You filed after the New Jobs Credit cutoff date. 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). Mail: Franchise Tax Board MS 151 Based on the information you provided, we disallowed your Earned Income Tax Credit because we could not verify your wages. You made an error when you calculated your overpaid tax. Renters Credit is not a refundable credit. (c) You made an error calculating or transferring the tax on Schedule G-1 or FTB 5870A, Tax on Accumulation Distribution of Trusts. Gather: Your completed Form 3514, Earned Income Tax Credit. return, along with: We revised your wages to match your Form W-2. copies from your federal income tax return (if applicable): We combined the returns and recomputed your tax, resulting in a reduced refund. 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 . Program 3.0 California Motion Picture and Television Production. PO Box 942857. You made an error when you totaled your Schedule CA, Column E income. Self-employed taxes. We cannot transfer to the California Department of Tax and Fee Administration the full amount of Use Tax reported on your income tax return because you do not have enough credit available. The California Secretary of States Office as SOS. . Exceptions - None. Fax: 916.845.9351 For a payment less than $1,250, the penalty is $25 or the payment amount, whichever is less (R&TC Section 19134). 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". We revised your Earned Income Tax Credit because you made an error calculating the credit amount. We revised the penalty amount because you did not provide a valid coverage or exemption code. Gather: Birth certificate(s) for your qualifying child(ren). penalty, write to: Franchise Tax Board. The maximum penalty is 25 percent. You made an error on your Schedule D when you entered your difference on Line 12a. We impose the Late Filing Penalty in addition to the Delinquent Penalty (R&TC Section 19172). We are revising your net operating loss (NOL) carryback amount that your corporation reported on its tax return since NOL carrybacks are not allowed for any NOL attributable to taxable years beginning after December 31, 2018 pursuant to California Revenue and Taxation Code Section 24416(d)(1). The FTB will generally consider an offer in compromise if you can prove that you have no way to pay your outstanding taxes, and when the amount offered is "the most the Franchise Tax Board can expect to collect within a reasonable period of time.". You made an error using the 2EZ Table to calculate your tax. We revised the subsidy amount because you do not qualify for a Premium Assistance Subsidy (PAS). Go to ftb.ca.gov and select "Access MyFTB Account" to verify your estimated payment amounts. We revised your filing status because of conflicting information you provided on your tax return. This may have affected your claimed and/or carryover amount. You made an error when you combined your Schedule CA, lines 26 and 27. 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. Upon certification by the Secretary of State pursuant to subdivision (a) of Section 2204 or subdivision (a) of Section 17563 of the Corporations Code, the Franchise Tax Board shall assess a penalty of two hundred fifty dollars (0). We disallowed your Earned Income Tax Credit/Young Child Tax Credit because you did not attach Form 3514, California Earned Income Tax Credit, or it was incomplete. We revised the subsidy amount because you made an error on Part II, lines 24-26, of Form 3849, Premium Assistance Subsidy. If we send you a demand to file your entitys 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. . 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. We disallowed the lesser of your Dependent Parent Credit or your Joint Custody Head of Household Credit because you cannot claim both credits. 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. For forms and publications, visit the Forms and Publications search tool. We processed your tax return using the standard deduction, which is greater than your itemized deductions. 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. We will not assess a delinquent penalty if you file your tax return by the extended due date. It is less than the gross profit calculated on Form 568. Another corporation owned 50 percent or less of its stock. We disallowed your Dependent Parent Credit because your filing status was not Married Filing Separately. We revised your claim for State Disability Insurance (SDI) or Voluntary Plan Disability Insurance (VPDI). Therefore, a business formed at the end of December will only be responsible for one $800 payment in April. We impose the penalty from the original tax return due date. Penalty code "B" doesn't mean anything when I search online. This notice outlines the effect of a state tax lien. You made an error when you transferred your Schedule CA Federal Adjusted Gross Income to your tax return. You made an error when you added up your Total Payments. Gather: Your tax return and all related tax documents. We disallowed your Earned Income Tax Credit/Young Child Tax Credit because you, or you and your spouse/RDP did not provide your Date of Birth (DOB). We reduced the special credit listed below to the maximum percentage of net tax allowed for the credit. Please review the "Taxes You Paid section on your Schedule CA (540), California Adjustments - Residents form. Forms, publications, and all applications, such as your MyFTB account, cannot be translated using this Google translation application tool. You made an error on your Schedule S when you transferred your California Adjusted Gross Income from your tax return. You made an error when you subtracted your Schedule CA, Column C Total Adjustments to Income from Total Income. Therefore, your entity may owe penalties and interest even if its tax return shows that a refund is due. You incorrectly calculated your Refund when you subtracted your Total Contribution from your Overpaid Tax. We calculate the penalty on the unpaid amount from the due date of the estimated tax installment to the following dates whichever is earlier (R&TC Section 19142): We impose a penalty when you fail to estimate and pay the annual fee by the 15th day of the 6th month of the tax year. Gather: Withholding documents (W-2, W-2C, 1099 forms) and final year-to-date pay stub(s). We disallowed your Dependent Exemption Credit(s) because you did not provide an identification number for your dependent(s). Gather: Social Security card for your qualifying children. We revised your State Disability Insurance (SDI) or Voluntary Plan Disability Insurance (VPDI) withholding to the maximum amount substantiated by your Forms W-2 or other wage documents. You can also search our site by starting from the home page . Are incorporated or organized in California. Activities that tend to trigger criminal fraud investigations include: Submitting false documents to the tax authorities Mixing personal and business expenses Please review the California Form FTB 3532, Head of Household Filing Status Instructions or FTB Publication 1540 for more information. If you have any questions related to the information contained in the translation, refer to the English version. We revised or disallowed your Earned Income Tax Credit because you did not substantiate your business activity and the wages claimed. PO Box 1468 We revised your Foster Youth Tax Credit because you incorrectly transferred the Credit Percentage from your tax return, to your Form 3514, California Earned Income Tax Credit. A: Per the California Revenue and Taxation Code Section 17014 (a) tax residency rules, you are considered a resident of the state if you are in California for other than a temporary or transitory purpose, or you are domiciled outside the state for a temporary or transitory purpose. For a complete listing of the FTBs official Spanish pages, visit La esta pagina en Espanol (Spanish home page). However, to avoid late payment penalties and interest, you must pay the tax due by the original tax return due date. Generally, interest accrues on unpaid liabilities from the original due date of the tax return until the date we receive full payment. 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. We reduced or disallowed your withholding because you incorrectly claimed State Disability Insurance (SDI) as state income tax withheld. Reasonably estimated its gross receipts, less returns and allowances reportable to California, to be $1 million or less. We revised your claim for State Disability Insurance (SDI) or Voluntary Plan Disability Insurance (VPDI). PO Box 1468 Get FTB 4058 at ftb.ca.gov or call us at 800.338.0505 (select Personal Income Tax), or mail us at FRANCHISE TAX BOARD, PO BOX 942840, SACRAMENTO CA 94240-0040. Please review your completed Form 3514, California Earned Income Tax Credit to confirm your entries. You made an error on your Schedule D-1 when you entered your difference on Line 21b. RTC Code 25114 - 25114. 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. Log in to your MyFTB account. ( Rev. The withholding claimed on your return has been revised to the amount that we could verify with the Employment Development Department (EDD). You made an error when you calculated your Adjusted Total Income or Loss. Attn: EFT Unit. Contact or submit copies to the Filing Compliance Bureau: Phone: 916.845.7088 You made an error when you calculated your Medical and Dental Expenses. Refer to the Form 3514 instructions for more information. CA Franchise Tax Board Letter : r/tax Hi all, I'm trying to find the reason behind this penalty online but I keep reaching a dead end. 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): We revised the subsidy amount because you made an error calculating your excess advance payment of Premium Assistance Subsidy (PAS). We revised the penalty amount because you do not qualify for a short-coveragegap exemption. Page number: We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. We revised the subsidy amount because the monthly Advance Payment of the Premium Assistance Subsidy (APAS) amount does not match the information provided to you on Form 3895, California Health Insurance Marketplace Statement. We revised the Exemption Credit and Special Credit because you are subject to alternative minimum tax. We disallowed your Earned Income Tax Credit/Young Child Tax Credit because you did not provide the qualifying childs relationship to you. Refer to the Form 3514 instructions for more information. All links were last tested and verified on Jan. 16, 2023. We disallowed your Child and Dependent Care Expenses Credit. Gather: W-2s, tax return, related tax documents and confirm your calculations on your Form 3514. We disallowed your Earned Income Tax Credit/Young Child Tax Credit because you or your spouse/registered domestic partner (RDP) did not provide a valid social security number or federal individual taxpayer identification number (ITIN). (b) You incorrectly calculated the deduction percentage. Please review your completed Form 3514 to confirm your entries. Fax: 916.845.9351 Taxpayers' Rights Advocate Review . We corrected multiple errors found on your tax return and processed it using the information you provided. Domestic partnerships that do not register with the Secretary of State are not limited partnerships. Gather: Copies of canceled checks or electronic payment confirmation. We disallowed your Head of Household filing status because the number of days indicated on your California Form FTB 3532, Head of Household Filing Status Schedule that your qualifying person lived with you, did not meet the minimum required days. The penalty is 20 percent of the understatement of tax. We applied your Renters Credit to reduce your total tax to $0.00. You cannot claim credit for Real Estate and Other Withholding unless you report the related income. We revised your Earned Income Tax Credit/Young Child Tax Credit because one or more qualifying children did not have a valid social security number or federal individual taxpayer identification number. 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. Gather: Proof of your earned income (W-2, W-2C, 1099 forms) and final year-to-date pay stub(s). You made an error when you transferred your Regular Tax Before Exemption Credits from your tax return to your Schedule P (540NR). We revised the subsidy amount because you made an error calculating your household income as a percentage of the federal poverty line. This could affect the percentage used to compute tax on your tax return. Gather: Completed California Form 3532, Head of Household Filing Status Schedule, then contact or send your documents to the Franchise Tax Board: We disallowed your Head of Household filing status because you can be claimed as a dependent by someone else. See any other code(s) on the notice for more information. We could not verify your withholding through your employer. We disallowed your Earned Income Tax Credit/Young Child Tax Credit because you did not provide the full name of the qualifying child. We revised the total tax on your tax return for one or more of the following reasons: (a) You calculated the ratio incorrectly. We allowed the estimate payments shown on your account. If a corporation making a water's-edge election under Revenue and Taxation Code section 25110 fails to furnish any information described in Revenue and Taxation Code section 25112, subdivision (b), within 60 days of a written request by an auditor or attorney of the Franchise Tax Board, such corporation shall pay a penalty of $1,000 for each taxable year with respect to which . We do not control the destination site and cannot accept any responsibility for its contents, links, or offers. Impacted by California's recent winter storms? You made an error when you calculated your Schedule CA Deduction Percentage. c) Married couples filing separately must divide the credit equally. Forms, publications, and all applications, such as your MyFTB account, cannot be translated using this Google translation application tool. For over 42 years, the firm has provided customized collection programs for its public-sector clientele. 19141. We disallowed the special credit listed below because your California Adjusted Gross Income exceeded the maximum allowed for your filing status. For more information, go to ftb.ca.gov and search for eft. We revised your Standard Deduction since you can be claimed as a dependent on another person's tax return. You incorrectly calculated your CA Regular Tax Before Credits. Fax: 916.845.9351 Gather: copies of your California income tax return. An estate or trust that has real estate or other withholding should only claim the credit if the estate or trust did not distribute the related income in the current year. Review FTB 3568 and identification document requirements. If you don't pay within 30 days after receiving this notice, the state will move forward and file the lien. Refer to the Form 3514 instructions for more information. If you disagree with our adjustments or you need clarification, contact us by phone, fax, or mail. The 2022 Form W-2 includes warrants/payments with issue dates of January 1, 2022 through December 31, 2022. We revised your Federal AGI to the amount reported on your federal return per information we received from the IRS. The amount we substantiated from Forms 592-B and 593, which your business entity attached to its tax return. Sometimes risking a lien is worth it to settle the debt for much less than you owe. Please review the California Form FTB 3532, Head of Household Filing Status Schedule Instructions or FTB Publication 1540 for more information. An organization controlled by a religious organization. Your organization files by the original due date, but pays after that date. We impose a penalty if your entitys financial institution does not honor a payment you make to us by check, money order, or electronic funds transfer. You made an error calculating your Schedule CA Itemized/Standard Deduction when you multiplied your deductions by the Deduction Percentage. We revised your Disability Access Credit to the correct amount. You cannot claim a Personal Exemption if someone can claim you as a dependent. You made an error when you subtracted your Schedule CA, Column D Total Adjustments to Income from Total Income. Register | What you need to register For a payment of $1,250 or more, the penalty is 2 percent of the payment amount.