A California personal income taxpayer was entitled to an abatement of a demand penalty because the penalty was not properly imposed. Generally, the Franchise Tax Board (FTB) may impose a penalty when a taxpayer does not timely respond to a Demand for Tax Return. Further, the FTB is only allowed to impose a demand penalty if the taxpayer also failed to timely respond to a Request or a Demand for Tax Return for a prior year, and that failure resulted in FTB issuing a Notice of Proposed Assessment (NPA) at any time during the four taxable years preceding the year […]
Tax Flash: California Taxpayer Entitled to Abatement of Demand Penalty
