California FTB notice decoder
FTB Notice of Proposed Assessment: the 60 day letter
A Notice of Proposed Assessment says the FTB intends to assess additional tax, penalties, or both, either from an audit or from an estimate after an ignored demand. You do not owe the amount yet. You have until the Protest By date, 60 days from the NPA date, to dispute it. Do nothing and it becomes final and turns into a bill. Two details people miss: protesting does not stop interest, and paying within 15 days of the notice date stops interest entirely without giving up your dispute rights.
General information, not tax or legal advice. Deadlines and dollar figures below reflect what the Franchise Tax Board publishes and can change; the controlling dates are the ones printed on your own notice. ClearChoiceRadar is not affiliated with the Franchise Tax Board or any government agency.
Where you are in California's collection sequence
- FTB 4600Request for return
- FTB 4601Demand, penalties loom
- NPAProposed assessment, 60 days you are here
- FTB 4963The bill
- Final NoticeLevy warning, 30 days
- EWOT / OTWWages or bank levied
What an NPA actually is
The FTB's publication on the NPA makes three points in plain language: you do not currently owe the amount shown, you have a right to protest within 60 days of the NPA date under Revenue and Taxation Code section 19041, and filing a protest will not stop the accrual of interest.
The federal comparison helps calibrate: the NPA plays the role of the IRS Notice of Deficiency, but the window is 60 days instead of 90, and disputes go to an FTB hearing officer and then California's Office of Tax Appeals rather than to Tax Court.
The interest move
Pay within 15 days, or deposit, without surrendering
The FTB charges no additional interest if it receives full payment within 15 days of the notice date. And under R&TC 19041.5 you can pay as a tax deposit, which stops interest from growing while your protest proceeds, without losing the right to fight the assessment. For a disputed amount you can afford to park, the deposit is often the smartest move on the page.
How to protest, and what follows
Protest online through your MyFTB account under Proposed Assessments, or in writing to the FTB Protest Section by the Protest By date. After review, the FTB issues a Notice of Action. If you still disagree, you have 30 days from the Notice of Action date to appeal to the Office of Tax Appeals.
Miss both windows and the remaining path is paying in full and filing a claim for refund. Miss just the protest and the assessment becomes final under R&TC 19042, billed as a Notice of State Income Tax Due.
NPA questions
Do I owe the money when I get an NPA?
Not yet. The FTB's own explanation states you do not currently owe the amount shown. It becomes a debt only when the assessment goes final, either because the protest window passed or a protest and appeal concluded against you.
Does filing a protest stop interest?
No, and the FTB says so directly. Interest keeps accruing on whatever ends up owed. The two interest-stopping tools are full payment within 15 days of the notice date, or a tax deposit under R&TC 19041.5 that preserves your protest rights.
What is the Office of Tax Appeals?
An independent California administrative body that hears appeals after the FTB denies a protest. You have 30 days from the FTB's Notice of Action to appeal there. It is the state analog of going beyond the auditor, though unlike the U.S. Tax Court route it is administrative rather than judicial.
What happens if I ignore the NPA?
It becomes final under R&TC 19042 and the FTB bills you with a Notice of State Income Tax Due. From there the case is a collection matter, and disputing the underlying tax generally requires paying in full and claiming a refund.
Sources: FTB 7275: Personal Income Tax Notice of Proposed Assessment Information, FTB: If you disagree with an NPA, FTB: Letters index. The deadline that governs your case is the one printed on your notice.
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