If you’re expecting a refund from the California Franchise Tax Board (FTB), this can be a lovely time of year. If your accountant has calculated a refund, there is a fair amount of certainty you will receive one. However, occasionally this doesn’t go as planned.

If, instead of a refund, you received Form 4734D – here’s what that means.

When the FTB Feels a Return is Suspect — It Puts it On Hold

Form 4734D means that for some reason, maybe due to no fault of your own, the FTB feels your tax return is suspicious.

Before you panic, realize you are not in trouble yet, and this could be resolved simply. The FTB comes to this conclusion with its new return analysis system, and could be a result of any number of factors. It may simply need more information, which is why it will request additional documentation such as paystubs, your social security card, or additional W-2s or 1099 forms. It may also wish to simply confirm your identity.

Best Way to Handle the 4734D

Though the form suggests faxing the requested information to the office, it may not be necessary if you call them instead. By calling the Franchise Tax Board number on the notice, the employees at the FTB may be able to confirm your identity and ask some follow-up questions that might make sending the forms unnecessary.

Your licensed accountant may also call in your stead, and answer appropriate questions that would confirm the documentation they need about you. If you or your accountant chooses to call, make sure to call the listed number directly to reach the FTB 4734D specialists, not the practitioner hotline or the toll-free number.

If you choose not to call, be sure to fax the appropriate documents to the FTB as instructed. Ignoring this notice can have serious consequences.

Need to Know More About Form 4734D?

Though not a disaster, receiving a Form 4734D could mean that your tax return was not prepared correctly. PDM’s accountants can make sure that your next tax return is completely up to specifications. PDM’s tax experts can help advise you on the best course of action. Contact us; with our years of technical experience, advanced training, and cutting edge technology, we are your financial partner.