FTB Notices sent to Head of Household Taxpayers

Last week, the Franchise Tax Board (FTB) sent more than 140,000 audit letters to pre-selected individuals who used the “Head of Household” (HOH) filing status on their 2008 state tax returns.

The HOH filing status generally provides a lower tax assessment for unmarried taxpayers who cared for a dependent for over half the year and paid more than half the cost of maintaining their home. Taxpayers who do not qualify will have their tax reassessed at either a single or married-filing-separate filing status. More than 2 million California taxpayers use the HOH filing status each year.

FTB advises taxpayers who received an audit letter to promptly submit a completed questionnaire by using any of these methods:

• Go to FTB’s website ftb.ca.gov and use the HOH Audit Letter Web Response page. Taxpayers will need their Social Security number and the “FTB ID number” listed at the top of the questionnaire letter.
• Fax pages 3 and 4, and any supporting information to 866.223.8195.
• Mail the questionnaire using the pre-addressed envelope provided with the audit letter.

Failure to respond could result in a penalty. FTB provides an HOH “self-test,” answers to many frequently asked questions, and Publication 1540, “CA Head of Household Filing Status,” in English and Spanish on its Website at ftb.ca.gov. Feel free to contact us for additional information.