When the Franchise Tax Board (FTB) has no record of a California return it believes is required, it sends a Request for Tax Return or a Demand for Tax Return. Both call for a response within 30 days. A prompt, accurate response is usually the simplest way to resolve the notice.
Request Versus Demand
According to the FTB’s guide to its letters, the Request for Tax Return (FTB 4600) and the Demand for Tax Return (FTB 4601) both state that the FTB does not have a record of the individual’s California personal income tax return, and both give 30 days from the date on the notice to respond.
The consequences of not responding differ. For an unanswered Request, the FTB states that it will assess tax based on available information, including interest and delinquent filing penalties. For an unanswered Demand, the FTB states that it will issue an assessment based on estimated income that includes tax, a demand penalty, a delinquent filing penalty, and a cost recovery fee.
How to Respond
There are three basic responses. If a return was required, file it. If a return was already filed, use the reply form included with the notice to say so. If no return was required, explain why on the reply form, for example because income was below California’s filing threshold or because the person was a nonresident with no California-source income.
California’s filing thresholds depend on filing status, age, and number of dependents. For 2025, for example, the FTB lists a California gross income threshold of $22,941 for a single filer under 65 with no dependents.
Why These Notices Are Sent
The FTB sends these notices when its records indicate a filing requirement but show no return. Those records do not always tell the whole story. They may not reflect that the person moved out of California, that wages were earned for work performed elsewhere, or that a return was filed under a different name or identification number.
What Happens if There Is No Response
If a required return is not filed, the FTB may at any time estimate income from available information and propose an assessment of tax, interest, and penalties (Revenue and Taxation Code (R&TC) § 19087). Penalties can include the late-filing penalty of 5 percent per month, up to 25 percent (R&TC § 19131), and, after a demand, a penalty of 25 percent (R&TC § 19133).
Responding to an Estimated Assessment
An estimated assessment is issued as a Notice of Proposed Assessment, which can be protested within 60 days (R&TC §§ 19041, 19087). A protest is usually most effective when it includes the actual return, which replaces the FTB’s estimate with the taxpayer’s real income and deductions. If no return was required, the protest should explain why and include supporting records.
An estimated assessment is based on whatever information the FTB has, which may not reflect deductions, credits, or the place where income was earned. Filing an accurate return is generally the most direct way to correct it.
Nonresidents and California-Source Income
Nonresidents are taxed only on income from California sources. FTB Publication 1031 explains that wages and salaries have a source where the services are performed. A nonresident who worked in California, received rent from California property, or sold California real property may need to file Form 540NR, while a nonresident with no California-source income owes no California income tax.
Penalty Relief
The late-filing and demand penalties do not apply if the failure was due to reasonable cause and not willful neglect (R&TC §§ 19131, 19133). Individuals may also qualify for a one-time abatement of late-filing or late-payment penalties for taxable years beginning on or after January 1, 2022 (R&TC § 19132.5). That abatement does not extend to the demand penalty.
Paying What Is Owed
If the return shows a balance due, the FTB offers payment plans to individuals who qualify, and it has an offer in compromise program for taxpayers who cannot pay the full amount.
The Bottom Line
A Request or Demand for Tax Return is a 30-day notice. Filing the return, or explaining why none was required, usually resolves it. Ignoring it leads to an estimated assessment with added penalties and fees, which then has to be corrected through a protest.
Received an FTB request or demand for a return?
Tax attorney Cassra Minai, Esq. can review the notice and your filing obligations in a confidential consultation.