Flash - New FAQs for Qualified Small Business Stock
February 28, 2013
We added the following FAQs to the existing list of Qualified Small Business Stock (QSBS) Gains – FAQs:
When will FTB issue proposed additional tax assessments on QSBS exclusions or deferrals?
Notices of Proposed Assessment (NPAs) will be sent beginning in early April, 2013 and will continue to be issued before the applicable statute(s) of limitations expire.
Can taxpayers request a waiver of the 2008 statute of limitations to postpone the issuance of an NPA?
Yes. A waiver extends the time for FTB to issue an NPA, or for a taxpayer to receive a refund. Taxpayers can contact FTB to request a waiver to extend the expiration of the 2008 statute of limitations. Taxpayers interested in signing a waiver should contact the auditor on their letter (if they received one) or call FTB at 916.845.3030. If interest suspension applies, signing a waiver will extend the interest suspension period – see interest and penalties FAQ 3.
How can I protest an NPA disallowing QSBS exclusions or deferrals?
FTB has established procedures for taxpayers to easily protest the QSBS tax assessments. If you wish to protest the NPA:
- Check the appropriate box on the notice.
- Sign and date in the space provided.
- Mail or fax a copy to the address or phone number given on the notice.
- You do not need to send additional documentation at this time.
When protesting a proposed QSBS tax assessment, can a taxpayer request FTB to defer action on the protest pending 2013 legislative action that may impact the QSBS proposed assessment?
Yes. The protest procedures include an option to request that the protest be held pending legislative action. Interest will continue to accrue during the deferral and any subsequent action on the protest, until payment is received.