Franchise Tax Board Audit

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    California Franchise Tax Board Audits

    Whether you are a franchise owner or run a business in the franchise model, you have likely heard war stories of the dreaded franchise tax board audit. More often than not these days in California, the franchise tax board audit is a vestige of the past as the Franchise Tax Board typically prefers to simply calculate behind the scenes and send a bill.

    If and when an auditor does arrange to make a personal visit, we know that it can be a scary proposition even if you know that everything about your business is completely above board. That is why we always recommend connecting with our team to make the California Franchise Tax Board Audit process as smooth and simple as possible.

    What to Expect During a Tax Board Audit

    According to the Franchise Tax Board Audit Manual, the purpose of a Franchise Tax Board audit is to “effectively and efficiently determine the correct amount of tax based on an analysis of relevant tax statutes, regulations, and case law as applied to the taxpayer’s facts.”

    Simply put, the board is there to see what you owe and make sure you are paying what you should. The vast majority of the time, these audits are simple formalities and your auditor will only need some simple numbers and be on his or her way. Unfortunately, audits are a human endeavor which means there are indeed crooked auditors out there, so be prepared!

    A tax board audit is merely a routine examination of your books, but if you suspect an ulterior motive — such as an auditor who may be fishing for evidence for a criminal case — it is critical to get ahead of the situation before it escalates.

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    Protect Yourself Now!

    Our experts will educate you in the mistakes made previously to help avoid getting into a similar mess in the future.

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    How Leading Tax Group Can Help

    Taking the stress out of a franchise tax board audit is all about being prepared for what is ahead. Take a look at how we can help:

    • Completing a pre-audit of your books — By tracing the history of your payments and assessing your current standing with the IRS, we can help you build an iron clad case before any audit has even occurred.
    • Assessing and reconciling bank statements — In cases where errors or misleading payments are found, we will advise you on how to reconcile all bank accounts before your audit occurs.
    • Prepare you for questions and reviews — We’ll make sure you know exactly what documents you’ll need to show, what questions you’re likely to hear, and what rights you have during the franchise board audit.
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    Frequently Asked Questions

    Headquartered in Encino, California with multiple local branch offices in your backyard to serve you at your convenience. Leading Tax Group can schedule a face to face consultation to represent your case with the IRS, FTB, EDD, as well as CDTFA Audits.

    In most cases, a Franchise Tax Board audit is triggered by discrepancies found or suspected during an internal review. If you need help with a current FTB audit, or if you just want to get more information, Call Leading Tax Group.

    Yes, the Franchise Tax Board can garnish wages just like the IRS. If you feel that they are taking more than you can afford, call Leading Tax Group. We will do our best to change the garnishment and lessen the financial burden.

    Because they love you? No. The letter is usually the way to remind you of a balance due or a tax return due or received. However, the FTB can send you a letter notifying you of future or current liens or levies.

    FTB is the state of CA taxing authority, so it handles state income tax obligations. The IRS handles federal income tax obligations. However, the two often work together if the situation warrants it.

    The Franchise Tax Board typically has 4 years from the date you filed your return to issue an assessment. However, special circumstances can apply. Call Leading Tax Group for more information about these circumstances or for assistance.

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    Getting out ahead of your franchise tax board audit in California is the best way to make the process as smooth and simple as possible. With the right help, you should never fear an audit. We want to prepare you for the best possible outcome!

    Contact our team today to discuss your tax board audit needs now!