Steve Sims EA llc

News

Announcements and Updates

Franchise Tax Board (FTB) Legal Notice 2018-2 - FTB will allow you to orally present your position AFTER they propose a variance from the standard appointment formula. Ah, how about BEFORE?

Oh well this is still a good thing,  it goes a long ways towards resolving the issue at an earlier stage.

The purpose of this Notice is to inform taxpayers and their representatives that they may request permission to make oral presentations to FTB staff in connection with FTB staff-initiated proposed alternative apportionment under California Revenue and Taxation Code (CRTC) section 25137.  

BACKGROUND  

On October 19, 2017, FTB issued Legal Notice 2017-05, which permits taxpayers and their representatives to request permission to make oral presentations to FTB staff in connection with taxpayer-initiated CRTC section 25137 petitions. This notice is intended to supplement Legal Notice 2017-05.  CRTC section 25137 provides that FTB, through its staff, may initiate proposed alternative apportionment under CRTC section 25137, which generally involves FTB proposing a variance from the application of the otherwise standard apportionment formula in circumstances where standard apportionment does not fairly represent the extent of the taxpayer's business activity in this state. Historically, neither taxpayers nor their representatives have been permitted to orally present their position against the proposed variance before FTB staff makes its decision on the appropriateness of the proposed variance. Rather, the taxpayer would be notified of the imposition of the variance in correspondence from FTB staff. Hereinafter, a taxpayer, or the taxpayer's representative, will be notified in writing when FTB staff proposes to institute a variance from the application of the standard apportionment formula. In cases where the taxpayer or the taxpayer's representative wishes to contest the proposed imposition of the variance from use of the standard apportionment formula, the taxpayer or the taxpayer's representative may directly present its opposition to the imposition of a variance orally to FTB staff.  

Click here to read the Legal Notice 2018-2:

https://www.ftb.ca.gov/law/notices/2018/02.pdf

steve@stevesimsea.com