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The California Franchise Tax Board (FTB) has fallen significantly behind in processing business income tax returns for 2022.  As of January 29, 2024, the FTB website was showing a processing time of 8 months for all business returns.

FTB System Delays

As a result of necessary system programming changes to accommodate the winter storm disaster extensions, FTB reports experiencing system delays outside its normal operational time frames. The reprogramming was needed to ensure that interest was correctly calculated on payments due and refunds because of the delayed due dates. As of February 1, 2024, FTB announced it expects to be caught up and for normal processing to resume within 30 – 45 days.

Prior to March 15, 2024, practitioners who want to file a 2023 business return that reports an overpayment credited from the client’s 2022 return should make sure the 2022 return has been processed in order to avoid confusion or notices.

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