California FTB Revises Time Goals for Processing Protests

On October 27, 2006, the California Franchise Tax Board (“FTB”) issued two Legal Notices regarding revised time goals for the processing of docketed protests.  Notice 2006-5 announced a pilot project allowing certain taxpayers to request a one-year timeline for resolving their docketed protest.  Notice 2006-6 announced a goal under new FTB procedures to complete docketed protests within 24 months or less of the filing date of the protest.  Notice 2006-6 goes on to establish a three-track system, under which the length of time to process a docketed protest generally will be 12, 18, or 24 months, as specified.  Notice 2006-6 supersedes FTB Notice 99-1 (03/03/99), which previously stated the FTB’s goal was to issue a notice of action within 33 months of the filing date of a protest.