Spidell Publishing reports:
The FTB recently encountered an error processing some submissions of Form 100S, California S Corporation Franchise or Income Tax Return, for the 2013 tax year. As a result, the FTB system reported to the BOE that these entities had a change of ownership during 2013. This information was used by the BOE to generate erroneous letters to as many as 2,600 corporations for failing to report their change in ownership. These corporations had not, in fact, had a change in ownership.
The FTB has resolved the error, and they are fixing their records and sending corrected data to the BOE. Taxpayers who were impacted by this will receive a letter from the FTB explaining the situation and apologizing for the error and any inconvenience it may have caused.
There is no action required on behalf of the corporations impacted. All records at the FTB and the BOE will be corrected to reflect accurate information from the 2013 Form 100S filed by the corporation.
If corporations have additional questions regarding this situation, they can contact the FTB at (800) 852-5711.