Chat with an FTB Representative

Tax News
Some head of household e-filers receive erroneous NPAs

The Franchise Tax Board (FTB) recently became aware that some tax return preparation software inserted erroneous information on professionally prepared e-filed returns meeting these conditions:

  • Head of household filing status.
  • Schedule 4803, Head of Household Questionnaire attached.

Specifically, the software inserted incorrect answers for two questions on the Schedule 4803E:

  • Question 4 ("Did you provide more than one-half of the support for your qualifying person in 2005?").
  • Question 10 ("Was your qualifying dependent a citizen of the U.S., or a resident of the U.S., Canada, or Mexico?").

FTB issued Notices of Proposed Assessments (NPAs) dated September 14, 2006, and September 21, 2006, for HOH questionnaires meeting the above criteria.

Working with software manufacturers and tax preparers, we identified 3,275 taxpayers who received erroneous NPAs. We issued NPA withdrawal notices on October 4, and October 16, 2006.

If any of your clients received a head of household NPA dated September 14 or September 21 that met the conditions described above, and they have not received a withdrawal notice, follow the protest procedures shown on the NPA.