Answering the call: new FTB phone service working well.

• Author: Williams, Leonard W.
• Position: CATax

Some CPAs are pleased with the upgraded FTB voicemail phone-and-call-back service, which has been in place since June. One CPA related the following story that was endorsed by others.

He phoned the FTB on behalf of a client and got a recording, which said that his wait would be 18-32 minutes--or so. He was given the choice to either wait on the line or to leave his name and phone number, and someone would call him within this timeframe. He would not lose his place in line. He did as instructed, and received a return phone call within 20 minutes.

IRC Regulations When FTB Has None

While U.S. Circular 230, by its own terms applies at the federal level, California has a rule that, except where federal and California law differ, federal regulations will apply unless the FTB has its own regulations [Revenue and Taxation Code, Sec. 17024.5 (d) and 23051.5(d).].

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CA Tax Highlights from Tax Planning and Update Conference

There were two different speakers at two different times covering different aspects during this conference. Both were excellent. By the way, this year's conference generally was excellent, and a recording is available via CalCPA's website, www.calcpa.org/taxupdate. Note that you do not receive CPE for watching the recording.

Taxpayer Advocate Speaks

The following are highlights of FTB Taxpayer Advocate Steve Sims' conference presentation:

* If the TRS will abate a penalty but the FTB won't, appeal to the Taxpayer Advocate's Office.

* FTB accounts receivable have increased by $1 billion, and California refunds are way down.

* It is possible to do an installment agreement online if the balance due is $25.000 or less, and the account will be paid in 60 months or less.

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* When new income lax liabilities arise, for years other than the one(s) covered by the first installment agreement, the taxpayer must start over with a new agreement. The subsequent liability doesn't tack onto the prior agreement.

* In establishing the dollars available to discharge a tax liability, the FTB can't go less than the IRS' figures for food allowances.

* The FTB is behind about 10 months on processing amended returns.

* In light of the above fact, if an amended return is filed, wiping out the balance due on the original return, tell that to the person in Collections who you're dealing with, who can then furnish a copy of the 540X.

* Monitor liens carefully. About 14 percent are issued in error, and the FTB is...