Form Ftb 3701 - Request For Abatement Of Interest Page 2
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1
2Instructions for FTB 3701
Request for Abatement of Interest
We base these instructions on California Revenue and Taxation Code Section 19104(a) and (b).
General Instructions
Specific Line Instructions
Definitions:
A deficiency is the difference between
Form Purpose
Social Security Number
the amount of tax shown on an original or
If you are filing FTB 3701 to request an
amended tax return and the amount of tax
abatement relating to a joint tax return,
Use FTB 3701 to file a request for the
determined by FTB.
enter social security numbers for both
abatement of interest. The Franchise Tax
A managerial act is an administrative
you and your spouse. Effective for tax
Board (FTB) can abate all or part of
act that occurs during the processing
years beginning on or after January 1,
interest charged when the additional interest
of a taxpayer’s case, which involves the
2007, for purposes of California income
is attributable to certain errors or delays
temporary or permanent loss of records.A
tax, references to a spouse also refer to a
made by FTB or the IRS.
managerial act is also the exercise
registered domestic partner (RDP), unless
Interest Abatement – Based on FTB
of judgment or discretion that relates
otherwise specified.
Errors or Delays
to management of personnel (Treas.
The law only allows FTB to abate
Entity Identification Number
Reg. 301.6404-2(b)(1)).
interest for FTB errors or delays under the
If you are filing FTB 3701 to request an
A ministerial act is a procedural or
following circumstances:
abatement of interest for a corporation, a
mechanical act that does not involve the
partnership, or a limited liability company,
•
The interest accrued on a deficiency or
exercise of judgment or discretion and that
enter the entity identification number.
a proposed deficiency was attributable
occurs during the processing of a taxpayer’s
in whole or in part to any unreasonable
case after all prerequisites to the act, such
1. Enter the period of time for which you are
error or delay by an officer or employee
as conferences and review by supervisors,
requesting an abatement of interest.
of the Franchise Tax Board (acting in his
have taken place (Treas.
2. Enter the tax year(s) for which the
or her official capacity) in performing a
Reg. 301.6404-2(b)(2)).
abatement of interest is being requested.
ministerial or managerial act.
3. Explain in detail your reasons for filing
Who can File
•
The interest accrued on a payment of
the request:
You or your authorized representative
any tax was attributable to an officer or
•
can file FTB 3701. If your authorized
Describe the circumstances of
employee being dilatory in performing a
representative files for you, attach the
your case.
ministerial or managerial act.
•
original or a copy of FTB 3520, Power of
Describe the error or delay on the
•
The interest accrued on a bill or notice
Attorney Declaration to the FTB 3701.
part of FTB, or provide evidence that
that FTB delayed due to a governor
the Internal Revenue Service abated
When to File
state of emergency or federal major
interest based on a ministerial or
To request an abatement of interest shown
disaster declaration.
managerial act.
on a Notice of Proposed Assessment, you
•
The interest at issue accrued after
•
State when you were first contacted
must include your request with your protest
September 25, 1987, without regard to
by FTB in writing about the deficiency
against the Notice of Proposed Assessment
the tax year.
or payment.
or your appeal from a Notice of Action on
•
For managerial acts, the interest at issue
a protest. Otherwise, the Franchise Tax
Attach appropriate supporting evidence to
accrued for tax years beginning on or
Board cannot consider your request and you
the FTB 3701.
after January 1, 1998.
may lose your right to file an appeal of any
•
No significant aspect of the delay or error
If Your Request is Denied
determination not to abate the interest.
was attributable to the taxpayer.
If the Franchise Tax Board denies your
•
The error or delay occurred after the date
If you wish to request the abatement of
request for an abatement of interest, you will
FTB contacted the taxpayer, in writing,
interest on a final unpaid balance due, you
receive a formal letter of denial explaining
may file that request at any time.
with respect to the deficiency or payment.
your right of appeal to the State Board of
Equalization.
If you wish to claim a refund of paid interest,
Normal tax return processing or audit work
be aware there is a statute of limitations.
within the statute of limitations time period
For your appeal rights and actions, see
Generally, your claim can be filed no later
will not in itself justify the abatement of
FTB 5847l, Procedure for Appealing a
than four years from the due date of your
interest. Generally, FTB has four years to
Denial or Partial Denial of a Request for
tax return, or one year from the date of the
make an audit adjustment.
Abatement of Interest.
overpayment. You can also file an informal
Interest Abatement – Based on IRS
If You Do Not Hear From Us
refund claim within either of the four year or
Errors or Delays
If you do not hear from FTB within six
the one year time periods, if you have not
The law only allows FTB to abate interest for
months of filing your request for abatement
paid the full amount. An informal claim will
IRS errors or delays when the IRS abated
of interest, and you are not filing your
protect your right to file a later appeal with
interest under the following circumstances:
FTB 3701 with a protest, you may consider
the State Board of Equalization or file suit in
•
your request “deemed denied” and file an
The interest accrued is attributable to an
court. The informal claim is perfected into a
appeal with the State Board of Equalization.
error or delay in the performance of a
formal claim when you pay the full amount
For your appeal rights, see FTB 5847I.
ministerial or managerial act by
due. However, we cannot credit or refund a
the IRS.
You can contact the Franchise Tax Board at
payment that you made more than seven
•
The error or delay must have occurred
800.852.5711, or from outside the United
years before the full amount is paid.
on or before the IRS issued a final
States, call 916.845.6500 (not toll-free).
Where to File
determination of tax.
Your unpaid balance continues to accrue
•
The deficiency upon which the federal
If you are filing a protest or appeal, attach
interest during the time that we consider
the completed and signed FTB 3701 and
interest abatement was allowed must be
your interest abatement request and during
mail both to the address on the notice
related to the state deficiency.
any appeal, until you pay the balance in full.
•
The interest can only be abated for
you received from us. Otherwise, mail the
completed and signed form to:
For more information, go to ftb.ca.gov and
the same time period that the IRS
search for interest abatement.
abated interest.
EXECUTIVE AND ADVOCATE SERVICES
•
The interest at issue accrued after
FRANCHISE TAX BOARD MS A381
September 25, 1987, without regard to
PO BOX 157
the tax year.
RANCHO CORDOVA CA 95741-0157
•
For managerial acts, only interest
Fax: 916.843.6022
accrued for tax years beginning
on or after January 1, 1998, may
be considered.
FTB 3701 C2 (REV 02-2013) SIDE 2
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