Tax Defense
California FTB Audit Defense
Key Takeaway
An FTB audit is not the same as an IRS audit. California’s Franchise Tax Board uses
different procedures, different standards, and different settlement practices — and the penalties for mishandling the
process are severe.
An FTB Audit Letter Is Just the Beginning.
When the California Franchise Tax Board sends an audit notice, they’ve already reviewed your return and identified what they believe are discrepancies. The question isn’t whether they’ll find something — it’s how much they’ll try to assess.
FTB auditors are trained to maximize adjustments. They’ll request broad documentation, apply the strictest interpretations of California tax law, and push for the largest possible assessment. Without professional representation, you’re at a significant disadvantage.
We handle your FTB audit from the first response letter through final resolution. We know which documents to provide, which requests to push back on, and how to present your position in the strongest possible light.
From Our Practice
We’ve handled hundreds of FTB audits — from straightforward residency examinations to complex multi-year income adjustments. The FTB’s audit process is fundamentally different from the IRS, and understanding those differences is critical to protecting your position at every stage.
Talk to a Tax Attorney
Free 15-minute call. No obligation. We’ll tell you exactly where you stand.
What We Handle
FTB Audit Defense Services
Correspondence Audits
FTB desk audits conducted by mail. We craft strategic responses that provide exactly what's needed to resolve the inquiry without expanding the scope of review.
Field Audits
When FTB auditors want to examine your books in person, we manage the entire process — scheduling, document preparation, and representing you at every meeting.
Residency Audits
California's most complex and highest-stakes audits. We build comprehensive residency defense packages that document your domicile with irrefutable evidence.
Business Audits
FTB examinations of partnerships, S-corporations, and C-corporations. We defend against income adjustments, expense disallowances, and apportionment challenges.
Protest & Appeal
When the FTB issues an unfavorable assessment, we file protests and represent you before the Office of Tax Appeals to reverse their findings.
Penalty Defense
California penalties — late filing, late payment, accuracy-related, and fraud — can add 25-75% to your bill. We fight for abatement on every penalty.
Understanding the Process
FTB Audits: What to Expect
What triggers an FTB audit?
The FTB selects returns using data matching (comparing your return to W-2s, 1099s, K-1s, and other information returns), statistical models that flag unusual deductions or income patterns, and specific compliance initiatives.
Residency audits are triggered by events like filing a part-year return, vehicle registration changes, voter registration in another state, or tips from third parties.
What documents will the FTB request?
FTB audit requests are typically broad. They may ask for bank statements, credit card records, receipts, contracts, entity documents, and personal records like cell phone bills and travel itineraries.
We review every request and provide only what is required and strategically beneficial. Over-producing documents is one of the most common mistakes taxpayers make.
What happens if I disagree with the FTB's findings?
You have the right to protest a Notice of Proposed Assessment within 60 days. We file detailed protests supported by legal authority and documentary evidence. If the protest is denied, you can appeal to the Office of Tax Appeals (OTA).
OTA decisions are public and set important precedents. Having attorneys who understand this forum is critical to your success.
Can the FTB audit multiple years at once?
Yes. The FTB frequently expands audits to cover multiple tax years, especially in residency cases. If they identify an issue in one year, they’ll typically look at surrounding years too.
We work to contain audit scope and prevent multi-year expansions that can multiply your exposure.
Talk to a Tax Attorney
Not Sure Where You Stand?
or call (619) 378-3138
Why Brotman Law
California FTB Audit Defense That Gets Results
Hundreds of FTB Audits
We've represented clients in every type of FTB examination. Our experience gives us pattern recognition that solo practitioners simply don't have.
Residency Audit Experts
Our residency defense methodology has saved clients millions in proposed California tax assessments.
Strategic Document Control
We know exactly what to produce and what to protect. Document strategy is half the battle in an FTB audit.
OTA Hearing Experience
We regularly appear before the Office of Tax Appeals and know how to present winning cases.
Penalty Abatement
We pursue every available penalty defense and have a strong track record of reducing or eliminating FTB penalties.
Full-Service Defense
From audit through appeal, and from tax strategy to litigation — we handle every aspect of your California tax situation.
Learn More
California Tax Audit Guides & Resources
California FTB Defense
Our full California income tax practice — audits, disputes, and collections defense.
Read the Guide →Free GuideCA Tax Debt Resolution
If the FTB has assessed taxes you can't pay, learn about resolution options.
Read the Guide →Free GuideFree Tax Resources
Guides and articles to help you understand California tax law and your rights.
Read the Guide →Frequently Asked Questions
California FTB Audit FAQs
How long does an FTB audit take?
FTB
audits typically take 6-18 months, depending on complexity. Residency audits tend to take longer due to the volume of
documentation involved. We work to move audits forward efficiently while protecting your position.
Will I have to meet with FTB auditors in person?
In most cases, no. We handle all communication with the FTB on your behalf. For field
audits that require an in-person component, we attend every meeting and manage all interactions with the
auditor.
Can the FTB access my bank records?
Yes.
The FTB has broad subpoena power and can request bank records, credit card statements, and other financial documents.
We review all requests and challenge overly broad or irrelevant demands.
What is the statute of limitations for FTB audits?
The standard period is four years from the filing date or the due date, whichever is
later. For substantial understatements exceeding 25% of gross income, the period extends to six years. There is no
statute of limitations for fraud or non-filed returns.
Can I handle an FTB audit myself?
You
can, but we strongly advise against it. FTB auditors are trained to maximize assessments. Without professional
representation, you’re likely to provide too much information, miss important deadlines, or fail to assert available
defenses.
What if I can't afford to pay an FTB assessment?
We negotiate installment agreements, offers in compromise, and currently-not-collectible
status with the FTB. There are options available even when the assessed amount is substantial.
Related services
As Featured In & Recognized By
Get Started Today
Book Your Free 15-Minute Call
Schedule a brief call with our team to discuss your situation. We’ll assess where things
stand and outline your options — confidentially and without obligation.
- Completely confidential — protected by attorney-client
privilege - Every situation is different — you’ll receive a custom assessment
tailored to yours - Same-day and next-day appointments available