How many cases has the Franchise Tax Board identified with abusive tax schemes and what is the associated revenue?
We have identified over 380 taxpayers investing in abusive tax schemes. We expect that number to grow as we dedicate more resources to this area. By partnering with the Internal Revenue Service, we avoid duplicating audit activity and optimize the number of taxpayers examined. We estimate the potential revenue from those 380 cases at $1 billion. Unfortunately, California will not collect the tax revenues for several years because the audits and administrative appeal process take a number of years to resolve.
Related Questions
- How many cases has the Franchise Tax Board identified with abusive tax schemes and what is the associated revenue?
- When did the Franchise Tax Board begin identifying and auditing this new generation of abusive tax schemes?
- Is the Franchise Tax Board assessing penalties against taxpayers on abusive tax schemes?
