Franchise Tax Board (FTB)
Franchise Tax Board audits are of three types. The first type involves automated notices that calculate a proposed tax and invite you to respond by mail if you disagree with the proposed increase in tax. The second type is a “piggyback” tax audit. In this type of audit, the Franchise Tax Board makes the same adjustments that were made by the IRS in an IRS audit. The IRS does routinely notify the Franchise Tax Board of its audit results.
You should also be aware that you are legally required to notify the Franchise Tax Board yourself (i.e., turn yourself in) of any IRS audit changes (and you may be subject to penalties if you fail to do so). The third type of tax audit is an audit of specific items on your return. This is similar to an IRS audit and a special auditor will be assigned to handle the case. This type of audit is fairly rare but does occur.
.......................................................................................................... To improve your experience and keep everyone safe, we offer telephone and video conference consultations with our seasoned attorneys.