Unverified Wage Withholding – Possible Changes to Tax Returns

During the period from March 8, 2019 to March 11, 2019, a system error on the Franchise Tax Board (FTB) side caused them to issue refunds to approximately 23,500 taxpayers without first verifying the claimed wage withholding.  This may have led to the taxpayer’s withholding being increased or decreased incorrectly.  Additionally, the taxpayer may have received a Notice of Tax Return Change with an incorrect explanation of the adjustment.

In order to correct this error, in the coming weeks the FTB is going to review each potentially impacted account and ensure that the proper amount of withholding is applied.  This may result in a change to the refund received.  If the affected taxpayer did not receive a refund, either an accurate bill will be mailed to them, or they will receive the refund that they are due.

The FTB will be contacting affected taxpayers directly beginning the week of April 22nd.  At that time, they will request additional information, if needed.

The FTB apologizes for any inconvenience this may have caused. SSF would like to ask that if you do receive a letter or refund from the FTB to contact us for verification before responding or cashing any checks.

For more information or questions, please contact us at (925) 271-8700 or info@ssfllp.com.