The California Franchise Tax Board released its 2024 Taxpayers’ Bill of Rights Annual Report in early 2025. The publication highlights changes in tax laws, modernization projects, and compliance programs, while reaffirming fundamental rights for taxpayers. Officials said the goal is to strengthen the tax system, ensure individuals pay the correct amount, and improve services across programs.
One of the most notable updates was removing the January 1, 2025, sunset date for electronic communication between the department and taxpayers. Under Senate Bill 167 and Assembly Bill 3287, the Franchise Tax Board may continue sending notices, bills, and tax information electronically at the taxpayer’s request. The office said this option supports faster communication and lowers costs.
The Taxpayer Bill, first enacted in 1988, guarantees rights such as privacy of financial information, plain language in correspondence, and access to an independent review of disputes. Taxpayers may also appeal to the tax court, request an attorney or authorized representative to act on their behalf, and expect to pay no more than the correct liability under law.
Direct outreach increased in 2024, with more than 300,000 letters sent to Californians who appeared eligible for the California Earned Income Tax Credit but had not filed for it. According to the report, over 10,600 people received nearly $2 million in refunds from similar tax programs in the prior tax year. The department said this effort helps residents claim deductions and credits, while ensuring support reaches households under challenging circumstances.
Tax professionals noted that these initiatives provide information in various ways, giving taxpayers free resources to comply with their obligations and avoid penalties or interest. The agency aims to make dealings with the tax office less complex by using plain language and clear forms.
The Enterprise Data to Revenue (EDR2) modernization project replaced legacy systems tied to income tax collection and audits. New self-service tools, including options to manage payment plans, request administrative dissolution, apply for certificates of revival, and submit forms online, are expected in 2025.
Officials said the upgrades will reduce the need for office visits, allow employees to process returns more efficiently, and improve access for both businesses and individuals. Executive Officer Selvi Stanislaus said in the report, “This helped us focus on ensuring our tax return and payment processing, among other operations, ran smoothly as we maintained a laser focus on customer service.”
The FTB also expanded its collaboration with the Internal Revenue Service. More than 33,000 Californians used the Direct File pilot in 2024, which directed them to CalFile for state tax returns. Plans are underway to create a data bridge so federal income information can be imported directly into state filings starting in January 2026.
The agency said this partnership with the IRS will protect taxpayer rights while simplifying the process of filing state and federal forms. Once the integration is complete, taxpayers can expect to see fewer errors and faster processing periods.
Enforcement remained a key focus. The Franchise Tax Board closed FTB Notices 2023-02 and 2023-03, which allowed taxpayers to resolve potentially abusive transactions at reduced cost. By addressing objections in this process, participants avoided lengthy audits, added interest, and extended court proceedings.
The report noted California’s annual tax gap is about $25.5 billion. Officials said continued efforts are needed to collect revenue, ensure compliance, and assist those seeking to comply with the law. Employees in the compliance department emphasized that enforcement is balanced with respect for taxpayer rights and the availability of free resources supporting taxpayers.
For individuals and businesses, these updates mean greater access to services and clearer rights when dealing with the Franchise Tax Board. Expanded electronic communication, stronger protections under the Privacy Act, and the ability to work with an authorized representative provide flexibility. Taxpayers can also rely on an independent review if they disagree with decisions and have the right to appeal in court.
The agency said new tools in 2025 will make filing income tax returns, setting up payment plans, and requesting assistance easier. By protecting fundamental rights and providing information in plain language, the FTB aims to support compliance and reduce debt. Officials reminded taxpayers that they could contact the Taxpayers’ Rights Advocate at 800-883-5910 for free help.
Tax professionals and attorneys may act as authorized representatives on behalf of taxpayers when dealing with the department.
Schedule your confidential tax relief review today
© 2025 Get Tax Relief Now™. All rights reserved.
