Franchise Tax Board (FTB) Overpayments Notices
If you have recently received FTB notices indicating either your 2019 California overpayments were not credited to 2020 or your 2020 estimated taxes were reduced, please note that these are likely erroneous notices generated by the system, and FTB is currently working on resolving the issues.
On December 20, 2020 we received a News Flash e-mail from Spidell Publishing Inc. letting us know that the FTB stated, “this situation happens every year for current year payments that are made after the normal 4/15 filing due date. While the 2019 filing due date was postponed to 7/15, our system did not read the 7/15 payments as timely. Therefore, the payment amounts must be manually applied to the current tax year, and the excess is transferred to the next year per the taxpayer’s request. Notices may be generated and sent out before the account is manually corrected.”
If you have received one of these notices, you don’t need to do anything because the account is now being corrected by the FTB.
If you have further questions regarding the above, please do not hesitate to contact us.