Business entities whose quarterly estimated tax payment or extension payment exceeds $20,000 or whose total tax liability exceeds $80,000 for any income year, are required to make all future payments by electronic funds transfer (EFT). The penalty is 5 percent of the unpaid tax, plus 0.5 percent of the unpaid tax for each month or part of a month it remains unpaid, not to exceed 40 months. $100 per report if the failure is due to negligence or intentional disregard. Your corporation must have filed by the extended due date. It is less than the gross profit calculated on Form 568. We revised the subsidy amount because you made an error calculating your federal poverty line. Please mail a copy of this letter with your revised FTB 3506, Child and Dependent Care Expenses Credit to FRANCHISE TAX BOARD, FILING COMPLIANCE BUREAU MS F151, PO BOX 1468, SACRAMENTO, CA 958121468. The tax year does not fall within the designated period to claim the disaster or terrorism loss. You made an error when you totaled your Schedule CA, Column D Adjustments to Income. You can also search our site by starting from the home page . We reduced your Child and Dependent Care Expenses Credit. You incorrectly calculated your income reportable to California. Only credits directly attributable to the business entity's activities can be claimed on a group return. . You did not file a timely claim. We revised your Earned Income Tax Credit/Young Child Tax Credit because you made an error when you calculated your earned income. We revised or disallowed your New Employment Credit because you did not have a net increase in full-time employees. Gather: Withholding documents (W-2, W-2C, 1099 forms) and final year-to-date pay stubs. We disallowed your Earned Income Tax Credit/Young Child Tax Credit because your filing status was Married/RDP Filing Separately. We revised the amount of tax credits to match the amount you claimed on your original tax return. You can order the California Taxpayers' Bill of Rights by: Mail: FRANCHISE TAX BOARD PO BOX 942840 SACRAMENTO CA 94240-0040 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. We imposed penalties, fees, and/or interest on the tax year, which reduced your refund amount. You made an error when you calculated your Schedule CA Deduction Percentage. We revised the total tax your corporation reported. You do not need to do anything extra before contacting us. You need california franchise tax. Phone: 916.845.7088 Gather: Form 540, California Resident Income Tax Return, and Form 3853. TurboTax Live tax expert products. We revised your Nonresident or Part-Year Resident Earned Income Tax Credit because you made an error calculating the credit amount. We disallowed your Child and Dependent Care Expenses Credit because the social security numbers for your qualifying persons were: We revised your California Child and Dependent Care Expenses Credit because the amount of federal Child and Dependent Care Expenses Credit you entered on your return exceeded the maximum allowable amount based on the number of qualifying persons you entered on your return. We disallowed your Foster Youth Tax Credit because you did not qualify for the Earned Income Tax Credit. You made an error when you subtracted your Schedule CA, Column E Total Adjustments to Income from Total Income. You made an error when you combined your Schedule CA, Lines 40 and 41. Please review the California Form FTB 3532, Head of Household Filing Status Instructions. return, along with: Consult with a translator for official business. Notice of State Tax Lien in California. (R&TC Section 23772). We combined the returns and recomputed your tax, resulting in a reduced refund. (California R&TC Sections 19209, 19233, 19234, 19235, 19254, and 19376; Internal Revenue Code Section 6402(e); and California Government Code Sections 7174, 16583.1, 27361, 27361.3, and 27361.4). For returns with the original due dates on or after January 1, 2011, the penalty is $18 per shareholder, for each month or fraction of the month the return is late (or incomplete), to a maximum of 12 months. We disallowed your Young Child Tax Credit because your qualifying child or qualifying children listed on your Form 3514, California Earned Income Tax Credit, do not meet the age requirements. document.write(new Date().getFullYear()) California Franchise Tax Board. We revised your Earned Income Tax Credit/Young Child Tax Credit because the social security number or federal individual taxpayer identification number of one or more qualifying children was allowed on another tax return. canceled check, transaction number, etc.) You made an error calculating your Tax Due. 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. When current year AGI exceeds $150,000 ($75,000 if married filing separately) but is less than $1,000,000 ($500,000 if married filing separately), they must pay in 110% of the prior year's amount to avoid the penalty. You cannot claim a Personal Exemption if someone can claim you as a dependent. We revised your Young Child Tax Credit because you incorrectly transferred the credit percentage from your tax return to your Form 3514, California Earned Income Tax Credit. 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. The withholding claimed on your return has been revised to the amount that we could verify with the Employment Development Department (EDD). We revised your State Disability Insurance (SDI) or Voluntary Plan Disability Insurance (VPDI) withholding to the maximum allowable amount substantiated by your Forms W-2 or other wage documents. For each source of self-employment that you and your spouse/RDP (if filing jointly) reported, provide the following from your federal income tax return (if applicable): (R&TC Section 19131), If you do not file your limited liability companys income tax return by the due date, we impose a penalty. You made an error on your Schedule D when you combined your Total Gains and Total Losses on Line 8. This Google translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only. Gather dependent's social security card or IRS ITIN documentation. Send any written correspondence to: If your corporation carries tax credits over to a subsequent year, then revise that amount on the subsequent year accordingly. Schedule SE, Self-Employment Tax We disallowed your Dependent Exemption Credit(s) because you did not provide a valid identification number for your dependent(s). You incorrectly calculated your Total Tax when you subtracted your Nonrefundable Renter's Credit from your CA Regular Tax Before Credits. This Google translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only. California Revenue and Taxation Code as R&TC. You did not file a timely claim. This may have affected your claimed and/or carryover amount. We revised your contribution to the California Seniors Special Fund for one of the following reasons: (a) The contribution you designated was more than the amount allowed for your senior exemption. 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". 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. Gather: Proof of length qualifying child(ren) resided with you in California. Review: Your exemption credits on your return. You dont need to contact us. If you chose more than one contribution fund, we divided the amount among the funds. You filed multiple tax returns for the same tax year. The Form W-2 contains all wages and tax information for an employee regardless of the . (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. Cal. Items per page: One of the qualifying persons on FTB 3506, attached to your return, was 13 years old or older. We disallowed your Child and Dependent Care Expenses Credit because the full name of the qualifying person was not provided. For additional information about penalties and fees, refer to R&TC Part 10.2, Division 2, Chapter 4, Article 7 (R&TC Section 19131 et seq.). PO Box 942879. We reduced your withholding because the withholding credits on the form W-2 were from a state other than California. Similar to the failure to file penalty discussed above, the failure to timely pay penalty cannot exceed 25% of the total unpaid tax. 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. We revised your Young Child Tax Credit because you incorrectly transferred the credit percentage from your tax return, to your Form 3514, California Earned Income Tax Credit. 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 Match the Paragraph Codes from the enclosed notice with the Paragraph Code Explanations on this insert. PO Box 1468 The penalty is 50 percent of the interest that accrued on the balance due from the original due date of the tax to March 31, 2005. We disallowed your Head of Household filing status because in Part I of California Form FTB 3532, Head of Household Filing Status Schedule, you indicated you are legally married and you claimed someone other than your birth child, stepchild, adopted child, or eligible foster child as your qualifying person. Late payment of tax penalty (underpayment and monthly penalty): Individuals and businesses Estimated tax penalty: Individuals and businesses Bad check penalty (dishonored payment penalty): Individuals and businesses Mandatory e-Pay penalty: Individuals and businesses Penalty for Underpayment of Estimated LLC Fee We disallowed your Head of Household filing status because in Part III of California Form FTB 3532, Head of Household Filing Status Schedule, you did not indicate the number of days your qualifying person lived with you. Please review your subtotals on "Part-II" on your Schedule CA (540), California Adjustments - Residents form. Gather: Your California 5402EZ tax return. The California Franchise Tax Board (FTB) has many of the same weapons at its disposal as the IRS when collecting delinquent tax debt, and also has the ability to use information received from the IRS to assess additional tax against you.If the IRS audits your tax return, and the audit results in an increase in tax, the FTB will most likely use this information to increase your state income tax . We disallowed your Head of Household filing status based on the information provided on Part II, on your California Form FTB 3532, Head of Household Filing Status Schedule. We revised your balance due because: (a) You incorrectly added your total payments and credits, or (b) You made an error subtracting your total payments or credits from total tax. canceled check, transaction number, etc.) For a complete listing of the FTBs official Spanish pages, visit La esta pagina en Espanol (Spanish home page). The penalty is 10 percent of the underpaid fee. Your Schedule CA subtraction of Educator Expenses cannot be less than the federal amount. Do not include Social Security numbers or any personal or confidential information. We revised your Child and Dependent Care Expenses Credit because care provided outside of California does not qualify. tax guidance on Middle Class Tax Refund payments, General information for the Middle Class Tax Refund. You made an error when you calculated your Gifts to Charity. You made an error when you calculated your Tax Liability. They may also include fees to recover the cost of seizure and sale of property. We disallowed your Head of Household filing status because you did not attach California Form FTB 3532, Head of Household Filing Status Schedule. We revised or disallowed your Joint Custody Head of Household Credit for one of the following reasons: (a) Your filing status was not single or married filing separately. This Google translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only. We revised your subsidy amount because you made an error calculating your excess advance Premium Assistance Subsidy (PAS) repayment amount. We denied your coverage exemption because you had a gap in health coverage of more than three consecutive months. We disallowed your real estate or other withholding. We disallowed your Dependent Exemption(s) because the dependents identification number has been used on another return. We impose a penalty when you owe new or additional tax for a year that was eligible for tax amnesty (i.e., beginning before January 1, 2003). Your organization files and pays by the original due date. We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. Another corporation owned 50 percent or less of its stock. You made an error when you calculated your Total Itemized Deductions. You receive this notice when we correct one or more mistakes on your tax return. (R&TC Section 19138). Please review your completed Form 3514 to confirm your entries. To claim the credit you must have earned income. We revised or disallowed your special credits. Gather: Your Form 3514, Earned Income Tax Credit and tax return. You did not file your original tax return timely. 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. In addition, you must provide copies of the following supporting documentation to verify self-employment: We based our adjustment on information provided on your tax return, its attachments, and information provided to us by other tax agencies and your employer. You made an error when you transferred your Schedule CA Itemized /Standard Deduction from Line 44 to 46. We reduced the special credit listed below to the maximum percentage of Taxable Income allowed for the credit. We revised the subsidy amount because you made an error calculating your monthly maximum Premium Assistance Subsidy (PAS) amount. Penalty code "B" doesn't mean anything when I search online. These pages do not include the Google translation application. You made an error on your Schedule S when you entered your California Tax Liability (without other state tax credit). Forms, publications, and all applications, such as your MyFTB account, cannot be translated using this Google translation application tool. You cannot claim more Blind Exemptions than Personal Exemptions. You made an error on your Schedule S when you transferred your California Adjusted Gross Income from your tax return. We denied your coverage exemption because you are a citizen, national of the United States (U.S.), or lawfully present in the U.S. See Government Code Section 100705(c)(4). Please review your completed Form 3514, California Earned Income Tax Credit and your California Form 540 or 540 NR to confirm your entries and calculations are correct. These may include filing enforcement, collection, lien, or Federal Treasury Offset Program (FTOP) fees. We revised your Dependent Parent Credit to the correct amount. You incorrectly calculated your CA Regular Tax Before Credits. Rev. Review the site's security and confidentiality statements before using the site. We based the amount of withholding allowed on your Form W 2 or CA Schedule W-2, Forms 1099, withholding documents, or from information received from other tax agencies or your employers. FRANCHISE TAX BOARD. We revised your Earned Income Tax Credit because one or more qualifying children exceed the age limit. electronic funds transfer [EFT] penalty) Return Analysis Unit, MIC:35 . You made an error when you totaled your Schedule CA, Column B income. Any federal Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Phone: 916.845.7088, Gather: Proof of your earned income (W-2, W-2C, 1099 forms) and final year-to-date pay stub(s). contractor, vendor, etc.) Contact the entity that issued the schedule K-1. Register | What you need to register Gather: California 540 tax return Review: tax return details, schedules, and payments on return. You made an error when you calculated your overpaid tax. This law applies to 2008 and 2009 tax years (R&TC Section 24416.9). We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. Gather: Copies of canceled checks or electronic payment confirmation. How can I avoid $800 franchise tax? We disallowed your Head of Household filing status because Part II of California Form FTB 3532, Head of Household Filing Status Schedule was either incomplete or blank.