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CA sent a letter to an old client saying that they think she needs to file a 2017 return

Just-Lisa-Now-
Level 15
Level 15

Normally her income isn't enough for any filing requirement, but she did take an early IRA withdrawal for 20K that year and did an indirect rollover within 60 days, so theyre right, she needs to file a return to show this BUT you don't see that on the CA return, since it starts with the fed AGI.  

(I'm expecting the CP2000 to arrive any day now, not sure how CA managed to know about it before the feds)

I will be E-filing it, but the printed copy of the return says DO NOT ATTCH FEDERAL RETURN, so how does CA know that the distribution was actually reported?  Does it pick up something from the Federal return in the E-filing?  

I'm guessing CA knows how much it was for or they wouldn't have sent the letter, seems like they would be expecting it to appear on the return, but nothing on the CA return shows the distribution or that it was a rollover.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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abctax55
Level 15

I'd footnote the hell out it, maybe even attach the proof of the 60 day roll-over.  

And re-read the notice; maybe just an explanation & the proof (via paper...) will suffice?

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abctax55
Level 15

I'd footnote the hell out it, maybe even attach the proof of the 60 day roll-over.  

And re-read the notice; maybe just an explanation & the proof (via paper...) will suffice?

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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Just-Lisa-Now-
Level 15
Level 15
IRS is going to be sending a CP2000 I'm sure, so I figured we may as well Efile both of them. Maybe I'll send a copy of the fed along with the FTB response letter.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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abctax55
Level 15
Probably...but *maybe* the IRS is smarter than the FTB?
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Just-Lisa-Now-
Level 15
Level 15
The 1099R was coded with a 1, there's going to be a CP2000.   I just find it odd that FTB made contact before IRS

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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abctax55
Level 15
Unless the F 5498 included enough info for the IRS to figure it out (that *would* be a suprise 🙂
I don't know if the FTB receives a copy of the F 5498.
Keep us posted - it is a bit odd for the FTB to act first.
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Accountant-Man
Level 11

2017 1040 fileable April 2018, so add 14-16 months to April 2018 to get August to October 2019, and BINGO! CP-2000.

** I'm still a champion... of the world! Even without The Lounge.
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