(b) You did not correctly compute the tax amount on your return. We revised the total tax your corporation reported. c) Married couples filing separately must divide the credit equally. You made an error on your Schedule S when you calculated Line 11. Do not include Social Security numbers or any personal or confidential information. Contact the entity that issued the schedule K-1. We applied your Renters Credit to reduce your total tax to $0.00. tax guidance on Middle Class Tax Refund payments, General information for the Middle Class Tax Refund. Franchise Tax Board in the California Code of Regulations; Revenue and Tax Code This page was last edited on 24 November 2022, at 13:58 (UTC). We disallowed your Dependent Parent Credit because of one of the following reasons: (a) You claimed the Joint Custody Head of Household Credit (you cannot claim both credits). Qualify as many of ftb penalty code b total itemized deductions were not attach the correct amount due Processing and not to ftb penalty and c income when you. We revised the subsidy amount because you made an error calculating your excess advance payment of Premium Assistance Subsidy (PAS). California and Out-of-State Taxpayers: Amnesty Penalties Questioned Imagine receiving a letter from your bank stating your account will be levied in a matter of days because the California Franchise Tax Board (FTB) has determined you have a tax liability dating back 19 years. Our adjustments may have affected the application of credits with carryover provisions. We impose a penalty when you have a past-due tax liability for a year that was eligible for tax amnesty(i.e., beginning before January 1, 2003), but you did not resolve your tax obligation. On subsequent required tax returns, the tax cannot be less than the minimum franchise tax. Other penalties for returned checks, understatement, negligence and fraud may also add to the overall total owed . We disallowed your Earned Income Tax Credit/Young Child Tax Credit because you did not provide the Date of Birth (DOB) of the qualifying child. For a payment of $1,250 or more, the penalty is 2 percent of the payment amount. Refer to the Form 3514 instructions for more information. We revised the subsidy amount because you made an error calculating your monthly maximum Premium Assistance Subsidy (PAS) amount. You made an error when you transferred your Regular Tax Before Credits from your tax return to your Schedule P. You made an error calculating your excess tax which may be offset by credits when you transferred net tax from your tax return to your Schedule P. You made an error calculating your excess tax which may be offset by credits when you transferred your Schedule P Tentative Minimum Tax from Side I to Side II. Gather: Your California 5402EZ tax return. We revised the subsidy amount because the annual Second Lowest Cost Silver Plan (SLCSP) premium does not match the information provided to you on Form 3895, California Health Insurance Marketplace Statement. Another corporation owned 50 percent or less of its stock. The undersigned certify that, as of July 1, 2021 the internet website of the Franchise Tax Board is designed, developed and maintained to be in compliance with California Government Code Sections 7405 and 11135, and the Web Content Accessibility Guidelines 2.1, or a subsequent version, as of the date of certification, published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success criteria. You cannot claim this credit when your qualifying person is 13 years or older unless they are disabled. Taxpayer for failing to make a small business report. d) You did not claim the credit on a timely filed original tax return. Schedule C, Profit or Loss from Business The maximum penalty is 25 percent of the unpaid tax (R&TC Section 19132). You made an error when you transferred your Schedule CA Federal Adjusted Gross Income to your tax return. Your Schedule CA subtraction of Unemployment Compensation cannot be larger than the federal amount. Phone: 916.845.7088 We disallowed your Young Child Tax Credit because you do not have a Qualifying Child. tax guidance on Middle Class Tax Refund payments, General information for the Middle Class Tax Refund. Your Schedule CA subtraction of Health Savings Account Deduction cannot be less than the federal amount. In addition, the California Franchise Tax Board imposes a penalty equal to 0.5% of the total unpaid tax for each month after the initial 5% penalty. We disallowed or revised your Nonrefundable Renters Credit for one or more of the following reasons: (a) You claimed the wrong amount for your filing status. We reduced or denied your Earned Income Tax Credit because your wages, or a portion of your wages, were not subject to CA State withholding. 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 revised your Federal AGI to the amount reported on your federal return per information we received from the IRS. canceled check, transaction number, etc.). The paragraphs below explain why: Local Agency Military Base Recovery Area Hiring & Sales or Use Tax, Salmon & Steelhead Trout Habitat Restoration, Donated Agricultural Products Transportation, Disabled Access for Eligible Small Businesses, Community Development Financial Institutions Investment, Targeted Tax Area Hiring & Sales or Use Tax. We disallowed the special credit listed below because your Federal Adjusted Gross Income exceeded the maximum allowed for your filing status. We revised your Personal Exemption Credit to the correct amount. You made an error when you calculated your Tax Liability. A business formed at the beginning of the new year will also only be billed for one year's fee in April. You made an error when you subtracted your Schedule CA, Column E Total Adjustments to Income from Total Income. FTB 4058, California Taxpayers' Bill of Rights, includes information on state taxpayers' rights and how to request written tax advice from us. You incorrectly calculated your Taxable Income when you subtracted your Income Distribution Deduction from your Adjusted Total Income. You cannot claim credit for Real Estate and Other Withholding unless you report the related income. Your corporation incorporated or qualified through SOS on or after January 1, 2000. 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. We corrected an error and revised the amount of California adjusted gross income on your return. Phone: 916.845.7088. Please review the California Form FTB 3532, Head of Household Filing Status Instructions or FTB Publication 1540 for more information. You made an error when you added up your Total Tax. Update your records Pay any balance due If you don't agree with the change Enter the code below and find out what you need to do. Franchise Tax Board; Office of the Governor; . Did not begin business as a sole proprietorship, partnership, or other form of business entity before it incorporated. Free Military tax filing discount. We corrected the payment amount and credits available. We revised your Dependent Parent Credit to the correct amount. We cannot guarantee the accuracy of this translation and shall not be liable for any inaccurate information or changes in the page layout resulting from the translation application tool. 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. Penalty code "B" doesn't mean anything when I search online. The underlying security may be a stock index or an individual firm's stock, e.g. We revised your refund because: (a) You incorrectly added your total payments and credits, or (b) You made an error subtracting your payments and credits from total tax. We revised your California adjusted gross income based on information from your Schedule CA (540NR). We revised the California taxable income on your tax return for one or more of the following reasons: (a) You made an error calculating or transferring taxable income. To save time, upload any supporting documents to your MyFTB account (optional). We revised the net Premium Assistance Subsidy (PAS) repayment amount because you made an error when you transferred your repayment amount from Form 3849, Premium Assistance Subsidy, to your tax return. Refer to the Form 3514 instructions for more information. Rev. We revised the special credit listed below to the maximum allowed for your filing status. We calculated your income using the information you provided on Forms 568, Schedule B, Income and Deductions, and Schedule K, Members Shares of Income, Deductions, Credits, etc. Domestic partnerships that do not register with the Secretary of State are not limited partnerships. Forms, publications, and all applications, such as your MyFTB account, cannot be translated using this Google translation application tool. The penalty is 5 percent of the amount that was not paid, plus .5 percent monthly, until it is paid (subject to a 25 percent maximum). Gather: Withholding documents (W-2, W-2 C, 1099-R) and final year-to-date pay stub(s). Updated January 2020 to reflect new Franchise Tax Board form. We limited your Exemption Credits based on your federal adjusted gross income. We impose the penalty from the original tax return due date. You made an error when you limited or calculated your CA Prorated Exemption Credits. (1) In general. We revised your earned income because it was based on difficulty of care payments from In Home Supportive Services (IHSS) program. You filed multiple tax returns for the same tax year. You made an error on your Schedule S when you calculated the percentage on Line 5. Gather: Social Security card, Driver's License and/or identification cards. For additional information, go to ftb.ca.gov and search for 3506 to refer to FTB 3506, Child and Dependent Care Expenses Credit, instructions. We cannot transfer to the California Department of Tax and Fee Administration the Use Tax amount reported on your income tax return because you have no credit available. We reduced the special credit listed below to the maximum percentage of net tax allowed for the credit. Limited Liability Companies as LLCs. A profit and loss statement or schedule used to determine the business income and expenses reported on your tax We revised your Young Child Tax Credit because you incorrectly transferred the credit amount from your Form 3514, California Earned Income Tax Credit, to your tax return. We revised the penalty amount because you did not provide a valid coverage or exemption code. Gather: A copy of your California income tax return. 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. If you have documentation supporting the original amount of withholding claimed, please contact us. We revised or disallowed your Earned Income Tax Credit because you did not substantiate your business activity. the California Unemployment Insurance Code (CUIC) C. Penalty Determination - Section 1112.5 of the CUIC 48. . This Google translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only. 2. The board is composed of the California State Controller, . A stock derivative is any financial instrument for which the underlying asset is the price of an equity. Incorporated or qualified with SOS on or after January 1, 2000. 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. Was not a Regulated Investment Company (RIC), Real Estate Mortgage Investment Conduit (REMIC), Financial Asset Securitization Investment Trust (FASIT), or a Qualified Subchapter S Subsidiary (Qsub). Enter the code below and find out what you need to do. . You made an error when you subtracted your Total Tax Withheld from your Tax. (R&TC Section 17942), If you do not file your entitys income tax return by the 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 return due date, for each month or part of a month the return is late.