Fillable Printable Ftb 7275 - Franchise Tax Board - State Of California
Fillable Printable Ftb 7275 - Franchise Tax Board - State Of California
Ftb 7275 - Franchise Tax Board - State Of California
FTB 7275 (REV 01-2016) PAGE 1
General Information
The Notice of Proposed Assessment (NPA) informs you that we
intend to assess additional tax and/or penalties. You have a right
to protest the NPA, which must be submitted within 60 days of
the NPA date, or submitted by the Protest By date. (R&TC section
19041) We will take no further action before the Protest By date of
the enclosed notice. You do not currently owe the amount shown
on the NPA. If you choose to protest, it may take several months to
resolve your account. If you wish to limit the accrual of interest on
the proposed assessment amount, you may make a payment even if
you protest the NPA.
Interest
Interest accrues on additional taxes from the original due date of the
tax return until the date we receive full payment. Interest accrues
on penalties from the effective date of the penalty until the date we
receive full payment. (R&TC Section 19101) To nd current and prior
interest rates, go to ftb.ca.gov and search for interest rates or call
the phone number on the enclosed notice.
Additional interest accrues from the NPA date (notice date) to
the date we receive your payment in full. However, we charge no
additional interest if we receive your payment in full within 15 days of
this notice date.
Agree and Make an NPA Payment
If you agree with the proposed assessment amount, you may pay
the additional tax, penalties, and interest on the notice as an NPA
Payment. Refer to the Payment Procedures section. Do not submit
Form 540X, Amended Individual Income Tax Return.
If a balance due exists after the proposed assessment amount
becomes a nal liability, we will send you a bill.
Disagree and Make a Tax Deposit
If you disagree with the proposed assessment amount, you may le
a protest. You may pay the amount shown on the notice as a Tax
Deposit to limit the accrual of interest without losing your right to
protest the assessment. Refer to the Payment Procedures section.
Also refer to California Form 3576, Pending Audit Tax Deposit
Voucher for Individuals. Go to ftb.ca.gov and search for 3576.
(R&TC Section 19041.5)
If the proposed assessment amount becomes a nal liability, we will
apply your Tax Deposit to satisfy the nal liability. If we withdraw or
reduce the proposed assessment, any remaining amount will be
held as a Tax Deposit. For additional information, go to ftb.ca.gov
and search for 3581 to nd FTB 3581, Tax Deposit Refund and
Transfer Request.
Existing Balance Due on Tax Year
If you choose to make a Tax Deposit payment, we will apply your
payment to satisfy any balance due on your account for the same
tax year and treat the remaining amount as a Tax Deposit for the
protested NPA.
No Tax Return Filed
If you wish to make a payment, but you did not le a tax return
for the tax year, pay online using Web Pay (choose the Notice of
Proposed Assessment payment type) or pay by mail with a copy of
the enclosed Notice of Proposed Assessment.
No Action
If you take no action by the Protest By date, then the proposed
assessment amount will become due and payable after the Protest
By date shown on the rst page of the notice. If you previously made
payment(s) on the proposed assessment amount, we will apply your
payment(s) to the liability and bill you for any remaining balance.
Protest Procedures
If you choose to protest our proposed assessment, you must
submit your protest by the Protest By date. Follow the online or
written protest ling instructions below. (R&TC Section 19041)
Filing a protest will not stop the accrual of interest.
Online Protest
1. Go to ftb.ca.gov and select Register or log in to your MyFTB.
2. From the options listed, select Account and then Proposed
Assessments. Select the NPA number for the proposed
assessment you want to protest and follow the online
protest instructions.
Written Protest
File your written protest by mail or fax by the Protest By date shown
on the rst page of the notice.
Your written protest must include your:
Name, address, and daytime phone number.
Your social security or taxpayer identication number.
Amounts and tax years you wish to protest.
Statement of facts.
Arguments, evidence, and documentation that substantiate your
position, including legal authorities.
Signature or your authorized representative’s signature.
If you wish to authorize someone to represent you regarding your
protest, see the Power of Attorney for Tax Matters section.
For proper handling of your protest, include a copy of the Notice of
Proposed Assessment.
Mail:
PROTEST SECTION MS F340
FRANCHISE TAX BOARD
PO BOX 1286
RANCHO CORDOVA CA 95741-1286
Fax: 916.364.2754
If you do not submit your protest by the Protest By date on your
notice, the assessment becomes nal and we bill you for the
proposed assessment, including penalties and any accrued interest.
(California R&TC Section 19042)
We will grant you a hearing if you request one in your protest. Your
authorized representative may represent you at the hearing. Once
we consider your protest and make a decision, we will send you
written notication.
Franchise Tax Board
State of California
FTB 7275
Personal Income Tax Notice of Proposed Assessment Information
In this document, we refer to the California Revenue and Taxation Code as R&TC.
FTB 7275 (REV 01-2016) PAGE 2
Payment Procedures
If you have a mandatory e-pay requirement, follow the online
payment instructions below. If you do not have a mandatory e-pay
requirement, you may pay your proposed assessment amount by
either method below.
Online
Go to ftb.ca.gov and search for web pay.
Select Web Pay for Individuals.
If you agree with the assessment amount, choose Notice of
Proposed Assessment as your payment type.
If you disagree with the assessment amount, choose Tax Deposit
as your payment type. If you have not led a tax return for the tax
year, choose Notice of Proposed Assessment as your
payment type.
Follow the online instructions.
Mail
Write your full name and account number on your payment.
Make check or money order payable to Franchise Tax Board.
If you agree, mail payment (avoid staples or tape) and a copy of
the Notice of Proposed Assessment to the address on the notice.
If you disagree and led a tax return for the tax year, refer to
California Form 3576, Pending Audit Tax Deposit Voucher for
Individuals. Go to ftb.ca.gov and search for 3576.
If you disagree and have not led a tax return for the tax year,
mail your payment and a copy of the Notice of Proposed
Assessment to the address on the notice.
Mandatory e-Pay Requirement
Effective January 1, 2009, if your estimated tax or extension payment
exceeds $20,000, or your tax liability exceeds $80,000 for any tax
year that begins on or after January 1, 2009, you are required to
remit all payments electronically. Once you meet the threshold
amount and mandatory e-pay requirement for that payment, all
subsequent payments regardless of type, amount, or tax year must
be paid electronically. Failure to comply with this requirement will
result in a penalty of 1 percent of the amount paid, unless your failure
to pay electronically was for reasonable cause and not willful neglect.
(R&TC Section 19011.5)
If you are required to make payments electronically and you wish
to make a tax deposit, you must also remit the tax deposit payment
electronically. Do not mail the tax deposit voucher. If you are
required to pay electronically, you may pay your liability online. Go to
ftb.ca.gov and search for web pay.
You may request a written waiver of the mandatory e-pay
requirement if you feel your tax payment or total tax liability does not
accurately represent your current tax liability. Go to ftb.ca.gov and
search for 4107.
Power of Attorney for Tax Matters
If you wish to authorize someone to represent you on your state
income tax matters (including your protest), you may le a Power of
Attorney (POA) declaration with the California Franchise Tax Board
(FTB). We recommend that you and your selected representative
register with MyFTB and electronically le a POA declaration with
FTB. For more information on how to register with MyFTB, go to
ftb.ca.gov and search for poa information.
If you le your POA declaration by paper, indicate how you have an
applicable exception to submitting online by indicating on FTB 3520,
Power of Attorney Declaration. If you submit a declaration by paper
without an exception, we will process it. However, our processing
time frames for paper declarations will take longer than declarations
submitted online. For more information on the paper exceptions,
go to ftb.ca.gov and search for poa information or call us at
800.852.5711.
In order to be timely, a protest must be submitted to FTB by the
Protest By date on the enclosed notice, so plan accordingly. POA
representatives who have already received conrmation that FTB
has processed the online POA declaration may use MyFTB to le a
protest online. Otherwise, POA representatives may submit a protest
in writing along with a copy of the POA declaration.
Claim for Refund – Time Limit
There is a time limit to request a refund from us. Generally, you can
le a claim for refund until the later of four years from the due date
of your tax return, or one year from the date of overpayment. (R&TC
Section 19306) You may only request a refund when you have paid
the full amount due. For claims led on or after January 1, 2002,
even if you have not yet paid the amount due in full, you can le an
informal claim for refund within the time frames indicated above. An
informal claim for refund will protect your right to le an appeal with
the California State Board of Equalization or to le suit against us in
court until you have paid the total amount due. However, amounts
paid more than seven years before the date the total amount due is
fully paid cannot be refunded. (R&TC Section 19322.1)
Settlement Program Option
The purpose of the settlement program is to negotiate settlements
of civil tax matters in dispute consistent with a reasonable evaluation
of the costs and risks associated with the litigation of these matters.
(R&TC Section 19442) A civil tax matter in dispute includes a
protest of a Notice of Proposed Assessment. If you wish to
request participation in the settlement program, you must rst
follow the Protest Procedures to le a protest of the Notice of
Proposed Assessment.
Participation in the settlement program is at our discretion. To decide
whether to accept your request to participate in the settlement
program, we do not consider your ability or inability to pay. We only
consider the costs and risks of litigation associated with the issues
in dispute.
For more information on how to request participation in the
settlement program, see FTB Notice 2007-2, Settlement of Civil Tax
Matter Disputes, at ftb.ca.gov.
Penalties
Accuracy and Fraud Penalty
Under certain circumstances, if you understated your tax liability, we
may impose one of the following penalties:
An accuracy-related penalty equal to 20 percent of the related
underpayment.
A fraud penalty equal to 75 percent of the related underpayment.
(R&TC Section 19164)
40 Percent Accuracy Penalty
For tax years that were eligible for tax amnesty (i.e., beginning before
January 1, 2003), if you understated your liability, we may impose
an accuracy-related penalty equal to 40 percent of the related
underpayment. (R&TC Section 19164)
Demand to File Penalty
If we send you a demand to le your income tax return or to
provide us with information, and you do not comply, we impose a
penalty of 25 percent of the tax on our assessment before applying
any payments or credits. Therefore, you may owe penalties
and interest even if your tax return shows that a refund is
due. (R&TC Section 19133) The demand to le penalty is in
addition to the 25 percent late ling penalty imposed pursuant to
R&TC Section 19131.
FTB 7275 (REV 01-2016) PAGE 3
Late Filing Penalty
If you do not le your tax return by the extended 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 tax return due date, for
each month or part of a month the tax return is late. The maximum
penalty is 25 percent. We impose the penalty from the original due
date of the tax return. For a tax return that shows a balance due, the
minimum penalty for ling a tax return more than 60 days late is $100
($135 for tax years beginning on or after January 1, 2010) or 100
percent of the tax due after applying timely payments and credits,
whichever is less. (R&TC Section 19131)
Post-Amnesty Penalty
We impose a penalty when you owe new or additional tax on a
tax year that was eligible for tax amnesty (i.e., beginning before
January 1, 2003). The penalty is equal to 50 percent of the interest
that accrued on the tax assessment from the original due date
of the tax to March 31, 2005. The amount of the penalty shown
on the NPA is an estimate and cannot be protested. The penalty
will be recomputed and assessed if and when the proposed
assessment becomes a nal liability. You can le a claim for
refund of amounts paid to satisfy this penalty only on the grounds
that we did not properly compute the amount of the penalty.
(R&TC Section 19777.5(a)(2))
Rights as a Taxpayer
One of our goals at the Franchise Tax Board is to make certain we
protect your rights. We want you to have the highest condence
in the integrity, efciency, and fairness of our state tax system.
FTB Pub. 4058, California Taxpayers’ Bill of Rights, includes
information on state taxpayers’ rights. You can order the California
Taxpayers’ Bill of Rights by:
Website: ftb.ca.gov and search Bill of Rights
Telephone: 800.338.0505 (Select Personal Income Tax Forms)
Mail: FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0040
In keeping with the California Taxpayers’ Bill of Rights, taxpayers who
have been unable to resolve their problems with us through regular
channels may contact our Taxpayers’ Rights Advocate. Contacting
the Taxpayers’ Rights Advocate, however, is not a protest and does
not extend the period of time for ling one. To le a protest, follow the
instructions in the Protest Procedures section.
Unless you received a jeopardy assessment, you have the right to
an independent administrative review before we levy your income or
assets if you submit your written request within 30 days of the date of
Final Notice Before Levy or within 30 days of the date of the Notice of
State Tax Lien.
You may contact Executive and Advocate Services for additional
information or to submit your request for review.
To request an independent administrative review, call: 800.883.5910,
fax: 916.843.6022, or mail: Executive and Advocate Services
MS A381, PO Box 157, Rancho Cordova CA 95741-0157.
Franchise Tax Board Privacy Notice
For more information about your privacy rights, how we may use your
information, and consequences if you do not provide information we
request, go to ftb.ca.gov and search for privacy notice. To request
this notice by mail, call 800.338.0505 and enter form code 948
when instructed.
Connect With Us/Conéctese Con Nosotros
Web: ftb.ca.gov Phone/Tel: 800.852.5711 |
7 a.m. to 5 p.m. weekdays, except state holidays/7 a.m. a
5 p.m. de lunes a viernes, excepto días feriados
916.845.6500 |
from outside the United States/fuera de los Estados Unidos
TTY/TDD: 800.822.6268 |
f or persons with hearing or speech impairments/para personas
con discapacidades auditivas o del habla
