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FTB notices, therye adding the Federal NOL back to CA twice!

Just-Lisa-Now-
Level 15
Level 15

Another preparer in town is seeing the same notices, we both use ProSeries, so Im not sure if this is some weird software snafu or if FTB has just gone cuckoo.


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

@Just-Lisa-Now- 

Lisa, did you get the Spidell flash alert regarding this issue?  

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.


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14 Comments 14
Just-Lisa-Now-
Level 15
Level 15
Posted on the caltax.com boards, looks like FTB is spewing them out to everyone!

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

@Just-Lisa-Now- 

Lisa, did you get the Spidell flash alert regarding this issue?  

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.


#StandWithUkraine
craig
Level 2

Just talked to the FTB.  According to the FTB Intuit showed the NOL as a positive number instead of a negative number.  Could Intuit be that Software Company in Spidell's notice.

Just-Lisa-Now-
Level 15
Level 15
Yep, saw it a few minutes ago! I didnt want to have to call FTB PPS and deal with all these!

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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cpahdr
Level 2

Some of my clients received notices but in reviewing the returns the federal NOL was correctly added back to the federal AGI to arrive at the correct Calif AGI, but these notices give no explanation as to how the FTB arrived at the Calfi AGI they show on the notice.

Just-Lisa-Now-
Level 15
Level 15
they doubled up and added the Fed NOL back to the CA AGI

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Incorrect FTB and IRS notices being sent to taxpayers

June 15, 2022

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.

abctax55
Level 15

@twainhartetaxman 

Yep... posted that yesterday on this thread 😁


#StandWithUkraine
TaxToad
Level 1

I talked to someone at FTB earlier today and she said it is a ProSeries error.  She said she knew of at least 500 returns with this problem but she the number was being updated and thought it would be higher.

Just-Lisa-Now-
Level 15
Level 15
Just saw the program alert across the top of the program.

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

No banner on Lacerte... so sounds like just a PS issue.


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Gregory Gandrud
Level 3

At least two of my 400 clients received such a notice. Something similar happened many years ago with trust returns. Have not heard anything from ProSeries on this issue. But I'm not surprised as ProSeries customer service has really plummeted in the past year.

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Just-Lisa-Now-
Level 15
Level 15
Yellow banner alert across the top of the program yesterday.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Gregory Gandrud
Level 3

Three days late and $18k short.

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