FTB Notices

An FTB Notice can be a written statement regarding a procedure that affects taxpayers or other members of the public under the Revenue and Taxation Code (R&TC), related statutes, or regulations. In these circumstances, an FTB Notice is equivalent to an IRS Revenue Procedure.

An FTB Notice can also be a written statement that is issued to provide information concerning well-established principles, recent statutory changes, recent court decisions, new or revised FTB publications, proposed regulations or other matters that should be brought to the attention of the public. In these circumstances, an FTB Notice is equivalent to an IRS Notice or Announcement.

We list all FTB Notices by year and update the list when new notices are published.

2024

2023

  • FTB Notice 2023-03 – Extension of Notice 2023-02 Participation Period to January 31, 2024.
  • FTB Notice 2023-02 – Notice to announce a process that will allow Eligible Taxpayers to resolve Eligible Transactions that may be subject to the non-economic substance transaction understatement penalty under Revenue and Taxation Code section 19774 by providing reduced penalties.
  • FTB Notice 2023-01 – To clarify the reporting requirements for the “Analysis of partner's tax basis capital account” on Schedule K-1 (565) and Schedule K-1 (568) for taxable years 2021, 2022, and subsequent tax years.

2022

  • FTB Notice 2022-02 – To inform limited liability companies (LLCs) and the public that the parties have entered into a proposed settlement of the above-referenced class action litigation (the Settlement).
  • FTB Notice 2022-01 – Capital Account Analysis Tax Basis Methodology for Schedule K-1 (565) and Schedule K-1 (568) for Taxable Year 2021 and Subsequent Tax Years

2021

  • FTB Notice 2021-01 – Procedures to Provide Alternative Identifying Information for Certain Dependents under RTC 17054(d), related to Claiming Dependent Exemption Credits

2020

2019

  • FTB Notice 2019-08 – Correction to FTB Notice 2019-06
  • FTB Notice 2019-07 – Automatic Seven–Month Extension – Forms 100 and 100W
  • FTB Notice 2019-06 – Process for Establishing a Limited Partnership is Disregarded for Federal Income Tax Purposes
  • FTB Notice 2019-05 – Imposing the Failure to Withhold Penalty Against Qualified Intermediaries Who Actively Participate in Certain Improper Like-Kind Exchange Transactions
  • FTB Notice 2019-04 – Procedures to make an Election under California Revenue and Taxation Code Section 17859, related to Technical Terminations
  • FTB Notice 2019-03 – Procedures to make an Election under California Revenue and Taxation Code Section 17563.51, 17564, 24422.3, 24652, 24652.6, 24654, 24673.2, and/or 24701, related to Small Business Method of Accounting
  • FTB Notice 2019-02 – Treatment of Water's Edge Elections after change in law for taxable years beginning on or before December 31, 2020
  • FTB Notice 2019-01 – Internal Revenue Code Section 367 and Related Regulations Applicable to California Revenue and Taxation Code Section 24465

2018

  • FTB Notice 2018-03 – Filing Requests Regarding Defective Credit Assignments
  • FTB Notice 2018-02 – Taxpayer Representation with Respect to California Revenue & Taxation Code section 25137 Petitions Initiated by FTB Staff; supplements FTB Notice 2017-05
  • FTB Notice 2018-01 – Processing of docketed protests; supersedes FTB Notice 2006-5 and 2006-6 (Oct. 27, 2006)

2017

  • FTB Notice 2017-05 – Taxpayer Representation with Respect to California Revenue & Taxation Code section 25137 Petitions Considered by FTB Staff
  • FTB Notice 2017-04 – Treatment of Water's Edge Elections after change in law for taxable years beginning on or before December 31, 2017
  • FTB Notice 2017-03 – Changes in Accounting Method Involving Depreciation or Amortization
  • FTB Notice 2017-02 – Procedure to Request Late Payment Penalty Relief, Amendments to Regulation section 25136-2
  • FTB Notice 2017-01 – Notifications, Court of Appeal Decision in Swart Enterprises, Inc. v. Franchise Tax Board

2016

  • FTB Notice 2016-05 – Notifications, Notices and Requests under Regulation Section 19195-1
  • FTB Notice 2016-04 – Extension of Time for Filing Returns for Taxpayers Subject to the Corporation Tax Law
  • FTB Notice 2016-03 – Processing of Cases Raising the Compact Election Issue After the United States Supreme Court Denied the Petition for a Writ of Certiorari in The Gillette Company v. Franchise Tax Board
  • FTB Notice 2016-02 – Treatment of Water's Edge Elections after change in law
  • FTB Notice 2016-01 – Action on Cases Involving the Compact Election Issue After the Decision of the California Supreme Court in The Gillette Company v. Franchise Tax Board

2014

2013

  • FTB Notice 2013-02 – Filing of Notices Required Under Revenue and Taxation Code Section 19089

2012

  • FTB Notice 2012-03 – Implementation of Court of Appeal's Decision in Cutler v. Franchise Tax Board (2012) 208 Cal. App. 4th 1247
  • FTB Notice 2012-01 – Filing Protective Claims for Refund to Raise the Compact Election Issue Currently Pending in Gillette v. Franchise Tax Board

2011

  • FTB Notice 2011-06 – Chief Counsel Rulings for “Doing Business”
  • FTB Notice 2011-04 – Abusive Tax Shelters - California Listed Transactions - Circular Cash Flow
  • FTB Notice 2011-02 – BOE Formal Opinion in Appeal of NASSCO, 2010–SBE–001 (November 17, 2010)
  • FTB Notice 2011-01 – Abusive Tax Shelter – California Listed Transactions – Abusive Sales Factor Manipulation

2010

2009

  • FTB Notice 2009-09 – Reliance Upon Written Advice – Relief Under Taxpayers' Bill of Rights
  • FTB Notice 2009-08 – Franchise Tax Board Ruling Guidelines
  • FTB Notice 2009-04 – Processing Limited Liability Company Fee Claims for Refund as a Result of Ventas Finance I, LLC v. Franchise Tax Board (2008) 165 Cal.App.4th 1207
  • FTB Notice 2009-03 – Large Corporate Understatement Penalty — Payments and Amended Returns for the 2003-2007 Taxable Years (posted on 03/27/09)
  • FTB Notice 2009-02 – Exemption from Contractual Protection Reportable Transaction Disclosure and Reporting Rules for California Enterprise Zone Hiring Credits, (posted on 03/26/09)
  • FTB Notice 2009-01 – Disclosure of Deferred Intercompany Stock Account (DISA) Balance on CA Corporate Tax Returns (REVISED on 02/25/09 to add due date)

2008

  • FTB Notice 2008-5 – California Income Tax Treatment and Tax Return Filing Obligations of Same-Sex Married Couples
  • FTB Notice 2008-4 – Resolution of Bogus Optional Basis (BOB) Transactions and Certain Employee Stock Ownership Plan (ESOP) Transactions
  • FTB Notice 2008-3 – AB 897 Implementation – Issuance of Exempt Acknowledgment Letter
  • FTB Notice 2008-2 – Processing Limited Liability Company Fee Claims for Refund as a Result of Northwest Energetic Services, LLC v. Franchise Tax Board (2008) 159 Cal.App. 4th 841
  • FTB Notice 2008-1 – Reporting Requirements Pursuant to Revenue and Taxation Code Section 18628; Conformity to Treasury Regulation Section 301.6111-3, Effective August 3, 2007

2007

2006

  • FTB Notice 2006-4 – Withdrawal of Legal Ruling 376
  • FTB Notice 2006-3 – Effect of Microsoft Corp. v. FTB (2006) _____Cal.4th _____ on FTB Notice 2004-5
  • FTB Notice 2006-1 – California Tax Shelter Resolution Initiative – California's Program for Participants in Internal Revenue Service (IRS) Settlement Initiative

2005

  • FTB Notice 2005-7 – Information Reporting Requirements for Material Advisors Pursuant to Revenue and Taxation Code Section 18628, as Amended by AB 115; Conformity to IRC Section 6111
  • FTB Notice 2005-6 – 2005 Legislation: Conformity to IRC Section 6603 Tax Deposit Procedures; Cash Bond Procedures Repealed; FTB Notice 1999-9 Superseded in Part
  • FTB Notice 2005-5 – Installment Agreements for Business Entities
  • FTB Notice 2005-4 – Interest Suspension on Amended Returns – FTB Will Follow IRS Revenue Ruling 2005-4

2004

  • FTB Notice 2004-9 – Specialized Tax Service Fees
  • FTB Notice 2004-7 – 2004 Legislative Change – Include Limited Liability Companies and Their Owners as Qualified Entities Under the Voluntary Disclosure Program
  • FTB Notice 2004-6 – Election Under AB 263 With Respect to Dividends From Eighty Percent or More Owned Insurance Companies
  • FTB Notice 2004-5 – Asserting a Revenue and Taxation Code Section 25137 Variation in an Original Return Filing: Accuracy-Related Penalties
  • FTB Notice 2004-2 – Implementation of New Water's-Edge Election Statute
  • FTB Notice 2004-1 – Tax Shelter Reporting and Registration

2003

  • FTB Notice 2003-10 – REPEAL OF THE MANUFACTURERS' INVESTMENT CREDIT (MIC)
  • FTB Notice 2003-9 – Revenue Procedure 2003-33 – Automatic Extensions to Make Internal Revenue Code Section 338 Elections
  • FTB Notice 2003-7 – Withdrawal of Obsolete Legal Ruling
  • FTB Notice 2003-6 – Procedures for Making the Election to Defer Certain Gain from the Sale of Qualified Small Business Stock
  • FTB Notice 2003-5 – 2001 Legislative Changes – Informal Refund Claims
  • FTB Notice 2003-3 – Manufactures' Investment Credit: Ready-Mixed Concrete and Cement Trucks
  • Legal Ruling 2001-4 Withdrawn
  • FTB Notice 2003-1 – Effective Dates – Overpayments on Prior Year Returns Legal Ruling 94-4 Withdrawn

2002

2001

2000

  • FTB Notice 2000-9 – At its meeting on September 19, 2000, the Franchise Tax Board adopted a policy regarding the application of section 24344, subdivision (b), of the California Revenue and Taxation Code in light of the United States Supreme Court's decision in Hunt-Wesson, Inc. v. Franchise Tax Board, 120 S. Ct. 1022 (2000)
  • FTB Notice 2000-8 – Request for Changes in Accounting Periods or Methods
  • FTB Notice 2000-7 – Audits Standards.
  • FTB Notice 2000-5 – Limited Liability Company Fee for 2000

1999

1998

  • FTB Notice 1998-10 – IRS Revenue Procedure 97-44
  • FTB Notice 1998-7 – 1997 Tax Law Changes Enacted In 1998
  • FTB Notice 1998-6 – Subject: Increased Interest On Large Corporate Underpayments FTB Notice 1991-5 Modified
  • FTB Notice 1998-5 – Subject: AB 713 – Interest Abatement Requests
  • FTB Notice 1998-3 – Subject: S Corporations – Change In Accounting Method From Bad Debt Reserve for Banks, Savings and Loan Associations, and Financial Corporations

1997

  • FTB Notice 1997-8 – Subject: Refund Claims: Full Payment Of Tax, Penalties and Interest (September 4, 1997)
  • FTB Notice 1997-4 – Subject: Legal Ruling 402 Withdrawn (June 2, 1997)
  • FTB Notice 1997-2 – Subject: Combined Reporting Treatment of Parent's Gain From Nondividend Distributions in Excess of Basis (February 21, 1997)

1996

  • FTB Notice 1996-5 – Subject: California Nonconformity To Recent Federal Legislation (December 6, 1996)
  • FTB Notice 1996-4 – Subject: Financial Corporation Offset; Clarification Of Legal Ruling 89-1 (October 3, 1996)
  • FTB Notice 1996-3 – Subject: IRS Revenue Procedure 96-31 (September 20, 1996)
  • FTB Notice 1996-2 – Subject: FTB Form 3565, Small Business Stock Questionnaire (May 6, 1996)

1995

1994

  • FTB Notice 1994-9 – Subject: Employer Child Care Program / Contribution Credit Salary Reduction Agreements Statutory Changes Made by AB 3144 (Stats 1994, Ch. 748) Legal Ruling 93-1 Superseded and Replaced
  • FTB Notice 1994-8 – Subject: Franchise Tax Board Audit Manuals
  • FTB Notice 1994-6 – Subject: Revenue Procedure 92-20
  • FTB Notice 1994-4 – Subject: Deductibility of the Michigan Single Business Tax
  • FTB Notice 1994-2 – Subject: Deductibility of Points by Purchase of Homes

1993

  • FTB Notice 1993-8 – Subject: Qualified Settlement Funds – Elections, Penalties, Procedures, and Filing
  • FTB Notice 1993-7 – Subject: Election of Senate Bill 671 on Water's-Edge Election
  • FTB Notice 1993-6 – Subject: Statutory Changes Made by SB 3 (Stats 1993, Ch. 31) FTB Notices 93-2 and 93-3 Withdrawn
  • FTB Notice 1993-5 – Subject: Substantial Understatement Penalty – 18 CCR 25934.4
  • FTB Notice 1993-4 – Subject: Withholding on Nonresident Independent Contractors
  • FTB Notice 1993-1 – Subject: Protective Claims – Water's-edge Election Fees

1992

  • FTB Notice 1992-12 – Subject: Clarification of FTB Notice 1992-9; Substantial Understatement Penalty Guidelines
  • FTB Notice 1992-11 – Subject: Automatic Paperless Extensions, Bank and Corporation Tax Law
  • FTB Notice 1992-9 – Subject: Substantial Understatement Penalty Guidelines; Corporations Subject to IRS Coordinated Examination Program
  • FTB Notice 1992-7 – Subject: 1- Application of Revenue and Taxation Code Section 24405(c) 2- Application of Alternative Minimum Tax to Credit Unions
  • FTB Notice 1992-6 – Subject: Research and Experimental Expenditures
  • FTB Notice 1992-5 – Subject: Classifications of Organizations Limited Liability Companies
  • FTB Notice 1992-4 – Subject: Revised Diverse Business Audit Guidelines
  • FTB Notice 1992-2 – Subject: California Conformity to Federal Reporting Requirements. Relating to Certain Transfers to Foreign Persons (Internal Revenue Code § 6038B)

1991

  • FTB Notice 1991-5 – Subject: Increased Interest on Large Corporate Underpayments
  • FTB Notice 1991-3 – Subject: Automatic Paperless Extensions, Personal Income Tax Law
  • FTB Notice 1991-2 – Subject: Taxation of Contributions in Aid of Construction
  • FTB Notice 1991-1 – Subject: Questions and Answers on Withholding on Sales of Real Property by Nonresidents

1990

  • FTB Notice 1990-5 – Subject: Domestic (Nonforeign) Nonresident Partner Withholding Guidelines
  • FTB Notice 1990-4 – Subject: Corporate Estimate Penalty Exceptions; State-Federal Differences
  • FTB Notice 1990-3 – Subject: Sales Factor Throwback; Revenue and Taxation Code § 25135
  • FTB Notice 1990-1 – Subject: Withdrawal of Franchise Tax Board Audit Rulings

1989

  • FTB Notice 1989-713 – Subject: Proposed Unitary Business Regulations
  • FTB Notice 1989-601 – Subject: Announcement Re: Water's-Edge Election
  • FTB Notice 1989-004 – Subject: Combined Reporting
  • FTB Notice 1989-197 – Subject: Water's-Edge Election
  • FTB Notice 1989-110 – Subject: Mole-Richardson Inc. v. Franchise Tax Board Superior Court of Los Angeles County, No. C 554842
  • FTB Notice 1989-659 – Subject: Revisions to Published Franchise Tax Board Positions – Statutory Changes. FTB Notices 88-218, 88-315, 88-357, 88-711 and Legal Ruling 431 Modified
  • FTB Notice 1989-528 – Subject: Corporate Partners – Recomputation of Depreciation
  • FTB Notice 1989-364 – Subject: Homeowners Associations, California – Federal Differences
  • FTB Notice 1989-314 – Subject: Federal Gasoline and Special Fuels Credit – Internal Revenue Code § 34
  • FTB Notice 1989-129 – Subject: Computation of Distributive Shares, Limited Partnership Minimum Tax, S Corporation 2½% Tax