California ~ Corporate, Personal Income Taxes: Taxpayers’ Rights Advocate Relief Extended and Modified

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 Previously, the relief provisions were scheduled to be repealed on January 1, 2016.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

 

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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