BY DAVID FLAMER , CPA

The CalCPA Committee on Taxation recently met with the California Franchise Tax Board ( FTB ) during their annual FTB Liaison Meeting , where the FTB discussed its organizational activities , as well as answered questions submitted to it during the past year . The following are some highlights of the meeting .

2026-30 Strategic Plan

Members of the Finance and Executive services division explained the creation of the 2026-30 Strategic Plan , which , after receiving feedback from customers and other stakeholders , is scheduled to be released in December 2025 .

For a review of the 2021-25 strategic plan , visit ftb . ca . gov / about-ftb / strategic-plan-2021-to-2025 . html .

Benefits of FTB Self-Services

Members of the FTB Filing Division and Accounts Receivable Management Division tag-teamed a presentation regarding FTB Self-Services and the ease of doing business with FTB in

Responses to Questions from CalCPA Members

that fashion . It was clear that the FTB is guiding taxpayers in this direction a bit more firmly each year .

Currently , MyFTB ( ftb . ca . gov / myftb / index . asp ) can be used to assist in the following :

· Obtaining California wages and income tax withholdings , and estimated tax payments and credits amounts for a given tax year ;

· Responding to a Notice of Tax Return Change ( NRTC ) ( FTB 5818 );

· Providing audit responses ;

· Submission of audit support documents ; and

· Filing of a response to FTB Form 2520 , Notice of Suspension or Forfeiture . In 2025 , look for additional improvements and functionality within MyFTB , including :

· Management of business entity payment plans ;

· Submissions of offers in compromise ;

· Requests for voluntary administrative dissolution ; and

· Online views of liens , withholding orders and the ability to print tax computations .

FTB personnel also provided responses to specific questions provided to them by CalCPA members over the past year . Here are some highlights .

Pass-Through Entity Tax

Under the current tax law , a California PTET election is not allowed if the required June 15 estimated California PTET payment is not made timely . If that law isn ’ t going to change , can the FTB consider updating their internal procedures such that any California PTET payments made after that June 15 due date are automatically rejected and returned if the FTB shows no record of the requisite estimated PTET being made ? This should also apply in cases where a prior year return with a PTET election is subsequently filed , and it becomes clear that the requirement to pay in at least 50 percent of the prior year PTET was not met . Alternatively , will the FTB consider providing for an avenue for requesting PTET payments be returned ahead of the filing of the current year return in cases where the partnership can demonstrate it will not qualify to elect PTET for the year ? Without these options , the impact to partners who intended to elect PTET often poses a tremendous financial burden , as their funds are tied up with the FTB , but they need to come up with other funds to make the payments on their personal tax accounts .

Related to the above , will the FTB consider abating interest and penalties for underpayment of estimated taxes / extension in cases where an individual taxpayer can demonstrate that they transferred the required California payments to a partnership that intended to elect PTET and that partnership made a corresponding California tax payment , but it later came to light that the partnership would no longer qualify www . calcpa . org JANUARY / FEBRUARY 2025 CALIFORNIA CPA 15