TAX NEWS - FEBRuary 2010
California Tax: FTB Extends the Filing Season Notice Delay
Notice Hold Periods
Notice type 2008 2009
e-file STDs 1/01 - 5/3 1/01 - 5/29
paper STDs 3/21 - 5/3 3/20 - 5/29
e-file RINs 4/10 - 5/3 3/20 - 5/29
Note: STDs related to electronic returns are held earlier because it is expected that e-filers know they owe the balance due and intend to pay by April 15. RINs related to paper returns are not held as these taxpayers do not usually know about the balance due.
To minimize the impact to our call center, we spread the release of notices over three weeks once the delay period ended. Extending the notice delay and the subsequent delayed release caused up to 358,000 initial notices to be mailed later than if the notice delay had not been extended. The additional delay for individual taxpayers ranged from one day to three months. Many of these taxpayers received increased monthly late payment penalties, interest, or both. The average additional monthly penalty for those taxpayers was $11 and the average additional interest was $6. Extending the notice delay prevented approximately 18,500 incorrect notices.
Feedback regarding the extended delay was generally positive. With the reduction of incorrect notices and the positive feedback, we decided to extend the notice delay period permanently.