The California Franchise Tax Board (FTB) is experiencing a significant number of telephone calls, online chat queries, and in-person office visits related to withholding reports that were submitted late by taxpayers’ employers. Taxpayers’ returns were assessed and adjusted before the reports were received, leading to a high volume of complaints. The FTB has extended taxpayer response time to adjustment notices by two weeks and is re-valdiating affected returns.
The FTB will issue notices of these actions to affected taxpayers by June 13, 2016.