FTB assesses erroneous penalties to certain RDPs
The FTB has announced that they have erroneously assessed the estimated tax penalty to some RDPs who underpaid their 2007 tax liability. R&TC §19136.13 prohibits the FTB from assessing the penalty for any 2007 underpayments due to a taxpayer changing from a single filing status on the 2006 return to a married/RDP status on the 2007 tax return. In these cases, the FTB will waive the penalty.
The FTB has no way of identifying which RDPs were erroneously assessed the penalty. If you have clients who believe they were assessed the estimated tax penalty in error, call the FTB’s customer service toll-free number at (800) 852-7511 or the Tax Practitioners’ Hotline at (916) 845-7057 and request a penalty waiver.
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