We corrected an error and revised the amount of California adjusted gross income on your return. Please review the California Form FTB 3532, Head of Household Filing Status Instructions. We revised your Earned Income Tax Credit/Young Child Tax Credit because you or your spouse/RDP did not provide a valid individual taxpayer identification number (ITIN). Sales and Use Tax Programs: (billings for late payments, late returns, or . e-Services | Access Your Account | California Franchise Tax Board Access Your Account *= Required Field Privacy Policy * User Name Forgot user name * Password Forgot password Passwords are case sensitive * Type the characters from the picture New User? We strive to provide a website that is easy to use and understand. We revised your Exemption Credits to the correct amount for the tax year. The Form W-2 reflects wages paid by warrants/direct deposit payments issued during the 2022 tax year, regardless of the pay period wages were earned. ( Rev. Gather: Your Form 3514, California Earned Income Tax Credit and Form 540 or 540 NR tax return to confirm your entries and calculations are correct. We revised the penalty amount because you made an error when you transferred the penalty amount from Form 3853, Health Coverage Exemptions and Individual Shared Responsibility Penalty, to your tax return. Contact or submit documents to the Filing Compliance Bureau: Sacramento, CA 95812-1462, Gather: Your Form 3514, California Earned Income Tax Credit and your Form 540 or 540NR tax return to confirm your entries and calculations are correct. If you disagree with this, please mail us a copy of your qualifying persons birth certificate, any documents showing your qualifying persons correct social security number, and, if applicable, the complete child custody agreement for this tax year. PO Box 1468 The CA Franchise Tax Board does not charge a first-year fee for new businesses formed in the last 15 days of the year. The information is only for the tax year printed at the top of the notice. You incorrectly calculated your CA Exemption Credit Percentage when you divided your CA Taxable Income by your Total Taxable Income. Gather: Proof of your earned income (W-2, W-2C, 1099 forms) and final year-to-date pay stub(s). You dont need to contact us. We revised or disallowed your Foster Youth Tax Credit based on the earned income reported on your tax return or provided by your employer or client. We disallowed your Dependent Exemption Credit(s) because FTB 3568, Dependent Identification Number Requirement Exception, was incomplete and/or did not include identification document(s). The overpayment on your tax return is not enough to cover all contributions you requested. Be sure to: Enter the code found at the end of each paragraph from your notice: You can use the pipe character (|) to search for more than one code at a time. On subsequent required tax returns, the tax cannot be less than the minimum franchise tax. In addition, you must provide copies of the following supporting documentation to verify self-employment: We applied the overpayment on your tax return to a balance due on your account. Review the site's security and confidentiality statements before using the site. The California Franchise Tax Board imposes a penalty if you do not pay the total amount due shown on your tax return by the original due date. (R&TC Section 19131), If you do not file your organizations' Form 199 by the extended due date, we impose a penalty of $5 per month for each month or part of a month the Form 199 is late. We disallowed your Earned Income Tax Credit/Young Child Tax Credit because you filed a Group return. canceled check, transaction number, etc.) Your Schedule CA subtraction of Taxable Refunds of State and Local Income Taxes cannot be larger than the federal amount. (R&TC Section 19133) The demand to file penalty is in addition to the 25 percent late filing penalty discussed above imposed pursuant to R&TC Section 19131. Contact or submit copies to the Filing Compliance Bureau: Phone: 916.845.7088 Was not a Regulated Investment Company (RIC), Real Estate Mortgage Investment Conduit (REMIC), Financial Asset Securitization Investment Trust (FASIT), or a Qualified Subchapter S Subsidiary (Qsub). We revised the amount of real estate, backup, or nonresident withholding to the amount of available credit we were able to verify. You cannot claim this credit when your qualifying person is 13 years old or older unless they are disabled. Limited Liability Companies as LLCs. If you want to contribute to this fund, contact the fund directly. We revised your filing status to Single because of the information you provided on your California Form FTB 3532, Head of Household Filing Status Schedule. Gather: Your California tax return Review: Your exemption credits on your return. You made an error on your Schedule D-1 when you entered your difference on Line 21b. The California Secretary of States Office as SOS. Unless you have filed a timely claim, we cannot allow a credit or refund after the later of the following dates: (a) Four years from the original due date of the return. (a) The Franchise Tax Board, for purposes of administering the provisions of this article, shall examine all returns filed by taxpayers subject to these provisions. (R&TC Section 19132), We impose a penalty when you have an understatement of tax that exceeds the greater of $1 million or 20 percent of the tax shown on your original return for years beginning on or after January 1, 2010; or exceeded $1 million for years beginning on or after January 1, 2003 and before January 1, 2010. You made an error when you transferred your Exemption Credits on your tax return. If you have any questions related to the information contained in the translation, refer to the English version. Therefore, a business formed at the end of December will only be responsible for one $800 payment in April. For a payment of $1,250 or more, the penalty is 2 percent of the payment amount. You incorrectly calculated your Taxable Income when you subtracted your Income Distribution Deduction from your Adjusted Total Income. We revised the subsidy amount because you do not qualify for a Premium Assistance Subsidy (PAS). You made an error on Form 3506 when you added your qualifying expenses on Line 3. Franchise Tax Board Penalty Reference Chart FTB 1024 (REV 10-2012) PAGE 2 . Text is available . We revised the subsidy amount because you made an error calculating your excess advance payment of Premium Assistance Subsidy (PAS). Gather: W-2s, tax return, related tax documents, proof of payment, if applicable (e.g. Gather: Copies of canceled checks or electronic payment confirmation. We revised or disallowed your special credits. $100 per report if the failure is due to negligence or intentional disregard. We impose the Late Filing Penalty in addition to the Delinquent Penalty (R&TC Section 19172.5). We made a change to the total tax and fee due. California tax penalty code b. Please review your completed Form 3514, California Earned Income Tax Credit and your tax return to confirm your entries and calculations are correct. It has been updated and revised on 9/30/20 . For additional information, go to ftb.ca.gov and search for 3506 to refer to FTB 3506, Child and Dependent Care Expenses Credit instructions. (b) You incorrectly calculated the deduction percentage. Your Schedule CA subtraction of Educator Expenses cannot be less than the federal amount. This article was originally published on 8/28/20. The waiver request should state the specific reasons for failure to file the statement of information within the required filing period. Based on the information you provided, we disallowed or adjusted your Earned Income Tax Credit because the address given for one or more of your qualifying children does not match your address for the required timeframe. For forms and publications, visit the Forms and Publications search tool. 6657. We had a $265,000 FTB debt settle for $225. We revised or disallowed your other State Tax Credit because the other state does not have an income tax or because you were a nonresident of California and the state for which you claimed the credit is not a "reverse credit state". California does a good job of aggressively drawing people into its tax net of high individual (13.3 percent) and business (8.84 percent) tax rates. If you write or fax information to us, include copies of the enclosed notice and any supporting documents. The underlying security may be a stock index or an individual firm's stock, e.g. We revised your claim for State Disability Insurance (SDI) or Voluntary Plan Disability Insurance (VPDI). Sacramento CA 94257-0501. Refer to the Form 3514 instructions for more information. Fax: 916.845.9351 We revised or disallowed your Other State Tax Credit because you were not included in a group nonresident return for the other state or you were not a dual resident of Virginia. They may also include fees to recover the cost of seizure and sale of property. Tax Type Code; California Battery Return Payment: 01061: California Battery Estimated Payment: 02061: California Battery Amended Return Payment: 03061: We revised the special credit listed below to the maximum allowed. 19134. You made an error when you calculated your Total Tax. return, along with: You made an error when you added up your Total Payments. Gather: Your Form 3514, California Earned Income Tax Credit and tax return. (R&TC Section 17942), If you do not file your entitys income tax return by the due date, we impose a penalty of 5 percent of the tax due, after applying any payments and credits made on or before the original return due date, for each month or part of a month the return is late. To save time, upload any supporting documents to your. Forms, publications, and all applications, such as your MyFTB account, cannot be translated using this Google translation application tool. Refer to the Form 3514 instructions for more information. You need california franchise tax. For over 42 years, the firm has provided customized collection programs for its public-sector clientele. canceled check, transaction number, etc.) You do not need to do anything extra before contacting us. Please review your completed Form 3514 to confirm your entries. We disallowed your Child and Dependent Care Expenses Credit. For returns due on or after 01/01/2021, no filing fee is required. This penalty is an estimate and will be recomputed and assessed only if and when the proposed deficiency assessment becomes final. We disallowed your Earned Income Tax Credit/Young Child Tax Credit because your federal adjusted gross income exceeds the limit for your number of qualifying children. You made an error when you combined your Schedule CA, lines 26 and 27. The amounts reported on your original tax return did not match the amounts shown on your amended return. Tax fraud Criminal tax fraud investigations by the IRS and California Franchise Tax Board (FTB) and they are almost always devastating on both a personal and a professional level. We revised your Young Child Tax Credit because you incorrectly transferred your California Earned Income on your Form 3514, California Earned Income Tax Credit. (b) Your California adjusted gross income is over the qualifying maximum amount. This notice outlines the effect of a state tax lien. (b) You incorrectly used the ratio to calculate the tax amount and credits. Please review the "Medical and Dental Expenses" section on your Schedule CA (540), California Adjustments - Residents form. We denied your coverage exemption because you are a resident of California. You incorrectly calculated your Total Tax when you subtracted your Nonrefundable Renter's Credit from your CA Regular Tax Before Credits. Enter the code below and find out what you need to do. We revised the subsidy amount because you made an error calculating your federal poverty line. We revised your Earned Income Tax Credit/Young Child Tax Credit because one or more qualifying children did not have a valid individual taxpayer identification number (ITIN). single-stock futures.. Stock futures are contracts where the buyer is long, i.e., takes on the obligation to buy on the contract maturity date . We revised your Dependent Exemptions to the number of qualifying individuals. We applied the overpayment from your return to that liability. We disallowed your Child and Dependent Care Expenses Credit because the Date of Birth of the qualifying person was not provided. We revised the total tax your corporation reported. We imposed penalties, fees, and/or interest on the tax year, which reduced your refund amount. Gather: Federal adjusted gross income wage and withholding documents (W-2, W-2C, 1099 forms, unemployment). Gather: Withholding documents (W-2, W-2 C, 1099 forms) and year-to-date pay stubs. You made an error calculating your Tax Due. We disallowed your Young Child Tax Credit because you do not have a Qualifying Child. We disallowed the special credit listed below because it is not available in this tax year. (b) The amount exceeded the allowable amount based on your tax liability. We disallowed your Dependent Exemption Credit(s) because you did not provide a valid identification number for your dependent(s). The rate is 5 percent of the total unpaid tax, and a further 0.5 percent for each month or part of a month over the due date that the tax remains unpaid, up to 40 months. Phone: 916.845.7088 We impose a penalty if your entity does not pay, pays late, or underpays an estimated tax installment. These pages do not include the Google translation application. We translate some pages on the FTB website into Spanish. We disallowed the lesser of your Dependent Parent Credit or your Joint Custody Head of Household Credit because you cannot claim both credits. We cannot guarantee the accuracy of this translation and shall not be liable for any inaccurate information or changes in the page layout resulting from the translation application tool. SOS endorsed its Articles of Organization. Interest accrues on penalties from the effective date of the penalty until the date we receive full payment (R&TC Section 19101). Check if you qualify for these cash-back credits: CalEITC, expanded Young Child Tax Credit, and new Foster Youth Tax Credit. We disallowed the special credits you did not identify on your tax return. We translate some pages on the FTB website into Spanish. document.write(new Date().getFullYear()) California Franchise Tax Board. We revised your Dependent Exemption Credit because you did not list the names of each dependent on your return. We disallowed your real estate or other withholding. Phone: 888-635-0494 Collections (option 3, option 3, option 0) 800-852-5711 Main (taxpayer service center, general questions) Wait Times: Wait times can be quite long if you call during the middle of the day. Items per page: See any other code(s) on the notice first for more information. You cannot claim credit for Real Estate and Other Withholding unless you report the related income. We disallowed the special credit listed below because you cannot claim it when you are subject to alternative minimum tax. Schedule F, Profit or Loss from Farming For the current tax year's annual threshold amount, go to ftb.ca.gov and search for "doing business in California." C. Requirement to Estimate Tax Due You made an error on your Schedule S when you entered your California Tax Liability (without other state tax credit). We revised the Mental Health Services Tax to one percent of your Taxable Income over $1,000,000. Earned income includes wages, salaries, tips, other employee compensation, and net earnings from self employment. We revised the subsidy amount because the annual enrollment premium does not match the information provided to you on Form 3895, California Health Insurance Marketplace Statement. Began operation on or after the date it incorporated. Fax: 916.845.9351 For returns filed before January 1, 2011, the penalty is $10 per member/partner for each month or part of the month the return is late or incomplete, not to exceed five months. You did not provide the physical address of the daycare facility on form FTB 3506, Child and Dependent Care Expenses, attached to your tax return. Gather: Form 540, California Resident Income Tax Return, and Form 3853. The reason for the claim and any substantiation. We revised your Personal Exemption based on your Filing Status. We revised your Child and Dependent Care Expenses Credit because you made a math error in calculating the credit. You made an error when you transferred your Schedule CA California Taxable Income to your tax return. The minimum tax for the second tax year of a qualified new corporation was $500. TurboTax Live Basic Full Service. The amount of credit we were able to verify. canceled check, transaction number, etc.). You made an error when you transferred your Schedule D-1 Ordinary Gain/Loss Adjustment to your Schedule CA. Sacramento, CA 95812-1462. If you feel this is an error, please contact the Filing Compliance Bureau: Mail: State of California Gather: copies of your California income tax return. In addition, you must provide copies of the following supporting documentation to verify self-employment: In addition, the California Franchise Tax Board imposes a penalty equal to 0.5% of the total unpaid tax for each month after the initial 5% penalty. Update your records Pay any balance due If you don't agree with the change Enter the code below and find out what you need to do. Contact and submit copies to the Filing Compliance Bureau: We revised or disallowed your Young Child Tax Credit based on the earned income reported on your tax return or provided by your employer or client. Report. Directors are not allowed to claim any credits. We revised your refund because: (a) You incorrectly added your total payments and credits, or (b) You made an error subtracting your payments and credits from total tax. You cannot claim Exemption credits on a group return. You must file your claim within three years of the due date of the tax return for the year you paid the excess SDI/VPDI. Perjury Statement. We adjusted your claim for State Disability Insurance (SDI) or Voluntary Plan Disability Insurance (VPDI). Any federal Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. You made an error when you transferred your itemized deductions to Schedule CA, line 29. We strive to provide a website that is easy to use and understand. The amount depends upon when it files Form 199 and it makes the payment (R&TC Section 23772). If you call us, have your entitys tax return, supporting documents, and the enclosed notice available during the call. We revised your Dependent Exemption Credit because you cannot claim yourself or your spouse as a dependent. Refer to the Form 3514 instructions for more information. We disallowed your Young Child Tax Credit because you had earned income during the taxable year and did not claim the Earned Income Tax Credit. Please review your subtotals on "Part-II" on your Schedule CA (540), California Adjustments - Residents form. You incorrectly calculated your CA Regular Tax Before Credits. If you have any issues or technical problems, contact that site for assistance. If you were unable to get a federal Individual Taxpayer Identification Number (ITIN) for a nonresident alien dependent due to the changes made by the federal Tax Cuts and Jobs Act of 2017, complete FTB Form 3568, Dependent Identification Number Requirement Exception. Any certification, license, permit or registration required for your business (taxicab, cosmetology, food service, You made an error when you transferred your Schedule P Alternative Minimum Tax to your tax return. Penalty code "B" doesn't mean anything when I search online. Payments. If the estate or trust distributed the related income, the estate or trust should prepare Form 592 and Form 592 B to distribute the credit to the beneficiaries who will report the taxable income and claim their share of the credit on their California income tax returns. We corrected multiple errors found on your tax return and processed it using the information you provided. We disallowed your Foster Youth Tax Credit because you did not qualify for the Earned Income Tax Credit. Please review the "Interest You Paid" section on your Schedule CA (540), California Adjustments - Residents form.