The Franchise Tax Board (FTB) has announced that it is mailing more than 83,000 letters to taxpayers asking them to justify the Head of Household (HOH) filing status claimed on their 2014 tax returns as part of an annual FTB filing status review. HOH filing status is for unmarried taxpayers who care for a child or other relative for more than half of a year and cover more than half of the household’s annual expenses. There are strict rules for determining whether a taxpayer qualifies for HOH filing status (for which the FTB provides an online guide and eligibility test), and taxpayers who are found not to qualify may owe additional taxes. Taxpayers receiving an FTB letter can respond by filling out the enclosed questionnaire and mailing it using the enclosed pre-addressed envelope, or by visiting the FTB website and clicking HOH Audit Letter Web Response. Taxpayers who fail to respond will have their tax liabilities recalculated, and may be charged a penalty. For our clients who receive one of the HOH letters from the FTB, we recommend that you contact us immediately so we can assist you with your reply. For the complete press release click here.
FTB to Review Head of Household Filing Status for 83,000 Taxpayers
About the Author: Jeff Belingheri
Jeff is a Partner at Bregante + Company LLP, providing tax, accounting and consulting services to closely held businesses and high net worth individuals throughout the greater San Francisco Bay Area.