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Registered Domestic Partners (RDPs) May be Eligible to Have the Underpayment of Estimated Tax Penalty Waived

RDPs in California who received an underpayment of estimated tax penalty notice or bill from us for tax year 2007 may be eligible to have the penalty waived.

Under the California Domestic Partnership Law, tax year 2007 was the first time RDPs could file their taxes as "married filing jointly or separately." As a result, estimated tax payments may have been more than expected for RDPs who previously filed as "single." When a taxpayer does not make their required estimated tax payments, we impose an underpayment of estimated tax penalty.

A possible solution exists under Section 19136.13 of the Revenue and Taxation Code. This section provides that an underpayment of estimated tax penalty does not apply to 2007 returns filed by RDPs, if the underpayment of tax was created or increased due to the new filing requirement that RDPs must file a return as married filing jointly or separately.

If you believe you qualify to have the penalty waived based on the new filing requirement for RDPs, call us at 800.852.5711. If you are a tax practitioner, call 916.845.7057.