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Business Entity Audits

Posted by Admin Posted on Jan 30 2014

The FTB receives information from the IRS, EDD, BOE, financial institutions, cities, and other businesses, and matches this information against its tax records.

In July, the FTB announced they would be contacting 90,000 businesses that had not yet filed a 2011 tax return and that were presumed to have a filing requirement.

Businesses contacted by the FTB will have 30 days to file a tax return or show why there is no filing requirement. Taxpayers who do not file tax returns or demonstrate that they are not required to file will receive a tax assessment based on income and other information that was reported to the FTB.

Businesses who receive such a notice from the FTB can request more time to respond, gain more information, and request tax forms through the FTB's website, or by calling: In 2012, the FTB collected approximately $23 million from businesses that had initially failed to file a tax return.