So they took too long to assess additional tax....Request for Interest Abatement!
Interest Abatement – Based on Franchise Tax Board Errors or Delays
The law only allows FTB to abate interest for FTB errors or delays under the following circumstances:
• The interest accrued on a deficiency or a proposed deficiency was attributable in whole or in part to any unreasonable error or delay by an officer or employee of the Franchise Tax Board (acting in his or her official capacity) in performing a ministerial or managerial act.
• The interest accrued on a payment of any liability was attributable
to an officer or employee being dilatory in performing a ministerial or managerial act.
• The interest accrued on a bill or notice that FTB delayed due to a governor state of emergency or federal major disaster declaration.
• The interest at issue accrued after September 25, 1987, without regard to the tax year.
• For managerial acts, the interest at issue accrued for tax years beginning on or after January 1,1998.
• No significant aspect of the delay or error was attributable to the taxpayer.
• The error or delay occurred after the date FTB first contacted the taxpayer, in writing, with respect to the deficiency or payment.
A general allegation that the issuance of an assessment took too long will not in itself justify the abatement of interest if the assessment was issued within the statute of limitations. Generally, FTB has four years from the return filing date or due date, whichever is later, to make an audit adjustment and issue an assessment.
Interest Abatement – Based on IRS Errors or Delays
The law only allows FTB to abate interest for IRS errors or delays when the IRS abated interest under the following circumstances:
• The interest accrued is attributable to an error or delay in the performance
of a ministerial or managerial act by the IRS.You must provide proof that the IRS abated interest under Internal Revenue Code Section 6404(e) and the period that the IRS abated interest.
• The error or delay must have occurred on or before the IRS issued a final determination of tax.
• The deficiency upon which the federal interest abatement was allowed must be related to the state deficiency.
• The interest at issue accrued after September 25, 1987, without regard to the tax year.
For managerial acts, only interest accrued for tax years beginning on or after January 1, 1998, may be considered.
Click here for more information:
https://www.ftb.ca.gov/forms/misc/3701.pdf