California FTB Tax News April 2026: Disaster Forms, Bulk Sales & New Tools
With the April 15 filing deadline approaching, California’s Franchise Tax Board has released its April 2026 Tax News publication covering several important changes for taxpayers and tax professionals. From California FTB tax news on disaster form requirements to new digital self-service tools and renamed certificates for bulk sale transactions, staying current with these updates helps you avoid unnecessary notices, delays, and penalties. In this comprehensive roundup, we cover every significant FTB update from the April 2026 Tax News edition — including specific forms, online tools, phone numbers, and practical guidance for navigating each change.
When Do California Taxpayers Need FTB Form 3872 for Disaster Postponement? 📋
Form 3872 is only required when California’s disaster postponement period expires before the federal period — not when both federal and California grant identical postponement dates, which is the most common scenario.
This is one of the most frequently misunderstood areas in disaster-year compliance. Here is the clear framework from FTB’s April 2026 Tax News:
When federal and California postponement dates are the same (most LA Wildfire filers):
- Form 3872 is NOT required
- The taxpayer is treated as timely if filing and payment occur within the postponement window
- Relief is automatic for all taxpayers in covered disaster areas — but you must mark the return
When Form 3872 IS required:
- When California’s state postponement period expires before the federal postponement
- Taxpayers must file FTB Form 3872 (California Disaster Relief Request for Postponement of Tax Deadlines) to request additional relief
- This scenario arises when the Governor’s declaration and IRS’s declaration have different end dates
How to properly mark your California return for disaster relief:
- Paper-filed returns: Write the disaster name (e.g., “LA County Wildfires”) in blue or black ink at the top of the return. This signals to FTB to route and process the return with disaster relief treatment.
- Electronically filed returns: Follow your software’s specific disaster declaration input section. Contact your software provider’s customer service if you cannot find the California disaster field.
- Taxpayers outside the disaster area: If your tax records or practitioner’s office is located in the disaster zone, you may still qualify. Note the applicable disaster designation and retain documentation supporting your eligibility.
For comprehensive California disaster relief guidance, visit the FTB Disaster Relief page.
In our Los Angeles-area practice, we have seen significant confusion this season around the LA County Wildfire disaster postponement. Several clients assumed they had automatic extension without properly marking their returns. FTB’s clarification is critical: when federal and California postponement dates align, relief is automatic — but only if the return is clearly marked with the disaster designation. Without that marking, FTB systems may not flag the return for postponement treatment, resulting in penalty notices. Always write “LA County Wildfires” at the top of paper returns and confirm your software’s California disaster section is completed.
What Changed with California Bulk Sale Transactions in 2026? 🏢
The “bulk sales certificate” has been renamed the “buyer’s withholding clearance certificate” — the name change clarifies the document’s purpose, but the underlying transaction requirements and buyer protections remain unchanged.
In California, when a business changes hands through a bulk sale (typically the sale of business assets rather than shares), the buyer must obtain FTB clearance to confirm the seller does not owe withholding taxes, interest, or penalties. The FTB renamed this document to better describe its actual function:
- Old name: Bulk Sales Certificate
- New name: Buyer’s Withholding Clearance Certificate
The certificate confirms whether the seller owes withholding taxes and, once issued, releases the buyer from further liability for those withholding taxes and associated interest and penalties. The certificate does not release the seller from any remaining liability — it only protects the buyer.
Buyers can now submit their clearance request online through the FTB online bulk sale portal, significantly speeding up the pre-closing clearance process compared to prior paper-only submission.
Buyers who close on California business asset purchases without obtaining a buyer’s withholding clearance certificate can be held personally liable for the seller’s unpaid withholding taxes. This is a critical step in any California business acquisition — do not let escrow close without confirmed clearance. We recommend initiating the online request at least 30–45 days before your anticipated closing date to allow sufficient FTB processing time.
What Is the New FTB Schedule R Verification Online Tool? 💻
The FTB launched a new online Schedule R Verification service (FTB 4303) that allows taxpayers and tax professionals to provide a missing Schedule R apportionment form online — before a deficiency notice is issued — with or without a MyFTB account.
Schedule R is California’s Apportionment and Allocation of Income form, required by corporations, partnerships, and LLCs with income from both inside and outside California. When the FTB identifies a return that appears to be missing Schedule R, they now issue a digital verification request through the FTB 4303 process.
Key features of the new Schedule R Verification tool:
- No MyFTB account required — anyone with the necessary verification information can respond
- Proactive resolution — allows intervention before the return completes processing, potentially preventing a deficiency notice
- Faster processing — online submissions are processed more quickly than paper correspondence
- Available to both taxpayers and authorized representatives — tax practitioners can respond on behalf of clients
If you or a client receives a Schedule R Verification request from the FTB, respond promptly through the FTB Schedule R Verification portal to avoid processing delays.
How Should New California Entity IDs Be Entered on FTB Returns? 🔢
Since 2025, the California Secretary of State issues 12-digit alphanumeric entity IDs to newly formed businesses — but FTB systems require numeric digits only on tax returns and Web Pay transactions.
This has caused processing errors for new businesses whose entity IDs contain both letters and numbers. The FTB issued a March 3, 2026 Tax News Flash specifically to address this:
- Tax preparation software: Follow your software’s specific instructions for entering only the numeric digits from the 12-digit alphanumeric ID
- FTB Web Pay: Enter only numeric digits. Web Pay displays an error if you include dashes, spaces, or alphabetic characters
- Paper returns: Enter only the numeric portion in the entity identification number field
- Existing businesses: Entities formed before the Secretary of State began issuing the new alphanumeric format retain their existing numeric-only IDs — no action needed
What Are FTB’s Extended Contact Hours for the April 15 Deadline? 📞
The FTB is offering extended weekday and Saturday hours for both taxpayers and tax professionals from April 1–15, 2026, to handle peak filing season volume.
| Contact Center | Dates | Hours (PST) | Phone |
|---|---|---|---|
| Customer Service | Apr 1–15 (M–F); Apr 11 (Sat) | 8am–6pm (M–F); 8am–5pm (Sat) | 1-800-852-5711 |
| Tax Pro Hotline | Apr 1–15 (M–F); Apr 11 (Sat) | 8am–6pm (M–F); 8am–5pm (Sat) | 916-845-7057 |
| Personal IT Collections | Apr 1–15 (M–F) | 8am–6pm | 1-800-689-4776 |
| Business IT Collections | Apr 13–15 (M–W) | 8am–6pm | 1-888-635-0494 |
The FTB strongly encourages tax professionals to use MyFTB online account for routine inquiries — verifying estimated tax payments, checking refund status, and reviewing client account balances — to reduce phone wait times and keep lines available for complex matters. Practitioners with full online account access can look up client information directly without calling, saving significant time during peak season.
📌 Key Takeaways: California FTB Tax News April 2026
- Form 3872 is only needed when CA postponement expires before federal — but always mark disaster returns with the disaster name regardless
- The “bulk sales certificate” is now the buyer’s withholding clearance certificate — submit online at least 30–45 days before closing
- New Schedule R Verification (FTB 4303) online tool lets multistate entities respond to missing apportionment schedule requests before a deficiency notice issues
- New CA Secretary of State entity IDs are 12-digit alphanumeric — always enter numeric digits only on FTB returns and Web Pay
