Incorrect FTB and IRS notices being sent to taxpayers (06-15-22)

FTB

The FTB has confirmed that due to a software company’s error, approximately 13,000 returns did not properly subtract federal NOL adjustments from taxpayers’ California AGI. This has generated a number of notices to taxpayers, and many practitioners have reported contacting the Tax Practitioner Hotline to resolve these issues. The FTB is working directly with the software provider to resolve the issue, and the FTB is manually correcting the returns of all impacted taxpayers. The correction and updated information will be displayed on the taxpayers’ MyFTB accounts by the end of June. There is no further action required on the part of taxpayers or practitioners.