CA Help - How long to respond

[BulldogTom]

Taxpayer has a small handyman business.   He and his wife also adopted their great grandchildren because the parents were unable to care for them (prison).   So they have income from SS and this small business.   A couple years ago, CA instituted a state EITC.   2 years ago they changed the rules and allowed SE income to be calculated for the purpose of the EIC credit.   We filed the return claiming the credit, and the state disallowed, requesting documentation on the business.   The client responded with (you guessed it) all his receipts.   FTB disallowed by sending a Notice of Tax Return Change - FTB 5818A ENS.   They sent it to the client on Sept 9th.   We got the notice from the client today.  

How long do I have to put his "bookkeeping" into a financial statement format and reply to this letter.   Searching online and I can't find the answer.   With the changes to the appeal process in CA, I am a little lost on the new procedures.   I think I have 3 choices:

1.  Put the information into an understandable format and reply to the letter
2. File a protest with the FTB
3.  File an appeal with the OTA

Any help would be appreciated.

Tom
Modesto, CA

[Max W]

Letter FTB 5818 is probably a revised version of the old FTB 4502.  4502 had 399  rejection codes and you needed to know the rejection code to respond to the letter. 

There was a number to call you could try,  916-845-7088.  It may or may not have changed.  The FTB website has been completely changed and links and letter numbers are not the same, making it impossible to navigate.

"Documentation of the business" is pretty vague.  You need to find out exactly what they want.

Sometimes the Chat line can help, or at least point you in the right direction.