Page 2 of NPA
  11. 11. 11 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 11 Settlement
  12. 12. 12 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 12 Settlement Revenue & Taxation Code Section 19442(a): “It is the intent of the Legislature…the Franchise Tax Board…pursue settlements…with respect to civil tax matters in dispute that are the subject of protests, appeals, or refund claims, consistent with a reasonable evaluation of the costs and risks associated with litigation….” In 2005-2008 75% of cases submitted for settlement were accepted, and 70% of those were, in fact, settled. The FTB has been known to suggest settlements for some cases sent to Protest and Appeal. Asking for settlement does not stop the clock, e.g., for filing a Protest or Appeal. Tolling only starts when the matter is accepted into settlement. After a case is settled, installment payments are not accepted. Why request settlement? High income client. Major corporation. Quick resolution. Hazards of litigation. Availability of skilled FTB staff, e.g., Pat Bittner. Costs. Timing. The settlement personnel may not start dealing with your case for 3 – 4 months after it has been accepted into the program. However, when they get to it they will spend full time on it.
  13. 13. 13 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 13 Settlement [continued] The reputation is that settlement will never make a deal better than 50%. The FTB will tell you that is not true, that there have been cases where the FTB has even conceded 70% or 100%. However, they are rare. When the matter is finished, it gets sent back to Protest to get processed and closed. Settlement will not normally address future years. Process for settling cases: (i) case is assigned to the settlement bureau staff; (ii) contact letter is sent out to the taxpayer’s representative; (iii) nondisclosure agreement is signed; (iv) case review, with sometimes a request for additional information; (v) settlement conference; (vi) settlement approved by the Director and Chief Counsel within 9 months or failure to reach agreement. Post-Agreement Process: (i) taxpayer executes settlement agreement; (ii) full payment of agreed amount; (iii) Attorney General review; (iv) FTB approval; (v) assigned bureau staff executes settlement agreement; and (vi) public record statement. If there is a request from the public for information about the settlement, the State only tells the taxpayer’s name, amount in dispute and the amount agreed.
  14. 14. 14 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 14 FTB 2007-2 on the Settlement Procedures
  15. 15. 15 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 15 Protest: If You Don’t Like The Audit Result; Don’t Think Settlement Is A Good Alternative; and Don’t Want To Pay The Tax (Yet) And Sue For A Refund.
  16. 16. 16 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 16 Page 1 of Taxpayer’s Protest – filed within 60 days of the NPA.
  17. 17. 17 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 17 Page 2 of Taxpayer’s Protest
  18. 18. 18 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 18 The FTB’s Protest Personnel can request information that it feels is necessary for the matter. Taxpayer’s are surprised because they thought information requests ended with the Audit. Sample FTB Demand To Third Party For Information During A Protest.
  19. 19. 19 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 19 Preliminary Determination Letter In A Protest
  20. 20. 20 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 20 Sample Notice of Action – 30 Days To File with Board
  21. 21. 21 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 21 Acceptance of Taxpayer’s SBE Appeal – Page 1
  22. 22. 22 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 22 Acceptance of Taxpayer’s SBE Appeal – Page 2
  23. 23. 23 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 23 Sample request to taxpayer and FTB from SBE For Additional information before Board hearing.
  24. 24. 24 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 24 Sample Board Agenda for Culver City meeting.
  25. 25. 25 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 25 FTB Publication 81 – Franchise and Personal Income Tax Appeals
  26. 26. 26 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 26 FTB Publication 143 –Your Appeal Hearing Before The Board
  27. 27. 27 Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com California FTB and SBE Procedure 27 Dismissal of Taxpayer’s SBE Appeal. This happens regularly if the only reason for the Appeal is to cause the IRS statute of limitations to run.
  28. 28. 28 Questions and Answers Givner & Kaye,  A Professional Corporation Owen@GivnerKaye.com 28 California FTB and SBE Procedure

×