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AB 463 changes how interest is abated

Volume 00-3 May/June 2001

Continued from page 1

TAX NEWS is a bimonthly publication of the Communications Services Bureau, California Franchise Tax Board. Its primary objective is to provide information to income tax practitioners about state income tax laws, regulations, policies and procedures.
Members of the Board:
Kathleen Connell, Chair
 State Controller

Claude Parrish Chair,
 State Board of Equalization

B. Timothy Gage
Director, Department of Finance
Executive Officer:
Gerald H. Goldberg
Editor: Marvin Meek
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. In circumstances where taxpayers have not included the request for abatement of interest during the original protest but later file an appeal of the proposed deficiency, taxpayers may include a request for the abatement of interest with their appeal of the underlying proposed deficiency.

. It precludes taxpayers from making a separate request at a later time, if taxpayers have protested or appealed the underlying deficiency and have not made a request for abatement of interest during the protest or appeal.

. If a taxpayer does not protest or appeal our adverse action on an underlying proposed deficiency and is only appealing our adverse action on a request to abate that interest, or is requesting an abatement of interest that has accrued between the time the deficiency was final and the time we issued the Notice of Tax Due, the taxpayer may make a request for the abatement of interest on FTB Form 3701, Request for Abatement of Interest. The form can be accessed on the Forms and Publications page of our website.

Go to, click on the Forms and Publications button and go to the Miscellaneous Forms section.

. If taxpayers are denied a request for abatement either by us issuing a Notice of Action or a Notice of Determination, taxpayers may appeal to the State Board of Equalization within 30 days of the date on the notice for unpaid interest, and 90 days for paid interest. Note: This differs from the previous time period to file an appeal on the denial of interest abatements, which was 180 days.

. If we do not respond to taxpayers' request for abatement of certain interest within six months (not including requests made at protest or appeal), they may treat their request as if it was denied and file an appeal with the BOE within the above referenced timeframes.

To access the complete text of AB 463, go to the Official Site for California Legislative Information at

Legislative analyses on Internet

Would you like to know more about a legislative measure you read about in Tax News? We post analyses of legislation on our website. Go to and click on the Law and Legislation button. There you will find a preview of proposed tax law changes and how they might affect your clients if the legislation becomes law.

We also post proposed and final regulations, legal notices and rulings, and links to the Revenue and Taxation Code and the California Code of Regulations.

You can find legislative measures at, the Official California Legislation Information website.

May/June 2001

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