Printer Friendly

Erroneous underpayment penalties issued.

For taxable years beginning Jan. 1, 2009, California requires individual taxpayers with California AGI equal to or greater than $1 million ($500,000 for married/RDP filing separately] to pay 90 percent of the current year tax or be subject to the underpayment of estimated tax penalty (see notice FTB 5805).

However, FTB systems did not allow the $500/$250 tax liability prior year exception for a 2009 tax year return reporting an AGI equal to or greater than $1 million ($500,000 for married/ RDP filing separately). As a result, notices with incorrect penalties were sent out.

The FTB says the processing error was corrected and the affected 2009 tax returns were identified and corrected. FTB 719PC, Underpayment of Estimate Tax Penalty, was sent to taxpayers regarding the adjustment beginning July 26, 2010. If applicable, refunds will be mailed within two weeks.

Learn more at www.calcpa.org/FTBerror.

COPYRIGHT 2010 California Society of Certified Public Accountants
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2010 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:FTB NEWS
Publication:California CPA
Article Type:Brief article
Geographic Code:1U9CA
Date:Sep 1, 2010
Words:150
Previous Article:Survey says ... AICPA survey finds business and industry execs expecting to expand.
Next Article:Using the Offer in Compromise Program.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters