Sam Brotman, JD, LLM, MBA August 5, 2014 3 min read

Franchise Tax Board Settlements - Part Two

A taxpayer who wants to settle must submit a written request, which must include the following information:

1)Taxpayer’s name and current address;

2)Taxpayer representative’s name, current address, fax and telephone number;

3)Taxpayer’s Social Security number or taxpayer identification number;

4)Taxable year(s) involved;

5)Tax amount involved;

6)Present status of dispute (i.e., is it a protest, appeal, or claim for refund);

7)Copy of representative’s power of attorney (FTB form 3520), unless a valid

8)form is already on file with the FTB;

9)Good faith settlement offer (amount offered to settle), including the grounds in support of the offer;

10) Identification and discussion of all issues in contention, including legal and factual grounds for positions taken by the taxpayer; and

11) A listing of all Notice(s) of Proposed Assessment (NPA) and Claim(s) for refund for the taxable years involved that are not part of taxpayer's settlement request. Taxpayer must also provide the present status of each NPA(s) and Claim(s) for Refund and the amount(s) involved.

All settlement requests by taxpayers are reviewed by FTB Settlement Bureau staff who determines if the case is good candidate for settlement program. Then staff notifies taxpayer of their decision – to begin settlement negations or not. FTB usually negotiates if the dispute is real, but FTB is not required to accept it into settlement program. Usually FTB is more willing to negotiate is there is higher risk of litigation or taxpayer presents well-developed facts.

The settlement program provides expedited method of resolving civil tax disputes. Usually tentative settlement is reached within 9 months after taxpayer's settlement request and when settlement is reached, taxpayer must sign written agreement with terms of settlement. Settlements becomes final after approval by FTB for larger settlements and by Executive Officer for small settlements. If settlement is not reached within nine months, then the case is removed back into original pre-settlement status (protest, appeal or claim for refund).

CONTACTS: Taxpayers seeking additional information or desiring to initiate settlement of their civil tax matters in dispute should call or write (providing the required information set forth above) to:

Patrick J. Bittner

Director, Settlement Bureau, Mail Stop A270

Franchise Tax Board

P.O. Box 3070

Rancho Cordova, CA 95741-3070

Telephone: (916) 845-5624

Fax: (916) 845-4747

General Settlement Message Line: (916) 845-5034

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Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law

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