California Taxpayers: Your IRS Notice and the Franchise Tax Board

Start with the letter in your hand

Say you are a freelance designer and a CP2000 arrives saying the income reported by your clients does not match your return. That letter comes from the IRS, and the federal guides on this site apply to it. The IRS describes a CP2000 as a proposed change, not a bill, and it asks for a reply by the date printed on the notice.

Before you think about California at all, find that date, read what the IRS says it changed, and decide whether you agree. Our guide to the CP2000 notice walks through those steps.

Who the Franchise Tax Board is

California's tax agency is the Franchise Tax Board (ftb.ca.gov). It is a different agency from the IRS, with its own letters, its own contact channels and its own instructions.

Whether the Franchise Tax Board contacts you, when, and about what are questions only that agency can answer. This page does not try to predict it, and it does not describe California rules.

Two agencies, two sets of instructions

Treat each letter on its own terms. A reply to the IRS does not automatically answer a California letter, and the reverse is also true.

• Keep federal and California letters in separate folders.
• Note the sender, the notice number and the response date on each one.
• Answer each agency using the instructions it gave you.

Checking that a California letter is real

The IRS says it usually makes first contact by mail and that an unexpected call, text or social media message demanding payment or personal details is a warning sign. It is sensible to apply the same caution to anything claiming to be from California's tax agency.

Rather than using a phone number or link from the message, go to ftb.ca.gov yourself and look for the agency's own contact information.

Where a drafting tool fits

IRS Audit Defense Pro is software that helps you organize your facts and draft a response letter for your federal matter. You review it and send it yourself. It is not a substitute for reading the Franchise Tax Board's instructions, and it does not draft your state response.

If you are unsure

If the two letters seem to overlap and you cannot tell what each agency wants, a licensed professional such as a CPA, enrolled agent or tax attorney can look at your actual papers. Our guide on when to hire one explains the differences.

Frequently asked questions

Sources

• State of California Franchise Tax Board
• Understanding your CP2000 series notice (IRS)
• How to know it's the IRS (IRS)

Related guides

• How to respond to an IRS notice, step by stepRead the whole notice, note the notice number and the response date, confirm the letter is genuinely from the IRS, gather your records, decide whether you agree or disagree, then reply in writing by the date on the notice.
• You received a CP2000. Here is how to read it and replyA CP2000 is a proposal, not a bill and not an audit.
• Is This IRS Notice Real? How to Tell Before You RespondThe IRS usually makes first contact by U.S.
• Unreported income notice: how a mismatch happens and how to replyA notice about unreported income usually means a payer sent the IRS a form, such as a 1099-NEC or 1099-K, that does not match your return.
• An IRS Notice in New York: Keeping Federal and State Mail StraightThe IRS notice you received follows federal rules covered in our federal guides.
• Handling an IRS Notice Yourself or Hiring a ProfessionalYou can respond to many IRS notices yourself.