FTB Audit Representation Help
No one wants to face a state tax audit. For residents and business owners in California, the Franchise Tax Board or FTB may conduct audits for a variety of reasons. But whatever the reason, you should have the best FTB audit representation by your side.
Audits are not limited to people in high income brackets or business owners. Individuals can be audited no matter the income reported. No one who files their tax returns in California should consider themselves immune from an audit.
Considering the complications involved with most state exams or audits, having a professional, experienced representation help may make the difference between a smooth audit process, and one filled with misunderstandings that might lead to an unpleasant conclusion.
But what is an FTB audit, what may happen, and why should you get FTB audit representation?What are FTB Audits?
Put simply, this is a review by the Franchise Tax Board of your California state tax return or returns. The audit is conducted to verify your income and ensure that the deductions are accurate. Your notice of being examined, audited will come in the form of a letter that will include the following information.
- What Years of Tax Returns will be Reviewed
- What Information You Need to Provide
- Contact Information to the FTB
Keep in mind that an audit is different than a correction or change that might occur if they catch a simple or common mistake. Quite often, the IRS and FTB when catching a mistake will inform you of the error and the consequences of the mistake that is corrected. This is not an audit, but you can challenge the results if you believe that they are mistaken.
Proper FTB audit representation help can also work for double-checking errors that are caught by the FTB. By consulting with tax professionals (EAs, CPAs, Lawyers), you can ensure whether the error was correct or not. And based on the result, take the next step.
Call us today at 1-877-78-TAXES [1-877-788-2937]. We are a local Los Angeles, California firm but serve taxpayers nationwide.The Franchise Tax Board
The Franchise Tax Board in California is quite thorough in collecting what it considers to be owed taxes. This means that they can be quite aggressive in their pursuit of an audit. You can expect that your bank records, purchases, and other transactions will be scrutinized to see if any income is present which has not been accounted for in your tax returns.
In addition, any activity that might raise a red flag about your income is also thoroughly investigated. This may include the following.
- A Tip-Off to the IRS or other Party about Your Income
- Living in Another State Before Moving to California
- Having a Second Home in the State
There may be other indications to the Franchise Tax Board that you may have income not reported on your tax returns. Having proper FTB audit representation help is always recommended, but there are things you can do to minimize the chances of being audited.
Document Everything: From everything you earn to the purchases you make, the better the documentation, the less likely you are to be audited. The FTB may be diligent and relentless in pursuing income not reported, but they are not going to waste their time if you have reported everything and backed it up with good documentation. You may use FTB audit representation to help you in the documentation efforts.
Prove Residency: One of the trickier aspects of FTB audits can be the establishment of residency. Even if you have lived in California for a while, it is important to prove that you are a resident. This may include having documentation of the following.
- Driver’s License, Copy of Home Deed, Electrical Bills, and the Like
- Where Your Spouse and Children Live
- Location of Bank Accounts, Church, Your Doctor, & More
Establishing residency is important because it alleviates concerns that you may be evading some taxes that are earned out of state.
Professional Representation: Good tax professionals (EAs, CPAs, Lawyers), are not only invaluable in assisting you during an audit, but they can also help prevent one as well. By having knowledgeable, experienced tax professionals go over your returns and receipts, they can help ensure that everything is properly covered. Plus, they may even spot areas where you can save money through proper deductions.
But what if you are audited? Getting the proper FTB representation help is always recommended, but what can you expect?What to Expect?
Once you receive the letter informing you of the audit, the next steps will include more letters that will inform you of the following.
Setting an Appointment: This is the time and date that you will meet with agents of the FTB. This can be negotiated to allow you to obtain FTB audit representation, locate the proper documents, and provide chances for you to respond.
Deadlines: In addition, the audit letter may provide deadlines as to when to submit requested materials. You have the right to negotiate such deadlines as well if they will take time to obtain. However, there will be some limitations.
Response: Perhaps the most important step is the response to the letter than you will receive. Many audits are based on specific pieces of information. If you provide such information, then it is possible that the full audit might not occur.
For example, if the audit letter was about the purchase of a specific item or use of a deduction based on a status you hold, if you provide such information then the audit itself might be resolved before it begins. Of course, that is not always the case and the FTB may continue its audit to search for other information. However, you have nothing to lose by answering the request for documentation. Proper FTB audit representation may help in this regard.
Call us today at 1-877-78-TAXES [1-877-788-2937]. We are a local Los Angeles, California firm but serve taxpayers nationwide.Audit Conclusion
After all the information has been gathered, processed, and reviewed, the FTB will issue the results of the audit. The conclusion may result in one of the following results.
- No Change: You do not owe any additional taxes
- Proposed Assessment: You owe an additional set of taxes
- Proposed Overassessment: Compensation based on the findings
- Overassessment, Refund, or Credit
- Proposed Carryover Amount: What you may owe next year on your taxes
If you have filed a claim for a refund, that may be partially or fully denied because of the audit.
However, the audit conclusion is not the final step. You have the right to appeal the results if you disagree with the decision reached regarding the audit. This means that the audit will be reviewed again by a different set of authorities as laid out in the FTB rules and regulations.
Proper FTB audit representation help should be your first step when faced with an audit from the Franchise Tax Board.Why Get FTB Audit Representation?
Even if the issues involving your audit seem straightforward and obvious, getting the best FTB audit representation is always recommended. Considering all the complications of federal and California tax laws, having professional (EAs, CPAs, Lawyers), experienced representation by your side means having the following advantages.
Knowledge: Perhaps the most important aspect of having FTB audit representation is the knowledge and experience they bring to such situations. For most people, the biggest fear of being audited is not so much the possible ramifications, but rather not knowing their rights or what they can do under the circumstances.
By having proper representation help, you will be informed at every step so you can make the best-informed decisions about what to do. The knowledge and experience that the right tax professionals bring means that you can have peace of mind knowing about all the options at your disposal.
Action: The audit is not a one-way process. There are steps you can take which can make it go faster or even resolve the issue in a shorter timeframe. Your trusted tax professional will assess the situation and provide actionable responses so you can improve your situation. Quite often, tax audits are created by simple mistakes or misunderstandings that can quickly be resolved.
But even if the situation is more complicated, having the right team by your side means taking action that may result in a faster solution to the situation. That is why having FTB audit representation help is so important.
Representation: You have the right under the law to be represented. This form of representation is vital towards protecting your rights. At every stage, your representation will be there to stand by you and ensure that your rights are being observed by the authorities.
Such representation may make all the difference when undergoing an audit. Do not take for granted your rights and have the proper FTB audit representation with you through every step. Otherwise, you may be taken advantage of or not fully understand your rights to object or have alternative choices which may save you in terms of monetary penalties.
If you are facing an audit in California, you need the best FTB audit representation. This means professional assistance that can explain the situation, provide you with options, and stand by your side during the entire audit process. Your rights need to be protected when facing an audit, so be sure to contact the right tax professionals (EAs, CPAs, Lawyers), to stand by you.
Call us today at 1-877-78-TAXES [1-877-788-2937]. We are a local Los Angeles, California firm but serve taxpayers nationwide.