Steve Sims EA llc

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California Taxpayers that claimed Head of Household, the Franchise Tax Board may come a callin.... make sure you respond!

Note: Head of Household Qualification Requirements

https://www.ftb.ca.gov/individuals/hoh/qual-reqrmnts.shtml

Message from the Franchise Tax Board

Beginning in late September through October 2018, we will mail:

  • 5,000 HOH demand letters - These letters require taxpayers to complete and return form FTB 3532, Head of Household Filing Status Schedule.
  • 14,000 Notices of Proposed Assessment denying the tax year 2017 HOH filing status.

In addition, we will mail the following in December 2018:

  • 56,000 HOH education letters - These letters remind taxpayers of their requirement to attach form FTB 3532 to their tax return if they are claiming the HOH filing status for 2018, as well as ensure they meet the qualifications for claiming HOH.

If your clients receive an HOH demand letter requesting they complete and return form FTB 3532, they will need to respond by the due date on the letter to avoid incurring a penalty for failure to furnish information. If you determine they do not qualify for the HOH filing status, they should mark the “I do not qualify for head of household” box on the top of the HOH demand letter.

Our HOH audit staff will review the form FTB 3532 and related documentation to determine whether they qualify for the HOH filing status. If form FTB 3532 is incomplete or provides conflicting information, we may contact the taxpayer to resolve the issue. If we confirm they qualify for HOH filing status, we will mail an acceptance letter. Our tax-year specific acceptance letters only apply to the specific tax year examined and do not qualify the taxpayer for other tax years.

Taxpayers who fail to respond to our letters or whose responses indicate they do not qualify for HOH can expect to receive a Notice of Proposed Assessment disallowing their HOH filing status.

Taxpayers may choose one of the following methods to return the HOH information request and/or requested substantiation:

  • Log into MyFTB on our website to upload the HOH form FTB 3532 and/or substantiation. They will need their account number (FTB ID) from the top of their HOH letter or their social security number (SSN).
  • Mail the HOH form FTB 3532 and substantiation to:

FRANCHISE TAX BOARD

PO BOX 942840

SACRAMENTO CA 94240-5340

For more information about the HOH filing status, go to ftb.ca.gov and search HOH 2017.

Link: www.ftb.ca.gov/professionals/taxnews/Editions/2018/September.shtml#Article03

steve@stevesimsea.com