Dealing with the Franchise Tax Board (FTB) can sometimes feel daunting, especially if you believe a tax assessment against you is incorrect. Fortunately, you have the right to protest. This article provides a comprehensive guide, including a Sample Protest Letter to Franchise Tax Board, to help you navigate this process and effectively communicate your concerns.
Understanding Your Protest Options and the Sample Protest Letter to Franchise Tax Board
When you receive a notice from the FTB that you disagree with, it's crucial to understand your options. The most direct way to challenge an assessment is by submitting a formal protest. A well-crafted Sample Protest Letter to Franchise Tax Board is your primary tool for this. The importance of a clear, concise, and well-documented protest cannot be overstated. It serves as your official record and the basis for the FTB's review of your case.
Your protest letter should outline precisely why you disagree with the FTB's assessment. This could involve mathematical errors, incorrect information, misunderstanding of tax laws, or overlooked deductions. To ensure your protest is effective, consider the following components:
- Your full name and address
- The notice number and date
- The tax year(s) in question
- A clear statement of your disagreement
- Specific reasons for your disagreement
- Supporting documentation (receipts, statements, etc.)
- Your desired resolution
Here’s a look at what essential elements your Sample Protest Letter to Franchise Tax Board should contain:
- Identification: Clearly state who you are and what notice you are protesting.
- Explanation of Disagreement: Detail the specific points of contention.
- Supporting Evidence: Attach any documents that back up your claims.
- Requested Action: State what you want the FTB to do (e.g., reduce the assessment, remove penalties).
| Item | Description |
|---|---|
| Notice Number | Located on the FTB notice |
| Tax Year(s) | The period the assessment pertains to |
| Amount Disputed | The specific portion of the assessment you are challenging |
Sample Protest Letter to Franchise Tax Board for Disputed Income
[Your Full Name]
[Your Street Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Disputed Income
Dear Franchise Tax Board,
I am writing to formally protest Notice Number [Notice Number], dated [Date of Notice], which assesses additional income tax for the tax year [Tax Year]. I disagree with the determination that I had additional income of [Amount of Disputed Income] from [Source of Income, if known].
My records indicate that the income reported for this period was accurate. Specifically, the income you have identified as additional was either already reported, is not taxable, or relates to [brief explanation of why it's disputed]. I have attached supporting documentation, including [list of attached documents, e.g., bank statements, 1099 forms, tax preparation worksheets], which clearly demonstrate the correct income for the tax year in question.
I request that you review my protest and the enclosed documentation. I ask that the assessed additional income be removed, and the tax liability be adjusted accordingly. Please remove any associated penalties and interest that may have been calculated based on this disputed income.
Thank you for your time and consideration of this matter. I look forward to your prompt response.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Protest Letter to Franchise Tax Board for Incorrect Calculation
[Your Full Name]
[Your Street Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Incorrect Calculation
Dear Franchise Tax Board,
I am writing to protest Notice Number [Notice Number], issued on [Date of Notice], concerning my tax liability for the tax year [Tax Year]. I believe there has been an error in the calculation of my tax, resulting in an incorrect assessment of [Amount of Disputed Assessment].
Upon reviewing the notice and my original tax return, I have identified a discrepancy in the way [specific item, e.g., deductions, credits, tax bracket] was calculated. My records show that [explain the error in calculation, e.g., "the deduction for medical expenses was misapplied," or "the tax rate used does not align with the reported adjusted gross income"]. I have enclosed copies of [list of supporting documents, e.g., Schedule A, tax return transcript, relevant forms] to support my claim that the calculation is erroneous.
I kindly request that you re-evaluate the tax assessment based on the correct calculation of [specific item]. I am seeking a revised tax liability that accurately reflects my tax obligations for the year [Tax Year].
Thank you for your attention to this matter. I await your correction of this calculation.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Protest Letter to Franchise Tax Board Regarding Penalties and Interest
[Your Full Name]
[Your Street Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Penalties and Interest
Dear Franchise Tax Board,
This letter is a formal protest of Notice Number [Notice Number], dated [Date of Notice], which includes penalties and interest related to the tax year [Tax Year]. While I acknowledge the underlying tax liability, I dispute the assessment of penalties and interest in the amount of [Amount of Disputed Penalties and Interest].
I believe these penalties and interest should be waived or reduced due to [explain the reason for waiver/reduction, e.g., "reasonable cause," "undue hardship," "first-time abatement," "error on the part of the FTB," "a significant illness"]. I experienced [describe the circumstances, e.g., "a severe medical condition that prevented me from timely filing and payment," or "unforeseen financial difficulties that made timely payment impossible"]. I have attached documentation such as [list of supporting documents, e.g., doctor's notes, bankruptcy filings, proof of financial hardship] to substantiate my situation.
I respectfully request that the penalties and interest assessed on my account for tax year [Tax Year] be waived or significantly reduced due to these extenuating circumstances.
Thank you for your understanding and favorable consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Protest Letter to Franchise Tax Board for Unreported Information
[Your Full Name]
[Your Street Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Unreported Information Correction
Dear Franchise Tax Board,
I am writing to protest Notice Number [Notice Number], received on [Date of Notice], concerning unreported information for the tax year [Tax Year]. I understand the notice indicates [briefly describe the unreported information according to the notice]. However, I believe this information is incorrect or was reported through other means.
The information you are referencing was indeed [explain the situation, e.g., "reported on a separate form that was filed," or "related to income that was not subject to California tax due to residency," or "an error by a third party that has since been corrected"]. I have enclosed copies of [list of supporting documents, e.g., "confirmation of a separate filing," "proof of non-residency," "corrected 1099 form"] to clarify this matter and demonstrate that the information was either already provided or is not applicable.
I request that you amend your records based on the enclosed evidence and withdraw the assessment related to this unreported information. My intention is always to comply with tax laws, and I believe this issue can be resolved with the provided documentation.
Thank you for reviewing my protest.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Protest Letter to Franchise Tax Board for Erroneous Assessment of a Business
[Your Business Name]
[Your Business Address]
[Your Business City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Erroneous Business Assessment
Dear Franchise Tax Board,
This letter serves as a formal protest against Notice Number [Notice Number], dated [Date of Notice], which concerns an erroneous assessment against my business, [Your Business Name], for the tax year [Tax Year]. The notice claims [briefly describe the business assessment, e.g., "additional franchise tax," or "failure to file"].
I strongly dispute this assessment. [Your Business Name] [explain why the assessment is erroneous, e.g., "is not subject to franchise tax as it is a sole proprietorship with no employees and did not meet the filing threshold," or "filed its return on [Date of Filing] and the payment was made on [Date of Payment]."] I have attached copies of our filed tax return for [Tax Year], proof of payment, and any relevant business formation documents to demonstrate our compliance and the error in your assessment.
I request that you cancel this erroneous assessment and adjust your records accordingly. Please confirm receipt of this protest and provide an update on your review.
Thank you for your prompt attention to this business matter.
Sincerely,
[Your Signature]
[Your Typed Name]
[Your Title, e.g., Owner, President]
Sample Protest Letter to Franchise Tax Board for Overlooked Deductions
[Your Full Name]
[Your Street Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Overlooked Deductions
Dear Franchise Tax Board,
I am writing to protest Notice Number [Notice Number], received on [Date of Notice], which asserts an additional tax liability for the tax year [Tax Year]. I believe this assessment is incorrect because several valid deductions were overlooked or not properly accounted for.
Specifically, I was entitled to deductions for [list the overlooked deductions, e.g., "certain business expenses," "medical expenses not previously claimed," "student loan interest"]. These deductions were either mistakenly omitted from my original return or were not recognized in your assessment. I have compiled and attached supporting documentation, including [list of supporting documents, e.g., "receipts for business expenses," "medical bills," "Form 1098-E for student loan interest"], which validates these deductions.
I request that you review my original return and the enclosed documentation to re-evaluate my tax liability. I seek an adjustment to my tax assessment based on the inclusion of these overlooked deductions.
Thank you for your time and careful consideration of this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Protest Letter to Franchise Tax Board for Identity Theft Concerns
[Your Full Name]
[Your Street Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Potential Identity Theft
Dear Franchise Tax Board,
I am writing to formally protest Notice Number [Notice Number], dated [Date of Notice], concerning the tax year [Tax Year]. I believe this notice may be related to identity theft and that the tax liability indicated does not belong to me.
I have reason to believe that my Social Security number or other personal information may have been compromised. I have not filed a tax return for the year [Tax Year] and the information presented in your notice is not mine. I have already taken steps to protect myself, including [list steps taken, e.g., "filing a police report," "contacting the credit bureaus," "placing a fraud alert on my credit"]. I have attached copies of [list of supporting documents, e.g., "police report confirmation," "FTC identity theft affidavit"] for your reference.
I request that you investigate this matter thoroughly. Please place a hold on any actions related to this notice and confirm that my identity has not been used to file a fraudulent return. I am available to provide any further information or assistance needed to resolve this.
Thank you for your urgent attention to this serious issue.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Protest Letter to Franchise Tax Board for Disputed Credits
[Your Full Name]
[Your Street Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Disputed Credits
Dear Franchise Tax Board,
I am writing to protest Notice Number [Notice Number], received on [Date of Notice], concerning my tax liability for the tax year [Tax Year]. I disagree with the assessment, as it does not appear to account for all the tax credits I am entitled to.
My records indicate that I qualify for certain tax credits, including [list the disputed credits, e.g., "the Child and Dependent Care Credit," "the Earned Income Tax Credit," "a credit for energy-efficient home improvements"]. I have attached the necessary documentation to support my eligibility for these credits, such as [list of supporting documents, e.g., "Form W-2," "receipts for qualifying expenses," "Form 5695"]. The current assessment does not reflect the reduction in tax liability these credits would provide.
I request that you review my protest and the enclosed documentation to properly apply the tax credits to which I am entitled. I believe that with the correct application of these credits, my tax liability will be significantly reduced.
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample Protest Letter to Franchise Tax Board for Partnership or S-Corporation Issues
[Your Name/Business Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Franchise Tax Board
[FTB Department Address - if available, otherwise general address]
[FTB City, State, Zip Code]
Subject: Protest of Notice [Notice Number] - Tax Year [Tax Year] - Partnership/S-Corporation Assessment
Dear Franchise Tax Board,
This letter is a formal protest of Notice Number [Notice Number], dated [Date of Notice], concerning [Your Partnership/S-Corporation Name] for the tax year [Tax Year]. The notice pertains to [briefly describe the issue, e.g., "an adjustment to income," "a disallowed deduction," "failure to report distributions"].
As a partner/shareholder in this entity, I believe the assessment is incorrect due to [explain the specific issue, e.g., "an error in the allocation of income among partners," or "a misunderstanding of the nature of certain distributions," or "an omission of a legitimate business expense"]. We have enclosed a copy of the partnership/S-corporation return (Form [Form Number]), along with supporting documentation, including [list of supporting documents, e.g., "partner capital accounts," "schedule of distributions," "invoices for expenses"]. This documentation clarifies the correct reporting and tax treatment.
I request that you review this protest and the provided documentation. I am seeking a revised assessment that accurately reflects the tax treatment of the partnership/S-corporation for the tax year [Tax Year].
Thank you for your prompt attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
[Your Title, e.g., Managing Partner, President]
Submitting a Sample Protest Letter to Franchise Tax Board is a vital step when you disagree with a tax assessment. By clearly stating your case, providing thorough documentation, and following the FTB's guidelines, you significantly increase your chances of a favorable outcome. Remember to keep copies of all correspondence and supporting documents for your records. This guide and the provided samples aim to empower you to navigate this process with confidence.