Receiving a Notice of Proposed Assessment (NPA) from the California Franchise Tax Board (FTB) can be intimidating. This formal notice indicates the FTB believes you owe additional taxes, which may include penalties and interest.This document often requires swift and strategic action to protect your rights and mitigate potential liabilities.
At NewPoint Law Group, LLP, our dedicated tax attorneys have extensive experience representing clients in Roseville, Placer County, and Sacramento County who have received Notices of Proposed Assessment. Our team understands how to navigate complex tax laws and stand up for your best interests. Below, we explore what a Notice of Proposed Assessment means, what steps to take if you receive one, and how our firm can help you resolve your tax matters effectively.
What Is a Notice of Proposed Assessment from the FTB?
An FTB Notice of Proposed Assessment outlines the state’s intent to increase your assessed tax for a given year. Common reasons include:
Unreported or Underreported Income: If the FTB discovers discrepancies between income reported on your tax return and income reported to tax agencies by employers or other third parties, they may propose an additional assessment.
Incorrect Deductions or Credits:Overstating deductions, claiming ineligible credits, or simple math errors can trigger an FTB NPA.
Federal Adjustments: The FTB often receives information from the IRS. If the IRS adjusts your federal return, the FTB may also adjust your California return.
Audit Findings: If you have undergone an FTB audit and the examiner finds tax deficiencies, these will be reflected in a Notice of Proposed Assessment.
Why You Should Take an FTB Notice of Proposed Assessment Seriously
Ignoring a Notice of Proposed Assessment from the Franchise Tax Board can lead to:
Increased Penalties and Interest: Delays in responding or paying may cause your outstanding balance to grow substantially.
Collection Actions: The FTB has significant collection powers, such as wage garnishments, bank levies, and property liens.
Limited Rights to Appeal: Certain deadlines apply if you wish to dispute the proposed assessment; missing these deadlines can severely restrict your options.
By promptly seeking the help of a Roseville tax attorney with experience in Placer County and Sacramento County, you stand a much better chance of minimizing liabilities and resolving the issue on favorable terms.
How NewPoint Law Group, LLP Can Help
Our dedicated legal team focuses on representing taxpayers who receive notices of proposed assessments. We closely review the FTB’s findings and evaluate any underlying data or audit results to detect errors or miscalculations. Our attorneys advise on the best course of action, which may involve disputing the assessment, negotiating installment agreements, or exploring an Offer in Compromise. We communicate directly with the FTB on your behalf, ensuring all critical deadlines are met and that we protect your rights at every step.
Schedule a Consultation Today
Don’t let an FTB Notice of Proposed Assessment escalate into a larger financial burden. The sooner you take action, the better your chances of favorably resolving the issue.
Contact NewPoint Law Group, LLP for a confidential consultation to discuss your next steps. Our experienced tax attorneys are dedicated to protecting your rights and helping you find the most effective solution. Call us at (800) 358-0305.
Your business deserves a legal partner who understands your current needs and is equipped to evolve with you. NewPoint Law Group is ready to be that partner, ensuring that your legal foundation is as robust and forward-thinking at every milestone as your business itself.