Taxation
Ca. Tax Lawyer 2017, VOLUME 26, NUMBER 1
Content
- 2016 Annual Meeting of the California Tax Bar & California Tax Policy Conference Report
- Bar Business
- Charles Moll Honored With the 2016 Benjamin F. Miller Award
- Constructive Receipt Tax Rules Every Lawyer Should Know
- Contents
- Gap Between Tax and Sanctions Law Blocks Lifesaving Aid
- Honorable Marshall Whitley (Ret.) Honored With the 2016 Joanne M. Garvey Award
- Masthead
- Message from the Chair
- Nathan Hochman Honored With the 2016 V. Judson Klein Award
- Proposal to Permit Liability Netting for Partnerships Subject to Involuntary Conversion
- Separation of the Sections from the State Bar
- Taxation Section 2016-2017 Leadership Directory
- The 2016 Benjamin F. Miller Award Acceptance Speech
- The 2016 Joanne M. Garvey Award Acceptance Speech
- Visiting the Committees
- Legislative Proposal for Infusing Guaranteed Fairness in Tax Administration by Allowing Partial Prepayment Judicial Review of Ftb-proposed Personal Income and Franchise Tax Deficiencies
Legislative Proposal for Infusing Guaranteed Fairness in Tax Administration by Allowing Partial Prepayment Judicial Review of FTB-Proposed Personal Income and Franchise Tax Deficiencies1
By Mark Bernsley2
EXECUTIVE SUMMARY
In a 2013 ranking of what can be considered a measure of fairness of State tax dispute resolution mechanisms, California tied for dead last. The most obvious feature leading to that ranking was the lack of an independent (i.e., judicial) prepayment review procedure.
This paper proposes legislative changes that would allow partial prepayment (and sometimes no prepayment) access to judicial review for Franchise Tax Board ("FTB") income and franchise tax deficiency determinations otherwise subject to Board of Equalization ("BOE" or "Board") appeals. The new procedure would be available as an alternative, rather than a replacement, to the current, exclusive pre-payment BOE appeals procedure. The proposal would leave the current system intact, providing an optional alternative path. The new procedure would increase fairness by allowing judicial review for, inter alia, taxpayers who are unable to pay the FTB-determined deficiencies in full.