Provisions allowing the Taxpayers’ Rights Advocate to abate California corporation franchise and income and personal income tax penalties, fees, and interest under certain circumstances involving error or unreasonable delay by the Franchise Tax Board (FTB) have been extended and modified. Previously, the relief provisions were scheduled to be repealed on January 1, 2016. Modifications to the provisions include the following:
– eliminating the requirement that a taxpayer file an application for relief to be granted;
– requiring the Advocate to coordinate with the Chief Counsel when providing relief;
– increasing the total amount of relief that may be granted to a taxpayer from $7,500 to $10,000 per taxable year, subject to annual adjustments for inflation;
– requiring that the board itself be notified whenever relief is granted;
– specifying a retention period of at least one year for the public record of such relief; and
– removing the indexing requirement for relief in excess of $500 that must be submitted to the FTB’s Executive Officer for concurrence.
Ch. 541 (S.B. 540), Laws 2015, operative January 1, 2016