California issues publication on nonwage audits

The California Franchise Tax Board (FTB) has released a new publication on its process for conducting audits of income tax withholding agents to determine if they are in compliance with California’s nonwage withholding requirements. The publication covers the following topics: the scope of audits; powers of attorney; record-keeping requirements; initial contact letters; field audit entrance interviews; providing requested business records; withholding forms obtained and reviewed; reference information; audit determinations; concluding audits; penalties and interest; what to do upon disagreement with the FTB’s audit findings (e.g., claims for refund, appeals, Taxpayers’ Rights Advocate review); and contact information. (FTB 936, California Franchise Tax Board, Nonwage Withholding Audit Process, September 2014.)

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