FTB and POA Changes

January 01, 2018
FTB, POA Updates
2018 California Power of Attorney and MyFTB Changes 

January marks MyFTB’s second anniversary. During the last two years, the FTB has worked to improve the MyFTB customer experience for taxpayers and tax professionals. As of Jan. 2, the FTB will be making major changes.

New Power of Attorney Forms
The FTB will replace its current version of Form 3520, Power of Attorney Declaration, with two new POA forms and adding a new POA revocation form:
  • FTB 3520 PIT: Individual or Fiduciary Power of Attorney Declaration (new);
  • FTB 3520 BE: Business Entity or Group Nonresident Power of Attorney Declaration (new); and
  • FTB 3520 RVK: Power of Attorney Declaration Revocation (new).

The new forms are available online and can be uploaded in MyFTB on or after Jan. 2. If you upload the new forms in MyFTB prior to Jan. 2, they will be rejected.

All new POAs approved in 2018 and after will expire in six years from the signature date. Prior to this change, POAs generally remained in effect until they were revoked, or in the case of an “Authorization for All Tax Years or Income Periods for a Limited Duration” POA, it expired four years from the signature date.

In addition, the FTB will no longer automatically revoke POAs with overlapping periods. Prior to 2018, when you submitted a new POA that covered the same time period as an older POA, the new POA revoked the old.

Also, all forms, including prior FTB 3520 and non-FTB forms, received prior to Jan. 1, 2018, will be accepted and processed. Additionally, all active POA declarations will continue to be valid until revoked or expired.

Non-FTB POA Forms
Beginning Jan. 2, the FTB will no longer process federal Form 2848; prior versions of FTB 3520; and non-FTB POAs, such as CDTFA 392 (formerly BOE 392) joint agency power of attorney form.

Exceptions, however, include General/Durable POA when submitted with a completed FTB 3520 attached, and military Durable POA, which can be submitted without a completed FTB 3520. The FTB does highly recommend that a completed FTB 3520 is attached to ensure faster processing.

POA Checklist
According to the FTB, 50 percent of POA declarations submitted are rejected. Use the following checklist to avoid common errors:
  • If submitting via MyFTB, compare the information entered online to the information on the uploaded POA declaration. The information must match exactly. Common errors: The declaration is incomplete; the primary representative entered online does not match what is on the declaration. This error mainly occurs when the individual entering the information online is not the primary representative. By default, the individual entering information online becomes the primary representative; and additional representatives listed on the declaration are not entered online.
  • The declaration is signed and matches the name listed in Part 1.
  • There is only one taxpayer listed on the declaration.
  • Business entities and fiduciaries: The appropriate title of the person authorized to sign the POA is listed.
  • Supporting documentation is included with the declaration for an estate or trust.
  • For a non-FTB POA: A completed FTB 3520 is attached and uploaded.
  • The declaration to be uploaded is in a “read only” format, such as PDF.
POA Notification Changes
When the FTB accepts or rejects a POA, they mail a letter to the taxpayer and an email to the representative.

Accepted POA
Taxpayer: The FTB will send the client an FTB 1124, Power of Attorney Declaration Filed. In addition to the 10-business day hold information, the letter will now include:
  • The primary representative’s name;
  • Total number of active POAs the taxpayer has on file; and
  • Name of the last primary representative with an active POA on file with the FTB.
Representative: The FTB will send the representative an email confirmation that the POA is active. The confirmation will be sent to the email address listed on the declaration.

Rejected POA
Taxpayer: The FTB will send the client FTB 4267A ENS, Incomplete POA Declaration Filed.
Representative: The FTB will send the representative an email stating that the declaration has been rejected. The rejection is sent to the email listed on the declaration.

New Tax Information Authorization (TIA) 
In January, the FTB’s new TIA relationship will allow it to release limited information for all tax years to an authorized representative, including estimated payments; notices and account history; and compliance status.  

Information can be released over the phone, in writing and in MyFTB. However, the TIA relationship does not allow a representative to act on the taxpayer’s behalf before the FTB. In general, to act on behalf of your client with FTB you need to have a POA.

Establishing a TIA Relationship
There are two ways that you can establish a TIA relationship: 
Through MyFTB: The relationship is established by adding the client in MyFTB, the same way you do now as a “Tax Preparer”. 
By Mail: Beginning Jan. 2, the FTB will have two new TIA forms that were created to allow representatives who do not have a MyFTB account a way to establish a formal relationship with the FTB so they could better serve their clients. The forms are:
  • FTB 3534, Tax Information Authorization—Individual, Fiduciary, Business Entity or Group Non Resident 
  • FTB 3535: Tax Information Authorization Revocation (new)
Note: The FTB will not accept non-FTB forms, such as the federal Form 8821, Tax Information Authorization.

TIA Notifications
Accepted TIA: The FTB will send the client an FTB 1125, Tax Information Authorization Filed (this form replaces the current FTB 4099). In addition to the 10-business day hold information, the letter will now include:
  • The primary representative’s name;
  • Total number of active TIAs the taxpayer has on file; and
  • Name of the last primary representative with an active TIA on file with FTB.
Rejected POA: The FTB will send the client an FTB 4267B ENS, Incomplete Tax Information Authorization Filed.

Revoking a TIA Relationship:
  • Via MyFTB: You can review the details of your client’s TIA relationship and select “Revoke.” You do not have to file FTB 3535 RVK.
  • By mail: Mail the completed—and signed—FTB 3535 RVK to the FTB.
  • Phone: Call the FTB. No form required.
Other MyFTB Changes 
  • A redesigned Tax Professional homepage that displays your contact information, alerts, recently active or rejected POA declarations, and Quick Links to navigate MyFTB, etc.
  • Rebrand “Tax Preparer” Access Type (a non-Power of Attorney client) to TIA throughout MyFTB. 
  • View statuses for your POA and TIA relationships on your Client List.
  • View rejection reasons for your POA declarations and TIA clients on your Client List. 
  • Updated POA wizard that aligns to the new FTB 3520 PIT and FTB 3520 BE forms.  
  • Add “favorite” representatives to a new Associates List page to populate POA declarations submitted using MyFTB. Once added, you can simply select all or add one at a time.

Information provided by Kelly Bluth, manager at Moss Adams, and the FTB.
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