Last week CA FTB sends an $1100 refund check to a client that says its for 2016 (maybe an estimated payment we forgot to include on the 2016 return?)

[Just-Lisa-Now-]

Seems odd for them to wait for so long, but I guess it could happen.   

But then on Saturday client gets a bill for $1100 + $90 in penalty/interest for Tax Year 2018.

Client just called and told me about the refund check and bill this morning so I haven't had a chance to try and track down the discrepancy in 2016.

What the heck CA?  Do they have separate computer systems for each tax year that don't communicate with each other?

[abctax55 · Accepted solution]

Lisa, I *sure* you know to emphatically tell the client to NOT cash that check until all is resolved.

It sounds like the FTB coded the payment to the wrong year?

[Just-Lisa-Now-]

Its too late, he already deposited the check when he got it....he didn't call me until the bill arrived......ohhh maybe a 2018 estimated payment got coded as 2016 by FTB, thats gotta be it.  I guess we'll always be at the mercy of a data entry operator somewhere!

[abctax55]

Why am I not surprised...I try to train all clients to NOT cash an unexpected check from the government until they talk to me.  

[Just-Lisa-Now-]

Well my client couldn't find the 2018 payment voucher I provided him so he downloaded his own and it was a 2016 voucher  DUH!    So it wasn't the FTB that screwed up.  He's sending payment for the bill he received.