Individual filers who made 2020 extension payments after April 15, 2021 may have received the erroneous notice.

Some individual taxpayers have recently received notices from the California Franchise Tax Board (FTB) indicating an adjustment to their 2020 California tax return. The cause of many of these notices is that the FTB did not correctly process 2020 extension payments made after April 15, 2021 and on or before May 17, 2021 as 2020 tax payments. (The 2020 filing deadline was extended to May 17, 2021.) 

BPM has learned that the FTB is aware that the notices were issued in error. They have stated that they are working to correct the accounts of affected taxpayers and that taxpayers receiving erroneous notices are not required to take any action at this time. The FTB will be manually correcting the payment application issue, but will not send revised notices once the account has been corrected. Although, no further action is required from the taxpayer, you may wish to verify the correction was made through MyFTB.  

Below is the FTB’s communication on Nov. 9, 2021 regarding this issue: 

FTB was recently made aware of an issue that affects: 

2020 tax year returns that: 

  • Included an extension payment made after April 15, but on or before May 17, or 

  • Included a request to transfer an overpayment to the 2021 tax year  

As you are aware, due to the COVID pandemic, the filing due date was delayed to May 17, 2021. However, the extension payments, and requests to transfer an overpayment that were made after the normal April 15, filing due date but on or before May 17, were not processed by our system as current year payments or requests. We are working diligently to identify and correct these accounts. 

If you have questions regarding this matter or any tax notice, please reach out to your BPM tax advisor. 

BPM Private Client Services 

At BPM, we take our role as skilled advisor very seriously. By understanding your needs and goals, we are able to craft intelligent, personalized tax roadmaps that minimize your risks and maximize your peace of mind. With a body of seasoned tax professionals who utilize all the tools available to increase your savings, BPM's Private Client Services team can handle everything from tax return preparation, to comprehensive estate, gift and trust planning, to stock option and retirement planning. We have a track record of proven strategies, which we proactively apply to the diverse problems that our clients face.  

To learn more, visit our Private Client Services page. 

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