When will you receive your refund? The answer depends on how you filed your return. The IRS should issue your refund check within six to eight weeks of filing a paper return.
Miss last month's newsletter? No problem. We keep the last 6 months of newsletters here for you to read.
WHAT' S UP WITH THE FRANCHISE TAX BOARD ?
California residents are in for a big surprise.
How did this change in the tax law impact your California income tax return? For the most part, the answer will be that the changes will have no impact at all. California does not generally conform to Federal income tax law. California non-conformity will result in many taxpayers who claim the standard deduction for Federal purposes still itemizing deductions for California purposes. This means a host of federal and state differences that your tax preparer will need to track and pin down before completing your return.
There is more fun---just as predicted. The California State Franchise Tax Board is sending "WARNING" letters to taxpayers based on your prior year returns. The Franchise Tax Board is hinting that your deductions are "significantly higher than what would be expected".
Specifically, the FTB letter will list:
The form number of the letter is FTB 4709ENS. This letter will list IRS publications that they think you should read. They are hinting that they think you are lying, and that you should read the law to make very certain you didn't do your tax return incorrectly.
The letter is NOT a audit, but it could be warning. If you are claiming dedutions that are not proper, the FTB is telling you to rethink whether or not you really want to deduct these items. Failure to reduce the deductions could result in an audit. My guess is if they see simiilar expenses in 2018, you may get an audit letter.
If you receive one of these letters, please make sure to notify me.