The California FTB 626 form is a request for the Franchise Tax Board's Chief Counsel to relieve specific penalties imposed under various sections of the Revenue and Taxation Code. Taxpayers can use this form to seek relief from penalties related to issues such as reportable transactions and frivolous returns. Each penalty requires a separate form, ensuring a clear and organized process for individuals and entities alike.
If you need to fill out the FTB 626 form, click the button below to get started.
In the realm of tax compliance, penalties can often create significant stress for individuals and businesses alike. The California FTB 626 form serves as a crucial tool for those seeking relief from specific penalties imposed under various sections of the Revenue and Taxation Code. This form allows taxpayers to formally request that the Franchise Tax Board’s Chief Counsel exercise discretion in relieving all or part of certain penalties, such as those related to reportable transactions or frivolous returns. Each request for penalty relief must be submitted on a separate FTB 626, and it is essential to include a detailed statement outlining the facts and reasons supporting the request. Taxpayers must also provide pertinent identification information, including Social Security numbers or Entity Identification numbers, depending on whether the request is for an individual or a business entity. The form requires signatures from all involved parties, ensuring that the request is legitimate and thoroughly vetted. By adhering to the guidelines set forth in the FTB 626, individuals and entities can navigate the complex landscape of tax penalties with a clearer path toward resolution.
Request for Chief Counsel to Relieve Penalties
Please see the reverse side of this form for general instructions and mailing information.
Use this form to request relief from a penalty imposed under Revenue and Taxation Code Sections 19164.5, 19173, 19179, 19182, 19772, 19773, or 19774. You must complete a separate FTB 626 for each penalty from which you want relief.
Name of Taxpayer/Entity
Social Security Number/Entity ID Number
Spouse/RDP
Spouse’s/RDP’s Social Security Number
Address (number, street, and room, or suite number)
City, State, and ZIP Code
Tax Year (if applicable)
Amount of Penalty
I request that Franchise Tax Board’s Chief Counsel relieve the following penalty: (Check only one. You must submit a separate claim for each penalty from which you want relief. )
Section 19164.5 - Reportable transaction accuracy-related penalty
Section 19173 - Failure to maintain advisee lists penalty
Section 19179 - Frivolous return penalty
Section 19179(d) - Frivolous submission penalty
Section 19182 - Failure to furnish information regarding reportable transactions
Section 19772 - Failure to disclose reportable transaction penalty
Section 19773 - Reportable transaction understatement penalty
Section 19774 - Noneconomic substance transaction understatement penalty
I attached a statement specifying the facts and reasons supporting my request for relief from the selected penalty.
Under penalties of perjury, I declare that I have examined this request, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete.
Signature (and title if applicable)
Date
Signature
Get FTB 1131, Franchise Tax Board Privacy Notice, at ftb.ca.gov or call us at 800.338.0505 and select form code 948 when prompted. If outside the United States, call us at 916.845.6500.
FTB 626 C2 (REV 06-2016) SIDE 1
Instructions for FTB 626
Purpose of FTB 626
You can use FTB 626 to request that Franchise Tax Board’s Chief Counsel relieve certain penalties. The law provides the Chief Counsel with discretion to relieve all or part of these penalties. You can only request relief from penalties listed on the front of FTB 626.
You must complete an FTB 626 for each penalty from which you are seeking relief and attach a copy of the notice on which we imposed the penalty. We impose penalties on Notices of Proposed Assessment or billing notices.
Speciic Instructions
Social Security Number – Individuals: If your request for penalty relief is related to a joint return, enter social security numbers for both you and your spouse/RDP.
Entity Identiication Number: If your request for penalty relief is for a corporation, partnership, estate, trust,
LLC or other business entity, enter the entity identiication number.
Signature – Individuals: If you iled a joint return, and you and your spouse/RDP are both requesting relief, both spouses/RDPs should sign the request.
Signature – Business Entities: An authorized individual must sign requests iled by business entities, and the signature must be accompanied by the individual’s title.
Your authorized representative may ile FTB 626 for you. A copy of the original Power of Attorney must be attached to FTB 626.
Statement: You must attach a statement specifying the facts and reasons supporting your request for relief from the penalty.
Mail your completed request and supporting statement to:
CHIEF COUNSEL LEGAL DIVISION MS A 260
FRANCHISE TAX BOARD
PO BOX 1720
RANCHO CORDOVA CA 95741-1720
For additional penalty information, go to ftb.ca.gov and search for penalty. You can also contact us at 800.852.5711.
Connect With Us
Web: ftb.ca.gov
Phone:
800.852.5711
7 a.m. to 5 p.m. weekdays, except state holidays
916.845.6500
from outside the United States
TTY/TDD:
800.822.6268
for persons with hearing or speech impairments
FTB 626 C2 (REV 06-2016) SIDE 2
After gathering all necessary information, you can begin filling out the California FTB 626 form. This form is required to request relief from specific penalties imposed by the Franchise Tax Board. Each penalty requires a separate form, so ensure you have the correct details for the penalty you are addressing.
What is the purpose of the California FTB 626 form?
The California FTB 626 form is used to request relief from certain penalties imposed by the Franchise Tax Board (FTB). This form allows taxpayers to ask the Chief Counsel to consider their situation and potentially reduce or eliminate penalties under specific sections of the Revenue and Taxation Code.
Which penalties can I request relief from using the FTB 626 form?
You can request relief from penalties listed on the front of the FTB 626 form. These include penalties related to reportable transactions, failure to maintain advisee lists, frivolous returns, and others as specified in the form. Each penalty requires a separate FTB 626 submission.
How do I complete the FTB 626 form?
To complete the FTB 626 form, you must provide your name, Social Security Number or Entity ID, and the amount of the penalty. You also need to indicate which penalty you are requesting relief from and attach a statement detailing the facts and reasons supporting your request. Make sure to sign the form appropriately.
Do I need to submit additional documents with my request?
Yes, you must attach a statement that specifies the facts and reasons for your request for relief. Additionally, if you are submitting the form on behalf of a business entity, you must include a Power of Attorney if an authorized representative is filing the request.
Can I request relief for multiple penalties on one FTB 626 form?
No, you must complete a separate FTB 626 form for each penalty from which you are seeking relief. Each form should include the specific penalty you are addressing and the corresponding supporting statement.
Where do I send my completed FTB 626 form?
Mail your completed FTB 626 form and any supporting documents to the Chief Counsel, Legal Division, at the address specified on the form: CHIEF COUNSEL LEGAL DIVISION MS A 260 FRANCHISE TAX BOARD PO BOX 1720 RANCHO CORDOVA CA 95741-1720.
What should I do if I have questions about the FTB 626 form?
If you have questions regarding the FTB 626 form or the penalty relief process, you can visit the FTB website at ftb.ca.gov or contact their customer service at 800.852.5711. They are available weekdays from 7 a.m. to 5 p.m., except state holidays.
Is there a deadline for submitting the FTB 626 form?
Completing the California FTB 626 form can be a straightforward process, but many make common mistakes that can delay or jeopardize their requests for penalty relief. Understanding these pitfalls is essential for a successful submission.
One frequent error is failing to fill out a separate FTB 626 for each penalty. The form clearly states that you must submit a different request for each penalty from which you seek relief. Ignoring this requirement can lead to automatic rejection of your claims.
Another mistake involves incorrect or incomplete identification numbers. Individuals often forget to include their Social Security Number or fail to provide the Entity Identification Number for business entities. This information is crucial for processing your request and should be checked for accuracy.
Many taxpayers neglect to sign the form. If you are filing a joint return, both spouses must sign the request. For business entities, an authorized individual must sign, and their title must accompany the signature. Without proper signatures, your request cannot be processed.
Some individuals overlook the importance of attaching a supporting statement. This statement should clearly outline the facts and reasons for your request for relief. Failing to include this document can result in delays or denials.
Inaccurate penalty selection is another common issue. Taxpayers sometimes check the wrong box when indicating which penalty they are contesting. Double-checking this section can prevent confusion and ensure that your request is directed appropriately.
Additionally, people often forget to include the notice related to the penalty. The form requires a copy of the notice that imposed the penalty. Without this, the Franchise Tax Board may not have the necessary context to evaluate your request.
Some submitters also fail to pay attention to the mailing address. Ensuring that your completed form is sent to the correct address is vital. Misaddressed envelopes can lead to significant delays in processing your request.
Another mistake involves not adhering to the submission deadlines. If you miss the deadline for submitting your request, you may lose your opportunity for penalty relief. Mark your calendar and plan ahead to avoid this issue.
Finally, individuals sometimes do not keep copies of their submitted forms and supporting documents. Retaining a copy is essential for your records and can be useful if any follow-up is required. Always document your submissions.
By being aware of these common mistakes, you can increase the likelihood of a smooth and successful process when filling out the California FTB 626 form. Take your time, review your information, and ensure all requirements are met.
When dealing with penalties imposed by the California Franchise Tax Board (FTB), it is essential to understand the various forms and documents that may accompany the FTB 626 form. Each of these documents serves a specific purpose in the penalty relief process, ensuring that taxpayers can present their cases effectively. Below is a list of commonly used forms and documents that may be required alongside the FTB 626.
Understanding these accompanying forms and documents can significantly impact the outcome of a penalty relief request. It is crucial to ensure that all necessary paperwork is completed accurately and submitted on time. Taking these steps can help taxpayers navigate the complexities of tax penalties more effectively.
When filling out the California FTB 626 form, there are important steps to follow. Here are five things you should do and five things you should avoid:
Understanding the California FTB 626 form is crucial for those seeking relief from penalties. However, several misconceptions often arise regarding this process. Here are eight common misunderstandings:
Being informed about these misconceptions can help you navigate the penalty relief process more effectively. Always ensure that you follow the instructions carefully and provide all necessary documentation when filing your request.
When filling out the California FTB 626 form, keep these key takeaways in mind: