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Just-Lisa-Now-
Intuit Community Champion
June 14, 2022
Solved

FTB notices, therye adding the Federal NOL back to CA twice!

  • June 14, 2022
  • 5 replies
  • 24 views

Another preparer in town is seeing the same notices, we both use ProSeries, so Im not sure if this is some weird software snafu or if FTB has just gone cuckoo.

This topic has been closed for replies.
Best answer by abctax55

@Just-Lisa-Now- 

Lisa, did you get the Spidell flash alert regarding this issue?  

Incorrect FTB and IRS notices being sent to taxpayers (06-15-22)

FTB

The FTB has confirmed that due to a software company’s error, approximately 13,000 returns did not properly subtract federal NOL adjustments from taxpayers’ California AGI. This has generated a number of notices to taxpayers, and many practitioners have reported contacting the Tax Practitioner Hotline to resolve these issues. The FTB is working directly with the software provider to resolve the issue, and the FTB is manually correcting the returns of all impacted taxpayers. The correction and updated information will be displayed on the taxpayers’ MyFTB accounts by the end of June. There is no further action required on the part of taxpayers or practitioners.

5 replies

Just-Lisa-Now-
Intuit Community Champion
June 14, 2022
Posted on the caltax.com boards, looks like FTB is spewing them out to everyone!
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
abctax55
abctax55Answer
Level 15
June 15, 2022

@Just-Lisa-Now- 

Lisa, did you get the Spidell flash alert regarding this issue?  

Incorrect FTB and IRS notices being sent to taxpayers (06-15-22)

FTB

The FTB has confirmed that due to a software company’s error, approximately 13,000 returns did not properly subtract federal NOL adjustments from taxpayers’ California AGI. This has generated a number of notices to taxpayers, and many practitioners have reported contacting the Tax Practitioner Hotline to resolve these issues. The FTB is working directly with the software provider to resolve the issue, and the FTB is manually correcting the returns of all impacted taxpayers. The correction and updated information will be displayed on the taxpayers’ MyFTB accounts by the end of June. There is no further action required on the part of taxpayers or practitioners.

HumanKind... Be Both
Level 3
June 15, 2022

Just talked to the FTB.  According to the FTB Intuit showed the NOL as a positive number instead of a negative number.  Could Intuit be that Software Company in Spidell's notice.

Level 3
June 16, 2022

I talked to someone at FTB earlier today and she said it is a ProSeries error.  She said she knew of at least 500 returns with this problem but she the number was being updated and thought it would be higher.

Just-Lisa-Now-
Intuit Community Champion
June 16, 2022
Just saw the program alert across the top of the program.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
abctax55
Level 15
June 16, 2022

No banner on Lacerte... so sounds like just a PS issue.

HumanKind... Be Both
Level 3
June 17, 2022

At least two of my 400 clients received such a notice. Something similar happened many years ago with trust returns. Have not heard anything from ProSeries on this issue. But I'm not surprised as ProSeries customer service has really plummeted in the past year.

Just-Lisa-Now-
Intuit Community Champion
June 17, 2022
Yellow banner alert across the top of the program yesterday.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 3
June 17, 2022

Three days late and $18k short.

Level 2
July 14, 2022

I have gotten those notices too, BUT, I am getting the similar CA AGI doesn't match the IRS AGI on returns that don't have NOL issues, but I have entered an expense number on those last three lines of the other income form. like sometimes a1099 is incorrect and the issuer won't fix it, or a w-2 was amended, and they forgot to notify the state or a coding error on a 1099R that the issuer won't correct. Only about 5 out of 400 returns, but I think the issue goes beyond just NOLs because the federal other income form was redesigned. If the FTB said we have disallowed the other income form expense you claimed, that's one thing, but these notices are worded like the NOL notices. No explanation just appears the FTB isn't reading info entered on the federal form. I even got one where I entered the 1099 box 3 other income on the proper line and the FTB reduced their AGI by that amount. Anyone else see this??

Just-Lisa-Now-
Intuit Community Champion
July 15, 2022

Did you see the most recent alert about FTB and returns with amount listed as Other Income?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 15
July 15, 2022

I think it is funny that notice says they have identified "one or more" returns that had a problem.  Do they seriously think we believe they only noticed ONE return that had a problem?

Level 2
July 22, 2022

Hey, any update on the CA AGI doesn't match IRS AGI issue. Clients are getting second notices now and Intuit support cannot speak English. And it takes CA 6 months to answer a letter. Been doing this since 1981 and have no idea what to do on this one. Anyone????? Thanks, Lisa, if you have any ideas. 

Just-Lisa-Now-
Intuit Community Champion
July 22, 2022
Ive only had 1 that got a second notice so far. FTB still seems to say theyre handling this all themselves and should be done by the end of July, but we sent a short explanation letter in with the last notice, explaining this issue, made the client feel better.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪