Franchise Tax Board proposed assessment

Notice of Proposed Assessment · NPA · Notice of Action · Demand for Tax Return

What it is

The Franchise Tax Board proposes additional tax, often from a federal adjustment it received or from income it attributes to a nonfiler on a Demand for Tax Return. A protest keeps the assessment from becoming final; a Notice of Action on the protest opens the appeal to the Office of Tax Appeals.

The clock it starts

Protest in writing within 60 days of the date on the Notice of Proposed Assessment; otherwise it becomes final and due. Appeal a Notice of Action to the Office of Tax Appeals within 30 days of its date. A paid assessment is disputed by a claim for refund within the refund period.

What a response has to establish

A protest that states the grounds and the facts, with the federal account transcript where the assessment mirrors a federal change, and the computation under California conformity rules.

Authority

• Cal. Rev. & Tax. Code §19041
• Cal. Rev. & Tax. Code §19044
• Cal. Rev. & Tax. Code §19045
• Cal. Rev. & Tax. Code §19104
• Cal. Rev. & Tax. Code §19322

For tax professionals. The date printed on the notice controls. CitedTax is a research and drafting tool; the reviewing professional validates every item before reliance.