Taxpayers’ Bill of Rights Hearing Summary
On December 1, 2011, the Franchise Tax Board held its annual Taxpayers’ Bill of Rights Hearing along with a regularly scheduled board meeting. Practitioners and taxpayers were invited to submit issues in writing and could also request time to address the board during the meeting to present their issue. Here are a few of the items presented to the board.
Conformity – This continues to be an issue for California taxpayers. This year, the board heard recommendations for California to consider an expansion of areas of automatic conformity to defined subchapters or parts of the IRC.
Litigation – A taxpayer and several members of his bankrupt company testified that if the services of city, county and state governmental agencies in California were denied until such time as an entity is in full compliance with the tax laws, we would see its ability to collect revenues due the state increase significantly.
Mandatory E-Pay Waiver – A suggestion was made to allow for waiver of the mandatory e-pay requirement where a taxpayer is disabled and cannot meet this requirement.
IRS Ruling on Mello Roos – A request was made for us to obtain a written ruling from the IRS that sets forth when a Mello-Roos property tax assessment is deductible and when it is not.
Practitioner Hotline Upgrade – Practitioners urged us to implement the Virtual Hold Technology (VHT) service on the practitioner hotline due to long wait times experienced by practitioners.These are just a few of the issues we heard this year. The Taxpayers’ Rights Advocate’s goal is to review and address each one of these issues as well as all of the issues received in writing, and respond by February 1, 2012. Our responses will be posted on our website.