Interest Computation Adjustments - Update
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November 2, 2015
Purpose of bulletin
To provide staff with additional information about interest adjustments in certain circumstances involving:
- May Department Stores v. United States (IRS Revenue Ruling 99-40)
We previously provided estimates on the number of impacted taxpayers and the fiscal impact of the interest adjustments, as follows:
|Tax Type||Computation Type||Maximum Taxpayers Impacted||Estimated Maximum Fiscal Impact|
|Personal Income Tax||May Dept Store||24,000||$1.5 million|
|Business Entities||May Dept Store||2,000||$14.5 million|
|Business Entities||Corporate Interest Netting||1,000||To Be Determined|
We are ready to begin performing interest adjustments ((**********)) in ((**********)) Taxpayers impacted by the May Department Store Ruling. Impacted taxpayers will receive a contact letter (FTB 3545) telling them about the adjustment, as well as a subsequent refund check, if appropriate. Additionally, each adjusted account will have a comment added in TI to indicate the adjustment was completed.
Taxpayers can call us at 800.852.5711, weekdays, 7 a.m. to 5 p.m., except state holidays.
NOTE: ((***)) = Indicates confidential and/or proprietary information that has been deleted.
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