I received Notice of Proposed Assessment in CA for 2015. I was a student and unemployed. How do I show documentation supporting this?

[tiffineetheiller]

In June 2015, I graduated from college, I did not work when I was in school. After graduation I studied for state board and gained my professional license in late Nov. 2015. Due to the holidays and such I wasn't able to find a job until Jan 2016. The IRS assumed because I had a licence, I must of had income. Now they want documentation supporting my claim. What documentation do I provide?

[SweetieJean]

Any scholarships or grants?  How did you support yourself from June to Dec of 2015? Did your parents claim you as a dependent?

[Opus 17]

Firstly, if you got a notice from the franchise tax board, that's california state tax, not the IRS.  Secondly, it seems very unusual for any tax authority to assume you must have had income without any proof whatsoever.  Usually they go from records that are sent to them, such as copies of W-2s, 1099 forms, etc.  If you were not working at all, maybe you had a scholarship that was more than tuition -- that would be taxable income.  Or maybe someone stole your SSN and used it for their own work. You need to start by reading the letter carefully and figure out exactly why they think you had income.  If you really had no income and think it might have been ID theft, you would write them a letter explaining your situation.  (Also consider filing a police report, check your credit reports, etc.)

[SweetieJean]

Did your parents claim you as a dependent?

[tiffineetheiller]

No I did not have any scholarships, during school I lived off grants and loans, I went to a junior college so it was inexpensive and manageable. After school I lived with an elderly family member who provided room and board in exchange for basic help around the house. I check my credit report regularly and there is no activity to suggest my identity has been stolen. The letter stated " We received information from State Board (of my profession) that you held an active professional license in 2015. The average income for this occupation indicates you have sufficient income for a filing requirement"

[SweetieJean]

Your grant may be taxable;.

[Opus 17]

In that case simply write back explaining the circumstances.  You might include a copy of your license or letter from the licensing board showing that you only passed in November, and something from your current employer with your start date in 2016 on it (signed contract, first pay stub, etc.)  They should not have a problem believing that you had no other job between the two dates.