We may request to see or photocopy books, records, documents or other information to support the correctness of your tax returns. (California Revenue and Taxation Code section 19504.) Please see the following links for a list of documentation we may ask for if we examine your return for an abusive tax scheme. These lists are not all-inclusive. We may ask for additional information and documents depending on the type of transaction reported on your return.
- How you became aware of the tax strategy.
- Information regarding the promoter of the tax strategy, including the name, address and telephone number of this person or firm.
- Copies of the research you did concerning this tax strategy.
- Copies of all offering memoranda, prospectuses, or other literature describing the investment and the tax benefits you expected to derive from the investment.
- Detailed description of the transaction.
- All books and records relating to the items being examined on the tax return. This includes financial records, such as bank and brokerage statements, and trust instruments.
- A schedule of your basis in the transaction, and supporting documents for each adjustment to the basis.
- Copies of Tax Opinion Letters, Legal Opinion Letters or any correspondence discussing the legal authority for the tax treatment of the transactions including, but not limited to, applicable code sections, regulations, and court cases.
- All correspondence or agreements
between you and any of the following regarding the transaction or strategy:
- Attorneys
- Accountants
- Brokers
- Promoters
- Others involved with the tax strategy
- All correspondence or agreements discussing:
- Expected risks and benefits from participating in the tax strategy
- Fees paid or incurred to set-up the tax strategy
- All invoices or bills paid for services rendered by any attorney, accountant or promoter.