Notice of Proposed Assessment

A Notice of Proposed Assessment is the FTB’s written proposal that you owe additional tax, penalties, or interest — after an audit, or after an unanswered Demand for Tax Return. The FTB’s own page says it plainly: this notice is not a bill. It becomes one only if the Protest By date printed on the front passes with no action.

“Our review says the year shown owes more than was reported. This is a proposal, not a bill. You have until the Protest By date — 60 days — to pay it, or to tell us in writing exactly why we are wrong. If the date passes silently, the proposal becomes final and billable.”

A protest filed by that date keeps the assessment from becoming final; a protest does not stop interest, which only stops if the balance is paid in full within 15 days of the notice date. After a protest the FTB answers with a Notice of Action, and an appeal to the Office of Tax Appeals must be filed within 30 days of the date printed on that Notice of Action. If the Protest By date has already passed, the path the FTB describes is to pay the balance in full and then file a claim for refund.

• The Notice of Proposed Assessment, every page — the Protest By date is on the front
• The California return for the year at issue
• Any audit letters or Information Document Requests that led here
• Documents supporting each item you would dispute
• FTB publication 7275, the FTB’s own explanation of this notice for individuals

• Reading which adjustments drive the proposed amount and which are worth disputing
• Filing the protest by the date — online through MyFTB, or in writing with the facts and authorities the FTB asks for
• Representing you in the oral hearing a protest can include
• Weighing payment against a Pending Audit Tax Deposit (FTB 3576) to stop interest while the dispute runs
• Carrying the case to the Office of Tax Appeals if the Notice of Action affirms
• Filing the claim for refund if the protest window already closed — paid-in-full first, then the dispute continues by refund claim