Can a unitary group of taxpayers participate in the VCI if the member investing in the abusive tax transaction has no California nexus?
Yes. Taxpayers eligible for the VCI previously filed a return and understated their California taxable income or liability by the use of an abusive tax transaction. Taxpayers filing a combined report, wherein one or several members invested in abusive tax transactions affecting unitary business income, are each eligible to participate in the VCI as the group’s business income apportioned to California was understated due to the abusive tax transaction. A single VCI participation agreement may be submitted on behalf of a unitary group of taxpayers who elected to file a combined report.
Related Questions
- Can a unitary group of taxpayers participate in the VCI if the member investing in the abusive tax transaction has no California nexus?
- Can I participate if I am currently under IRS audit, or recently completed an IRS audit for an abusive tax avoidance transaction?
- Can I file a VCI amended return reversing less than 100 percent of the potentially abusive tax transaction?
