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Conquering the Challenges of Franchise Tax Board Audits

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When it comes to taxes, the idea of "Franchise Tax Board audits" can make even experienced business owners nervous. The Franchise Tax Board (FTB) is a formidable entity known for its rigorous scrutiny of tax returns. It's a common misconception that the FTB only audits large corporations. In reality, the Franchise Tax Board audits people who move, small businesses, and individuals alike.

At Tax Resolution Plus, we understand the intricacies of the audit process. Our experienced team of tax professionals is here to support you through every stage of the audit, from the initial notification to the final resolution.

Don't miss out on the benefits of ERC.

Contact us today for a free consultation and let us help you maximize your ERC claim!

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FTB Audit: The What, Why, and How

What is an FTB Audit?

FTB audits are comprehensive reviews of your tax returns by the Franchise Tax Board. The FTB conducts these audits to ensure the accuracy of tax returns and to verify that taxpayers are meeting their tax obligations. The phrase "Franchise Tax Board audits people who move" has become a common refrain, highlighting the FTB's focus on recently relocated individuals.

Why Does the FTB Conduct Audits?

The FTB performs audits to safeguard the tax system's integrity and ensure taxpayers pay their fair share. Anomalies or irregularities in tax returns often initiate audits. For example, a sudden, significant change in income, excessive deductions, or inconsistencies between state and federal returns can all raise red flags.

How much would I qualify for?

+ $5,000

Up To $5,000 Per Employee Per Year

+ $21,000

Up To $5,000 Per Employee Per Year

How Does an FTB Audit Work?

The FTB audit process begins with the FTB selecting a tax return for review. This can be random or triggered by specific issues identified in the return. The taxpayer is notified of the audit and provided information about the process.

During the audit, the FTB will review the taxpayer's records and financial information to verify the accuracy of the tax return. This can include bank statements, receipts, invoices, and other financial documents.

The FTB may ask the taxpayer to provide additional information or clarify certain items. Once the audit is complete, the FTB will provide the taxpayer with a report detailing any adjustments to the tax return. If the audit results in additional tax owed, the taxpayer will be required to pay the additional tax, along with any interest and penalties.

Mastering the Maze of Franchise Tax Board Audits

The Initial Phase: Selection for an FTB Audit

The FTB audit process begins with selecting a tax return for review. This selection can be random or triggered by specific issues identified in the return, such as discrepancies, inconsistencies, or significant changes in income or deductions.

The FTB also pays particular attention to recently relocated individuals, hence the phrase "Franchise Tax Board audits people who move."

The Notification and Information Gathering Phase

Once a return has been selected for an audit, the FTB notifies the taxpayer. This notification includes information about the audit process and what the taxpayer can expect. The FTB then begins the information-gathering phase, reviewing the taxpayer's records and financial information.

This can include bank statements, receipts, invoices, and other financial documents. The FTB may also request additional information or clarification on certain items.

The Review and Report Phase

The FTB then reviews the gathered information to verify the accuracy of the tax return. This review can result in no change to the tax return, adjustments to the return, or a determination that the taxpayer owes additional tax.

Once the review is complete, the FTB provides the taxpayer with a report detailing any adjustments and the reasons for those adjustments.

The Resolution and Payment Phase

If the audit results in additional tax owed, the taxpayer must pay the additional tax, along with any interest and penalties. If the taxpayer disagrees with the audit findings, they can appeal.

Franchise Tax Board Audits People Who Relocate

One of the key aspects of the Franchise Tax Board audit process is, its focus on individuals who have recently moved. The phrase "Franchise Tax Board audits people who relocate" holds significant relevance as the FTB pays particular attention to taxpayers who have changed their residence.

Understanding the FTB's Focus on Relocating Individuals

The FTB's focus on people who relocate is rooted in the complexities of state tax laws. When individuals relocate to a new state, they become subject to its tax laws and regulations. This can often result in tax liability, deductions, and reporting requirements changes. The FTB aims to ensure that individuals accurately report their income and deductions in their new state of residence and fulfill their tax obligations accordingly.

Triggers for FTB Audits in Relocations

Moving to a new state can trigger an FTB audit. The FTB uses various indicators to identify recently moved taxpayers and may warrant further scrutiny. These indicators may include a significant increase in income, large deductions, or variations between the taxpayer's state and federal tax returns. By flagging these individuals, the FTB seeks to maintain tax compliance and equity among taxpayers.

FTB Audits After Relocation: Navigating the Process

Facing an FTB audit after moving can be especially challenging since individuals may not be familiar with the tax laws of their new state. This is where professional assistance becomes invaluable. Tax Resolution Plus offers comprehensive guidance and support to taxpayers in this situation. Our team of experts is well-versed in the nuances of FTB audits and can help you prepare for the audit, respond to inquiries, and develop effective tax resolution strategies.

Secure Your Financial Future with Tax Resolution Plus

At Tax Resolution Plus, we understand the weight a Franchise Tax Board audit can place on your shoulders. Our mission is to relieve that burden and empower you to take control of your financial future. With our specialized expertise in FTB audits, personalized strategies, and effective representation, we are your ultimate solution for navigating the complexities of the audit process.

Don't let an FTB audit leave you feeling overwhelmed and uncertain. Our experts will assess your situation, outline a tailored plan, and provide the support and guidance you need to conquer your FTB audit confidently. Take control of your financial future today with Tax Resolution Plus.

Our Team

Of Experts Is Available To Help You To Find Out If You Would Be Qualified For ERC

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FAQs

What is an FTB Audit?

An FTB audit involves a thorough review of your tax returns by the Franchise Tax Board to ensure compliance with California tax laws.

How Can Tax Resolution Plus Help with My FTB Audit?

Tax Resolution Plus offers expert guidance throughout the audit process. Our team of tax professionals understands the intricacies of FTB audits and can skillfully navigate the process on your behalf.

Can I Appeal the Results of an FTB Audit?

Yes, you have the right to appeal the audit results if you disagree with them. Tax Resolution Plus can assist you in preparing and filing the appeal, presenting necessary evidence, and advocating for your interests before the FTB.

How Long Does the FTB Audit Process Typically Take?

The duration of an FTB audit is based on the complexity and volume of documentation involved. While some audits may conclude within a few months, others may take longer. At Tax Resolution Plus, we work efficiently to streamline the process and provide timely updates on your audit status.