Taxpayers’ Bill of Rights Hearing Update
On December 5, 2012, the Franchise Tax Board held its annual Taxpayers’ Bill of Rights Hearing along with a regularly-scheduled board meeting. Practitioners and taxpayers were invited to submit issues in writing and could also request time to address the board during the meeting to present their issue. Here are a few of the items presented to the board:
Amended Tax Returns and Mandatory e-payment – Once a taxpayer becomes subject to the mandatory electronic payment requirement, all payments of tax, penalties, and interest for any year must be made electronically. (R&TC Section 19011.5) However, if a taxpayer files an amended tax return and makes the payment electronically, we will likely refund the payment before the amended tax return is processed.
Withhold-at-Source Education and Outreach – Additional education and outreach on California’s nonresident and backup withholding requirements is still necessary in the small business community.
Disaster Treatment Simplification and Improved Timing – California disasters (whether presidentially-declared, governor-declared or both) require follow-up legislation in California to secure disaster loss treatment on California tax returns.
Conformity – A recommendation was made to restore a process to achieve a date change and for us to take ownership of the issue.