San Francisco Tax Preparation / CPA: CA – Taxpayers failed to establish error in assessment of additional tax

Filed in CCH NEWS FEED by on September 9, 2020

Taxpayers’ protest against a California personal income tax assessment by the Franchise Tax Board (FTB) was denied because the taxpayers failed to establish that the FTB’s assessment of additional tax which was based upon federal adjustments was erroneous. Generally, a taxpayer must concede the accuracy of the federal changes or prove that those changes, and any California deficiency assessment based thereon, are erroneous. In this matter, the taxpayers asserted that the assessment of additional tax set forth in the FTB’s notice of assessment was incorrect. It was noted that the taxpayers failed to show error in the FTB’s assessment. Further, the taxpayers were not entitled to an abatement of interest as they failed to demonstrate that the FTB caused the accrual of interest because of a delay in the performance of a ministerial or managerial act. Accordingly, the taxpayers’ protest was denied. Nguyen, California Office of Tax Appeals, No. 19034576, February 13, 2020, released August 2020

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