CALIFORNIA FRANCHISE TAX BOARD PROTEST LETTER

NOTICE OF PROPOSED ASSESSMENT (NPA) PROTEST

TAXPAYER INFORMATION

Taxpayer Name: [FULL LEGAL NAME]

Social Security Number / FEIN: [SSN/FEIN]

California ID Number (if applicable): [CA ID]

Current Address:
[STREET ADDRESS]
[CITY, STATE ZIP]

Daytime Telephone: [PHONE NUMBER]

Email Address: [EMAIL]

NPA Number: [NPA NUMBER]

NPA Date: [DATE]

Protest By Date: [DATE FROM NPA]

Tax Year(s): [TAX YEAR(S)]

COVER LETTER

[DATE]

Franchise Tax Board
Protest Unit
P.O. Box 942857
Sacramento, CA 94257-4040

Via Certified Mail No.: [TRACKING NUMBER]

Re: Protest of Notice of Proposed Assessment
Taxpayer: [TAXPAYER NAME]
SSN/FEIN: [NUMBER]
NPA Number: [NPA NUMBER]
Tax Year(s): [YEAR(S)]
Proposed Assessment Amount: $[AMOUNT]

Dear Protest Unit:

I hereby protest the Notice of Proposed Assessment (NPA) dated [DATE] for the tax year(s) [YEAR(S)]. This protest is filed within 60 days of the NPA date as required by California Revenue and Taxation Code.

SECTION 1: PROTEST DEADLINE VERIFICATION

☐ This protest is being filed within 60 days of the NPA date
☐ This protest is being filed by the "Protest By" date shown on the NPA: [DATE]

NPA Date: [DATE]
60-Day Deadline: [DATE]
Date of This Protest: [DATE]

SECTION 2: PROPOSED ASSESSMENT SUMMARY

SECTION 3: ISSUES BEING PROTESTED

Select all items being protested:

☐ Filing status
☐ Exemptions/dependents
☐ Income items (wages, interest, dividends, etc.)
☐ Business income/Schedule C
☐ Capital gains/losses
☐ Deductions (itemized or standard)
☐ Credits
☐ Residency status
☐ Penalty assessments
☐ Interest calculations
☐ Other: [DESCRIBE]

Specific Items in Dispute:

Item 1: [DESCRIPTION]
- FTB Position: $[AMOUNT]
- Taxpayer Position: $[AMOUNT]
- Difference: $[AMOUNT]

Item 2: [DESCRIPTION]
- FTB Position: $[AMOUNT]
- Taxpayer Position: $[AMOUNT]
- Difference: $[AMOUNT]

[ADD ADDITIONAL ITEMS AS NEEDED]

SECTION 4: STATEMENT OF FACTS

Provide a detailed statement of facts supporting your position:

[CHRONOLOGICALLY DESCRIBE THE RELEVANT FACTS. INCLUDE DATES, TRANSACTIONS, AND CIRCUMSTANCES THAT SUPPORT YOUR POSITION.]

1. [FACT 1]

2. [FACT 2]

3. [FACT 3]

4. [FACT 4]

SECTION 5: LEGAL ARGUMENTS

Provide the legal basis for your position:

California Revenue and Taxation Code Sections:
[CITE APPLICABLE R&TC SECTIONS]

California Code of Regulations:
[CITE APPLICABLE REGULATIONS]

FTB Publications or Legal Rulings:
[CITE APPLICABLE FTB GUIDANCE]

Case Law:
[CITE RELEVANT CALIFORNIA OR FEDERAL CASES]

Analysis:
[EXPLAIN HOW THE LAW SUPPORTS YOUR POSITION]

SECTION 6: RESIDENCY PROTEST (IF APPLICABLE)

If protesting California residency determination:

Claimed Residency Status:
☐ California resident for entire year
☐ California part-year resident (dates: [FROM] to [TO])
☐ California nonresident
☐ Safe harbor residency claim

Domicile State: [STATE]

Factors Supporting Residency Position:
☐ Physical presence/days in California: [NUMBER] days
☐ Location of permanent home
☐ State of driver's license: [STATE]
☐ State of vehicle registration: [STATE]
☐ State of voter registration: [STATE]
☐ Location of professional licenses
☐ Location of bank accounts
☐ State where income earned
☐ Other factors: [DESCRIBE]

SECTION 7: PENALTY PROTEST (IF APPLICABLE)

If protesting penalties:

Penalty Type(s):
☐ Accuracy-related penalty (R&TC § 19164)
☐ Late filing penalty (R&TC § 19131)
☐ Late payment penalty (R&TC § 19132)
☐ Fraud penalty (R&TC § 19164)
☐ Other: [DESCRIBE]

Basis for Penalty Abatement:

☐ Reasonable Cause - I exercised ordinary care and prudence
[EXPLAIN]

☐ Reasonable Basis - My position had substantial authority
[EXPLAIN]

☐ Reliance on Professional Advice
[EXPLAIN]

☐ FTB Error
[EXPLAIN]

☐ Other:
[EXPLAIN]

SECTION 8: DOCUMENTATION ATTACHED

Checklist of Supporting Documents:

☐ Copy of Notice of Proposed Assessment (NPA)
☐ Copy of California tax return for year(s) at issue
☐ Copy of federal tax return for year(s) at issue
☐ W-2 forms
☐ 1099 forms
☐ Schedules and supporting documentation
☐ Bank statements
☐ Receipts/invoices
☐ Contracts/agreements
☐ Letters or communications with FTB
☐ Power of Attorney (FTB 3520)
☐ Other: [DESCRIBE]

Document Index:

SECTION 9: HEARING REQUEST

☐ I request a hearing before the FTB Hearing Officer
☐ I do not request a hearing at this time

If requesting a hearing:

Preferred Format:
☐ In-person at FTB office
☐ Telephone conference
☐ Video conference

Preferred Location (if in-person):
☐ Sacramento
☐ Other: [LOCATION]

SECTION 10: PAYMENT OPTION

Interest Avoidance:

If the FTB receives full payment within 15 days of the NPA date, no additional interest will accrue on the proposed assessment (and you retain your protest rights).

☐ Full payment enclosed: $[AMOUNT]
☐ Partial payment enclosed: $[AMOUNT]
☐ No payment enclosed at this time

Payment Note: Filing a protest does not stop interest from accruing. Consider paying the disputed amount (or posting a bond) to stop interest if you believe your protest may take time to resolve.

SECTION 11: QUICK RESOLUTION WORKSHEET

The Quick Resolution Worksheet is required with your protest.

☐ Quick Resolution Worksheet is attached

[COMPLETE THE QUICK RESOLUTION WORKSHEET FROM THE NPA AND ATTACH]

SECTION 12: TAXPAYER CERTIFICATION

Under penalties of perjury, I declare that I have examined this protest and all attached documents, and to the best of my knowledge and belief, they are true, correct, and complete.

Taxpayer Signature: ___________________________________

Printed Name: [TAXPAYER NAME]

Date: [DATE]

SECTION 13: AUTHORIZED REPRESENTATIVE (IF APPLICABLE)

Representative Name: [NAME]

Firm Name: [FIRM]

Address:
[ADDRESS]

Telephone: [PHONE]

Fax: [FAX]

Email: [EMAIL]

CTEC or PTIN Number: [NUMBER]

☐ FTB Form 3520, Power of Attorney Declaration is attached
☐ Representative is authorized to receive all FTB correspondence
☐ Representative signature below certifies this protest

Representative Signature: ___________________________________

Date: [DATE]

ONLINE PROTEST OPTION

File Your Protest Online:

1. Go to ftb.ca.gov
2. Log in to MyFTB
3. Select "Account" then "Proposed Assessments"
4. Select the NPA number you wish to protest
5. Follow the online protest instructions

Online Filing Requirements:
- Must have filed valid tax returns for the last 5 years
- Cannot file online if you have unfiled returns

MAILING INSTRUCTIONS

Mail Protest To:

Franchise Tax Board
Protest Unit
P.O. Box 942857
Sacramento, CA 94257-4040

Or File Online: ftb.ca.gov/MyFTB

Send via Certified Mail with Return Receipt Requested

Certified Mail Number: ______________________
Date Mailed: ______________________

WHAT HAPPENS AFTER YOU FILE

1. Acknowledgment: FTB will acknowledge receipt of your protest

2. Assignment: Your protest will be assigned to a Hearing Officer (Legal Division) or Auditor (Audit Division)

3. Review: The assigned officer will review your protest and documentation

4. Contact: The officer may request additional information or schedule a hearing

5. Notice of Action: FTB will issue a Notice of Action with their determination

6. Appeal Rights: If you disagree with the Notice of Action, you have 30 days to appeal to the Office of Tax Appeals (OTA)

APPEAL TO OFFICE OF TAX APPEALS (OTA)

If you disagree with FTB's determination on your protest:

• Deadline: 30 days from the mailing date of the Notice of Action

• Where to File: Office of Tax Appeals (OTA)
  400 R Street, Suite 400
  Sacramento, CA 95811
  Website: ota.ca.gov

• Forms: Use OTA's appeal form (available at ota.ca.gov)

• No Fee: There is no fee to appeal to OTA

IMPORTANT NOTES

1. Interest Continues: Filing a protest does not stop interest from accruing. To stop interest, you must pay the proposed assessment or post a bond.

2. Collection Activities: FTB generally will not take collection action while your protest is pending.

3. Statute of Limitations: Filing a protest extends the time FTB has to assess additional tax.

4. Maintain Records: Keep copies of everything you submit and receive.

5. Update Address: Notify FTB if your address changes during the protest process.

6. Related Federal Issues: If the IRS makes changes to your federal return, FTB may also adjust your California return.

This template is provided for informational purposes and should be reviewed by qualified tax counsel before submission to the FTB.