Chat with an FTB Representative

Changes to 2011 Forms

Updates to the 3809 Booklet on 02/14/2013 –– Targeted Tax Area Deduction and Credit Summary

We replaced text on Page 16, Worksheet IV, Section A, Line 6.

Previous Version

Enter the amount from form FTB 3805V, Part 1, Section A, Line 20

Revised Version

Enter the amount from form FTB 3805V, Part 1, Section A, Line 18

Reason for the changes

The Court of Appeal’s held in Cutler v. Franchise Tax Board (2012) 208 Cal. App. 4th 1247, that the qualified small business stock exclusion and deferral statutes under California Revenue and Taxation Code (R&TC) Sections 18152.5 and 18038.5 are unconstitutional. These sections are now invalid and unenforceable.

Impact

The revision increases the tax liability for taxpayers who reported a qualified small business stock exclusion or deferral for taxable years beginning on or after January 1, 2008.

Back to Tax Form Changes for 2011