The FTB has once again issued letters to targeted taxpayers with large Schedule A itemized deductions or large Schedule C expenses, this time for tax year 2021. The FTB successfully used this strategy two years ago for tax returns filed for 2019.
The benefit to taxpayers is having the opportunity to fix an unintended error by filing an amended return, without going through a full FTB audit which can be time-consuming and stressful (although the FTB may still audit the tax year within the applicable statutory period). Taxpayers are advised to review each successive year, as well, and not only 2021 when they receive the FTB letter.
To read further about the FTB letters, click here.
