CA FTB is requesting a 2016 personal return - can this affect my 2018 return?

meditationman · ‎August 12, 2019

My 2018 Federal / State returns have been accepted & are estimated to be in my bank account by 8/30/19 (via direct deposit) at the latest, according to TurboTax.

However, I'm worried because the California FTB just sent me a letter saying they need a return from me for 2016 and that I may owe taxes based on their records. The FTB's letter also gave a requested response date of 9/11/19 (after my expected return deposit on 8/30).

Will this affect the timely deposit of my 2018 return (i.e. will they withhold my return until I deal with 2016)? Or will the FTB only take collection action if I haven't filed by 9/11?

Thanks in advance for any insight & advice.

Kat · ‎August 13, 2019

First, you should respond to the FTB by the deadline date given you. This is very important.

As for your 2018 refund(s), it's doubtful that either refund will be affected by this notice from CA FTB. Typically, if there is past tax due, the state will send you a payment notice separately after your case has been finalized. That may take some time. If you end up owing more tax for 2016 than you paid, you'll be given the opportunity to make payment when that has been determined. If you DO owe taxes from 2016, it's best to go ahead and pay as soon as possible. Interest is being accumulated on any past-due taxes.

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

CA FTB is requesting a 2016 personal return - can this affect my 2018 return?

After you file