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Brenda Colburn Jemmott, CPA, Stockholder and Oakland Office Head
Brenda Colburn JemmottCPA / Partner / Oakland Office Head/ Co-Managing Director of Taxview bio

FTB Notice of Tax Return Change

Couple reading a notice of change from the Franchise Tax Board

1/6/2021

Don’t Fret if you receive a
Notice of Tax Return Change
from the Franchise Tax Board

RINA Alert --  January 5, 2021 | Volume 19, Issue 1 

Since the last weeks of December, the Franchise Tax Board (FTB) has been sending out Notices of Tax Return Change (NTRC) with balances due and Statements of Tax Due for the 2019 tax year.
 
The notices are being sent because the FTB’s computer system was not properly programmed for the COVID-caused 2019 tax deadline change from April 15, 2020 to July 15, 2020. The FTB’s system falsely flagged payments made from April 16-July 15 as “not timely”.
 
It appears that 100,000 of these notices have been sent. They indicate that 2019 overpayments have not been credited to 2020 as requested on the return.  The notice says that the overpayment was not applied.
 
The notices were sent out automatically before the accounts were manually corrected.To correct the problem, the FTB had to manually apply the payment amounts to the current tax year and transfer any excess to the next year per the taxpayer’s request.
 
If you receive one of these notices, there is no action needed because the accounts are now all correct. 
 
You can verify that your account has been adjusted on MyFTB.
 
Please reach out to your RINA professional if you have any questions or concerns.
 

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