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Qualified Settlement Fund (QSF)

November 30, 2016 • Pauline Kwok • Log In to Post Comments

Will the qualified settlement fund be subject to the corporate minimum tax of $800?   Please advise. 


Pauline, Pursuant to Rev. & Tax. Code Sec. 24693 and FTB Notice 93-8, the fund is only subject to the corporate tax of 8.84% under R&TC Sec. 23501. I do not believe it would be subject to the  $800 tax under R&TC Sec. 23153. 


Hi, Sandy,

I just talked to the FTB agent, Mr. Juan, on the minimum tax.  He indicated he talked to his tax auditor and they insisted that the qualified settlement fund will be subject to the minimum tax (even though I read them your email from the Message Board).  Any additonal help you can provide or documentation will be extremely helfful.  Also, is there anyone you have dealt with on this subject at the Franchise Tax Board?   




Pauline,  R&TC Sec. 24693 makes no reference to the minimum tax.  


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