What Is An FTB Audit?

On: August 4, 2023

No one wants to find themselves at the center of a state tax audit, but it does happen. Business owners and residents in California may find themselves at the center of an FTB (Franchise Tax Board) audit for a number of reasons.

Audits are never limited to just one set of taxpayers and can happen to anyone. Whether you are new to the state, a long-time taxpayer, or simply just trying to keep your business afloat, having the best representation during an FTB audit is important.

What Exactly is an Audit by the Franchise Tax Board?

An FTB audit occurs when the Franchise Tax Board wants to review your California state tax return. These audits are usually done to ensure that the income and deductions you are claiming are accurate. An audit does not mean that the FTB thinks you are lying or committing fraud but it is used as more of a checkup.

How Will I Know the FTB Selected Me for an Audit?

The FTB will notify you via a notice in the mail when you have been chosen for an audit. The notification will include important information such as:

• How to contact the FTB
• The years included in the audit
• Information you need to provide to the FTB

What Should I Expect from an FTB Audit?

It is likely that your nerves are going crazy after receiving the notice of an FTB audit. Not knowing what to expect can have you worried.

There are some important things you want to pay attention to when it comes to your audit. First, you should not ignore the letter and take note of the time and date that has been set up for you to meet with the FTB. If you plan to retain a tax professional, the date and time can be adjusted for this.

You also want to make note of any deadlines to submit documentation and paperwork to the FTB. You do not want to miss these deadlines.

The FTB will require a response to this letter. The way you handle this will depend on whether you work with a tax professional or not. If you choose to attempt to go into the FTB audit alone, you will want to make sure you respond within the stated timeframe. It is recommended that you refrain from pursuing the audit independently but that you retain counsel to do so. Your tax team will answer the FTB for you and make sure the response is received in time.

At the end of the audit, you will receive a conclusion and decision.

Get FTB Audit Representation From Leading Tax Group 

Even though an audit may seem like something very simple, it can get complicated very quickly. Securing the best FTB audit representation is crucial to making sure your audit is handled properly and that you do not face huge penalties or fines, should you incur them.

By having the best IRS tax experts on your team, you will be informed and guided every step of the way through your FTB audit. You will have the peace of mind you need and you won’t have to stress out as you wait for the following letter or communication from the FTB.

No matter what stage of the FTB audit you are in, turn to the team at Leading Tax Group today for the best representation.