IRS, FTB, CDTFA, and EDD Tax Procedure FAQ
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California taxpayers and businesses may face several agencies at once. These answers distinguish the jurisdiction, record, and deadline for each common tax procedure.
How are IRS, FTB, CDTFA, and EDD disputes different?
IRS and FTB generally administer income taxes; CDTFA handles sales, use, and special taxes; EDD handles payroll tax and worker classification. Each has its own notices, appeal route, record, and deadlines.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
What should be done when a notice arrives?
Scan the entire notice and envelope, verify the tax period and taxpayer identity, calendar every stated date, obtain account records, and send a focused response with proof of delivery.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
When is Tax Court available?
Tax Court jurisdiction depends on a qualifying notice and timely petition. Paying first, seeking a refund, using IRS Appeals, and collection review are different paths.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
How can a levy or garnishment be challenged?
Confirm the assessment, notices, service, hearing rights, exempt property, financial condition, and collection alternative. Release, withdrawal, subordination, discharge, and hardship status are different remedies.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
Can penalties be removed?
Penalty relief may turn on statutory exceptions, reasonable cause, administrative programs, first-time history, and documentation. Relief from a penalty does not necessarily eliminate the underlying tax and interest.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
What records support a business-tax appeal?
Organize returns, ledgers, invoices, exemption certificates, bank records, payroll, contracts, entity documents, audit workpapers, correspondence, and a transaction-level schedule tied to the legal issue.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
What should be done first after a bank levy or wage garnishment?
Read the issuing order, identify the agency and periods, record the response date, gather payment and account proof, and document immediate necessary expenses. IRS and FTB relief standards and appeal paths differ; compare the IRS levy-release criteria with the FTB withholding-order guidance. Contacting the agency does not by itself preserve every review right.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
How should federal and California disputes be separated?
Maintain a matrix for IRS, FTB, CDTFA, and EDD showing the tax type, period, notice, asserted amount, forum, deadline, contact, filing, and next event. A federal audit result can affect a state return without making the procedures identical, and one payment plan or appeal does not automatically bind another agency.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
What proof is needed for deductions and mixed personal-business accounts?
Reconcile the return to books, bank and card statements, invoices, receipts, contracts, payroll, mileage, inventory, asset basis, and digital-platform records. Identify personal charges and support any allocation with a consistent method and contemporaneous business purpose. A spreadsheet is an index, not a substitute for source documents.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
What happens after an FTB or CDTFA assessment?
An FTB Notice of Proposed Assessment identifies a protest-by date and leads to written review and potentially an Office of Tax Appeals appeal; see the FTB protest instructions. CDTFA uses its own petition, conference, reconsideration, and OTA routes described in Publication 17. The controlling notice should be followed exactly.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
What if a filing or protest deadline was missed?
Preserve the notice and service record, determine exactly which deadline was missed, and assess late-election, refund, penalty-relief, or other available procedures. Reasonable-cause relief requires facts and documents; it is not automatic. Paying, requesting relief, and contesting liability can have different consequences.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
How should someone choose among a tax attorney, CPA, and enrolled agent?
Match the professional to the task: return preparation and accounting, administrative representation, legal advice, privilege, litigation, or possible criminal exposure. Ask about licensing, agency and court experience, conflicts, work allocation, fees, and coordination with existing preparers. No professional should promise a reduction without reviewing the record.
Practical next steps
- Reconcile the return or assessment to source records instead of sending an unindexed document dump.
- Identify the issuing agency, tax type, period, notice number, response date, asserted balance, and present collection status.
- Preserve the notice, envelope, fax or upload receipt, certified-mail proof, call notes, and copies of every submission.
Documents to gather
- returns and account transcripts
- notices and proof of service
- bank, payroll, ledger, invoice, and receipt records
- prior protests, appeals, payments, and agreements
Official resources
This page provides general information, not advice for a particular matter. Deadlines and available procedures depend on the governing notice, tribunal, and record.
Questions about your legal options?
Mishra X Trial Lawyers evaluates matters in this practice area. Call (949) 343-9735 or email office@mishrax.com.