Tax News | FTB.ca.gov (2024)

MyFTB Multi-Factor Authentication Coming Soon

FTB places high importance on the security of private and confidential information. In our continuing effort to enhance security and safeguard taxpayer information, FTB is implementing a new multi-factor authentication process to log in to MyFTB.

Multi-factor authentication helps protect taxpayers by making it more difficult for someone else to sign in to your MyFTB account. It requires a username, password, and a one-time passcode (sent via text or voice call) for each MyFTB sign-in.

Starting mid-June 2024, FTB will require new and existing MyFTB users to provide and verify a phone number for the multi-factor authentication process. MyFTB users will be provided a one-time passcode to verify their phone number. Once the phone number is validated, FTB will no longer ask for a security question. With multi-factor authentication, users will receive a one-time passcode every time they sign in unless they select the "remember me" option on their device. MyFTB users may provide up to two phone numbers, and only customers who provide a valid phone number can register or log in to MyFTB.

We will share information on our website once the multi-factor authentication is implemented.

Tax Information Authorization Vs. Power of Attorney

As we continue with the 2024 tax filing season, tax practitioners are encouraged to confirm their active Tax Information Authorization (TIA) or Power of Attorney (POA) relationships with their individual, fiduciary, group nonresident return, and business entity clients and to establish and/or renew such authorizations when necessary. For purposes of FTB's POA declarations and TIA forms, a tax professional is a representative that has a professional identification number that is eligible to register for a tax professional online account in MyFTB.

TIA

A TIA allows tax practitioners to access some tax account information for their clients. A TIA is valid for all tax years and generally valid for 13 months, unless it is otherwise revoked. It can be renewed online through MyFTB by a tax professional or by submitting a new TIA form.

When we approve a new TIA relationship, we automatically grant tax professionals limited online account access to their clients' information in MyFTB unless a client account has been disabled such as upon request of the taxpayer. The access is limited to viewing notices and correspondence regarding any and all tax years that were sent within the last 12 months.

If a tax professional requests full online account access, the taxpayer must approve this authority before such access is granted. Once full online account access is granted, the tax professional with TIA authorization may view information for all tax years, including:

• Account balance and tax year details
• Estimated payments and credits
• California wage and withholding information (for individuals only)
• Notices and correspondence
• Account history
• Compliance status

POA

A POA enables tax practitioners to access tax account information and act on behalf of their clients in FTB matters. A POA is authorized for the tax year(s) specified on the POA declaration and is generally valid for 6 years unless it is otherwise revoked.

When we approve a POA declaration, we automatically grant tax professionals limited online account access to their clients' information in MyFTB unless a client account has been disabled such as upon request by the taxpayer. With limited online account access, a tax professional with POA authorization may view notices and correspondence sent from us in the last 12 months for the tax year(s) specified on the POA declaration.

If a tax professional requests full online account access, the taxpayer must approve this authority before such access is granted. Once full online account access is granted, the tax professional with POA authorization may view information and take action for the tax year(s) specified on the POA Declaration, including:

• View images of tax returns.
• Protest a proposed assessment.
• Respond to a proposed assessment by requesting a 30-day deferral in order to file a tax return.

Refer to Submit a TIA and Submit a POA for additional guidance.

Additional Information for Online Account Access

If multiple POA and/or TIA relationships exist between a client and a tax professional, the most recent online account access authorization will override any existing online account access authorization level for that tax professional.

Online account access authorization does not affect the information a tax practitioner with POA or TIA authority can receive over the phone, via secure chat, in person, and in writing.

Online account access is not available for fiduciary or 540NR group nonresident return accounts.

Best Practices to Amend Corporate Tax Returns

The following tips will help ensure your or your client's corporate amended return is filed accurately.

Tips and Best Practices

• File online through your tax representative or tax preparation software. Electronic filing programs catch many errors before the return is submitted.
• File using Form 100X. This is the most effective way to accurately and timely process the return.Be sure to include an explanation as to why you are making changes to your original filing.

Avoid Common ErrorsTo Prevent Misapplied Payments

• Provide all available identification numbers for the entity (i.e., FEIN, SOS ID, or FTB assigned ID).
• Provide the full entity name exactly as registered with the Secretary of State or as previously filed. This is particularly helpful in cases where entities have similar names (i.e., Wall Street Bank I, Wall Street Bank III- New York, Wall Street Bank IV- South Dakota).

Avoid Common Errors

The most common errors include:

• Amended Returns - Incorrect amounts transferred from original return to amended return.
• Payments and credits - Amounts either incorrectly added or subtracted from total tax.
• Estimated tax transfer - Incorrect refund amount transferred from previous tax year.
• Credits - Claimed amounts miscalculated due to income limitations or computation errors.
• Estimated tax payments - Claimed amounts do not match FTB records.
• Tax - Wrong amounts selected from the tax table on paper returns.

Organized tax records make preparing a complete and accurate tax return much easier. A MyFTB account greatly assists with organizing your records. You can review estimated tax payments, credits, and previously filed tax return information all on your desktop. The ability to readily review this information helps avoid many of the above errors.

Go to Due dates for Businesses for more information.

Personal and Business Notices

FTB will send a notice or letter for issues that may include, but are not limited to

• A balance due.
• A larger or smaller refund due.
• To notify of delays in processing of a return.
• To clarify a question about a tax return.
• To request additional information.
• To notify of a change made to a return.

Responding to a Notice

Notices contain valuable information to help resolve an account. If you agree with a notice or letter, you don’t need to contact us. If you need to respond as outlined, follow the instructions on the notice and respond by mail, fax, or online. If a balance due is expected, we recommend you make a payment for as much as you can.

A copy of the notices should be kept for later use. Tax account information and online services are available in a MyFTB account.

Common Notices

Visit the Letters page to view a list of common personal and business notices and learn about why you received a notice and what you need to do.

Internal Revenue Service (IRS) Updates and More

We partnered with the IRS to provide monthly IRS articles to assist our tax professional and small business communities. We are excited to share this information; however, if you have questions about the content, you will need to contact the IRS directly.

Dirty Dozen: High-income filers vulnerable to illegal tax schemes; face risk from improper art donation deductions, charitable remainder annuity trusts, monetized installment sales

IR-2024-104, April 10, 2024 – As part of the Dirty Dozen campaign, the IRS warned wealthy individuals about three tax traps designed for them by dishonest promoters and shady tax practitioners.

IRS Free File can help those with no filing requirement get overlooked tax credits, refunds; extension requests also available

IR-2024-103, April 10, 2024 – The IRS encourages low-to moderate-income individuals and families, especially those who don’t normally file a tax return, to use IRS Free File to prepare their federal tax return and get potentially overlooked refunds and tax credits.

Treasury, IRS issue guidance on the credit for the production of clean hydrogen and the election to treat clean hydrogen production facilities as energy property

IR-2024-102, April 10, 2024 – The Treasury Department and IRS issued guidance for the collection of information for taxpayers to request an emissions value from the Department of Energy (DOE) to petition the Secretary of the Treasury for a determination of a provisional emissions rate (PER).

Dirty Dozen: IRS warns tax pros, businesses to be cautious of ongoing spear phishing attacks to gain sensitive information; warns of surge in "new client" scams

IR-2024-100, April 9, 2024 – As part of the Dirty Dozen tax scams effort, the IRS urges tax professionals and other businesses to remain vigilant and protect themselves agains5th IRS reminder: 2024 first quartert a continuing barrage of e-mail spearfishing attempts designed to steal valuable information.

Dirty Dozen: Taking tax advice on social media can be bad news for taxpayers; inaccurate or misleading tax information circulating

IR-2024-98, April 8, 2024 – On day eight of the Dirty Dozen tax scam series, the IRS warned about bad tax information on social media that can lure honest taxpayers with bad advice, potentially leading to identity theft and tax problems.

Treasury, IRS issue guidance on the tax treatment of amounts paid as rebates for energy efficient property and improvements

IR-2024-97, April 5, 2024 – The Department of Treasury and the IRS issued Announcement 2024-19 that addresses the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.

Dirty Dozen: IRS urges taxpayers to not fall prey to untrustworthy tax preparers; "ghost preparers" can disappear with taxpayer cash, information

IR-2024-96, April 5, 2024 – In day seven of the Dirty Dozen tax scam series, the IRS and Security Summit partners alerted taxpayers to be on the lookout for unscrupulous tax preparers who could encourage people to file false tax returns and steal valuable personal information.

IRS reminder to taxpayers affected by terrorist attacks in Israel: 2023 returns and payments are now due Oct. 7; other relief available

IR-2024-90, April 3, 2024 – The IRS reminded individuals and businesses affected by the terrorist attacks in the State of Israel that they have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions.

Ask the Advocate: Thank You, Tax Professional Community!

I would like to express my sincere gratitude to the tax professionals who participated in FTB’s recent MyFTB Customer Service Experience Survey. Your valuable feedback is instrumental to help FTB achieve its mission to provide excellent products and services.

Your responses confirm you value the many MyFTB self-service options such as the ability to check the status of payments and refunds, review client notices, and register for POA and TIA relationships.

Our FTB team designed the survey to understand your experience with MyFTB online self-service tools and their impact on how you interact with FTB and your clients. FTB will carefully review and consider your candid feedback to enhance the online self-service tools, benefiting both you and your clients.

One of FTB ‘s paramount foundational principles is to protect the privacy and security of taxpayer data. As FTB optimizes MyFTB and as the tax landscape evolves, FTB has the difficult task to strike a balance between taxpayer convenience, as well as to ensure taxpayer confidential data is secure. The survey feedback is helpful in achieving this critical balance.

Thank you again to all the tax professionals who took the time to participate in the MyFTB survey. Your insights are invaluable to FTB.