FTB follows IRS tax shelter initiative.The Franchise Tax franchise tax n. a state tax on corporations or businesses. (See: tax, corporation) Board will follow the IRS tax shelter Tax Shelter An investment selected mainly because it provides favorable tax treatment.Notes: The IRS watches tax shelters carefully. If an investment is made for the sole purpose of avoiding or evading taxes, you could be forced to pay tax (or even penalties). See also: Income Shifting, Tax Evasion, Tax Haven, Tax Shield settlement initiative as outlined in IRS Announcement 2005-80, effectively creating the California Tax Shelter Resolution Initiative to run alongside the federal initiative. [ILLUSTRATION OMITTED] Only taxpayers who are qualified to participate in the IRS initiative and who complete the requirements of the program are eligible for the California initiative, wherein participants can avoid most California tax shelter penalties, including the non-economic substance transaction understatement penalty. For more, visit www.ftb.ca.gov/aboutFTB/press/2006/06_03.html. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion