Calif FTB Fishing Expedition

[S T]

Just a post for California Preparer's
Just had a phone call from one of my clients on behalf of their parent
Parent has not had a filing requirement for Federal or California for several years - Modest Retirement Income and the balance of income Social Security Benefits.
T/P parent received a notice from Franchise Tax Board (California) that a return was required, as they had records of a Mortage Interest Payment of under $5,000 - So FTB is looking for under reported income - year 2006, which means 2007 and 2008 to follow. No notice from IRS.
California FTB is up to their old tricks and on another "Fishing Expedition" which means filing returns or answering notices.

I have already worked the income numbers and even with the Standard Deduction for California, this return does not warrant a filing with IRS or FTB.

Total Revenue Raising - trying to balance that Budget! Guess they will catch a few
non reporters or under reporters of income.

Sandy

[OtisMozzetti]

ultimately, no filing requirement

T/P parent received a notice from Franchise Tax Board (California) that a return was required, as they had records of a Mortage Interest Payment of under $5,000 - So FTB is looking for under reported income

California FTB is up to their old tricks and on another "Fishing Expedition" which means filing returns or answering notices.

Sandy

I do see a steady trickle of such notices where the response consists of returning the notice with explanation that the California gross income and California adj. gross income were under the filing requirement.

[DTS]

Fishing

None of my clients have rec'd any of these notices, yet.

D

[DaveO]

Iowa has been up to similar tricks lately. They are sending notices out to insurance agents who received a 1099 from an Iowa based company demanding proof that they had no Iowa income.