FTB face time: COT-FTB annual meeting provides updates on hot topics.

• Author: English, Damien B.M.
• Position: Californiatax

The Tax Practitioner Hotline, e-filing and legislation were among hot topics recently discussed at CalCPA's Committee on Taxation liaison meeting with the FTB. Part of the meeting also included a Q & A session covering issues from bankruptcy treatment to dependency credits to penalty notices. A transcript of the Q & A will be available at www.calcpa.org/Content/24157.aspx later this month.

Tax Practitioner Hotline Lowdown

Over the past few years, the FTB has received many requests from tax professionals to accommodate the principal of "one and done," which means callers are no longer transferred or referred to the Accounts Receivable Management Division. The issues are now handled through the Tax Practitioner Hotline, which has increased its staff to 20 people, unless the account is specifically assigned to a collector or collection unit.

When contacting the hotline:

* Be prepared to give your client's account number and address.

* Remember the hotline is exclusively for the tax professional community. Clients who want to contact the FTB should call (800) 852-5711.

* Include a current Power of Attorney when faxing a request for a transcript.

* Keep in mind that it may take several business days before getting a response when ordering five or more years of transcript information.

The hotline is open 8 a.m.-5 p.m., Monday-Friday (except state and federal holidays). Call the hotline at (916) 845-7057 or fax to (916) 845-6377.

Avoiding E-file Errors

The FTB shared the most common reasons why individual and business e-file returns were rejected during the 2007 processing year (taxable year 2006).

A couple of the top error codes regarding individual e-file returns:

Error Code 679/680: Your/Spouse's or registered domestic partner's (RDP) Prior Year Adjusted Gross Income Amount (Field 0020) does not match FTB's records; therefore, you cannot sign your form electronically.

Tip: You can, however, still e-file your client's return. Complete and sign form FTB 8453, California e-file Return Authorization, and keep it in your files.

Error Code 900/902/903: Taxpayer SSN/DCN or Spouse/RDP SSN/DCN previously used on an e-filed return.

Tip: To avoid sending duplicate returns, do not retransmit an accepted California return when retransmitting a corrected federal return. If you discover the Social Security number on the accepted California return was incorrect, call the Tax Practitioner Hotline.

A top error code regarding business e-file returns:

Error Code...