FTB sending out Schedule A letters


The FTB is sending out Schedule A itemized deduction letters, “Review Your State Tax Return – Total Itemized Deductions” (FTB 4709 ENS), to taxpayers who reported large Schedule A itemized deductions on their 2019 tax returns that are “significantly higher than expected.” (FTB Tax News, June 2022)

According to the FTB, “The purpose of the review letter is to encourage taxpayers to review their 2019 tax return, and current tax years, for any discrepancies.” The letter indicates that “Deductions commonly overstated may include medical expenses, charitable contributions, mortgage interest, and unreimbursed employee business expenses.”

This review letter does not constitute an audit, but the 2019 return does remain subject to audit until the statute of limitations expires. Taxpayers should review their return and make sure that the amounts claimed are accurate that that they have the proper documentation to substantiate their deductions.

The FTB started this outreach effort by sending a small volume of review letters in May and will increase the volume over the next several months.