Announcement

Collapse
No announcement yet.

CA late penalty

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    CA late penalty

    My clients moved to CA in mid 2012. Previously they filed NR CA returns becasue they had a rental property in CA. I filed an extension and had them pay $100 which was always enough to cover them in prior years. It turned out they owed $6,000. The spouse is very ill which contributed to them not being able to give me proper info to figure out a correct extension. I used FTA to get teh Federal penalties removed. Is there anything I can do for CA?

    #2
    I have had "great success" with abating Federal Penalties, unfortunately Calif is not so friendly, however, I have managed some partial abatements.

    Here is the link to the FTB law summary for reasonable cause abatement
    https://www.ftb.ca.gov/law/summaries...nt_Penalty.pdf

    following is an excerpt of what I sent for one of the Calif abatements - we received a 50% penalty refund.

    Interest of course will always be charged

    [quote] In reference to the notice for Penalties and Interest, on behalf of the taxpayer I am respectfully requesting consideration of the one-time abatement of penalties.

    The taxpayer has timely filed all tax returns with the exception of tax year 20XX, which was filed late due to taxpayer’s health issues. Taxpayer has paid all taxes, penalties and interest on his account.

    The taxpayer suffers with Advanced Parkinson’s Disease and is under hospital/rehab/assisted care from May 20XX thru present. The taxpayer has been unable to manage his financial affairs. As of February 20XX, the taxpayer’s brother has taken over the management of financial affairs for the taxpayer including filing the late 20XX Tax Return and filing a timely filed 20XX Tax Return.

    If documentation is required, please advise and we will obtain and forward. Power of Attorney has been filed with your office.

    Please consider this formal request for penalty abatement and advise us of your decision as soon as possible. Thank you for your assistance.
    [\quote]

    Worth a try - Good Luck!

    Sandy
    Last edited by S T; 01-10-2014, 08:59 PM.

    Comment


      #3
      One time abatement?

      Is there such a thing for California? My understanding is that CA abates only for reasonable cause.
      Evan Appelman, EA

      Comment


        #4
        Thereby my prior post - I was not successful in "one time abatement at Calif level, however, did receive a partial reduction of the penalty charge

        Based on "what" no one really knows no paperwork or communication from FTB , just received a Refund Check - the client was happy to receive almost $900 as a refund check, and we did not pursue any further.

        Sandy

        Comment


          #5
          Hi All this is my first Post reply ever.... Luv all the dialogue and cites. Be advised as an EA in CA I was asked by a Tax Preparer to FTA the IRS on a late file 1040. The penalty was derived from failing to report a large taxable distribution from a decedent brother in 2018. A FTA request phone to IRS call netted a 75k removal of penalty. The client was so happy he said what about CA 5k penalty? Problem there is no FTA I informed him good news is CA. is attempting to follow IRS FTA see
          Author: Bradford
          Analyst: Jessica Deitchman
          Attorney: Bruce Langston
          Sponsor: Author
          Phone: (916) 845-6310
          Related Bills: See Legislative History
          Bill Number: SB 1082
          Introduced: February 12, 2018
          Amended: March 20, 2018
          Subject: One-time Abatement of Timeliness Penalties
          If SB 1082 passes my understanding is CA will have FTA starting Jan 1, 2019.
          Hope this helps !!!
          The RojiDave

          Comment


            #6
            Originally posted by FEDUKE404
            If they became a CA resident in 2012, what happened to their CA tax liability for the intervening years?
            Note that FEDUKE404 is responding to a post from January 10 2020. I too was confused by this. The rules for extension payments sufficient to avoid FTP penalties for CA are pretty clear and haven't changed in a long time.


            As for RojiDave, this user has revived this thread and is making a pitch for passage of a CA tax law that would benefit a certain class of taxpayer at the expense of all the other taxpayers.
            "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

            Comment


              #7
              Originally posted by Rapid Robert View Post
              Note that FEDUKE404 is responding to a post from January 10 2020. I too was confused by this. The rules for extension payments sufficient to avoid FTP penalties for CA are pretty clear and haven't changed in a long time.


              As for RojiDave, this user has revived this thread and is making a pitch for passage of a CA tax law that would benefit a certain class of taxpayer at the expense of all the other taxpayers.
              I accede to your superior and infinite wisdom, O Great Board Monitor.

              Comment


                #8
                Originally posted by FEDUKE404 View Post
                I accede to your superior and infinite wisdom, O Great Board Monitor.
                There is nothing to accede to. I don't know why you deleted your post. I agreed with what you were expressing, FWIW. I was simply "making an observation" (apparently the new motto for postings to this forum) since the time gap would not be immediately obvious to everyone.

                I "make an observation" that you have previously deleted posts also for no apparent good reason. Why bother making the post in the first place if you don't stand behind it? Certainly it is your prerogative, but again why bother in the first place? I'm genuinely curious.

                "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

                Comment


                  #9
                  Originally posted by Rapid Robert View Post
                  There is nothing to accede to. I don't know why you deleted your post. I agreed with what you were expressing, FWIW. I was simply "making an observation" (apparently the new motto for postings to this forum) since the time gap would not be immediately obvious to everyone.

                  I "make an observation" that you have previously deleted posts also for no apparent good reason. Why bother making the post in the first place if you don't stand behind it? Certainly it is your prerogative, but again why bother in the first place? I'm genuinely curious.
                  My tolerance level for some of the posts appearing here can vary.
                  "Standing behind my posts" has nothing to do with the underlying issue. Frequently I just get totally fed up with some of the responses here, and I have to reassess why I am likely wasting my time posting/reading.
                  Many/most posters do provide information that is useful to me. Their knowledge often far exceeds my own.
                  Back in the dark ages, when I taught some income tax courses, I always warned my students to beware of ANY tax professional who exhibited an attitude that he/she "knows it all."
                  OTOH, some TTB posters apparently spend more of their time just arguing.

                  Comment

                  Working...
                  X