If amended returns are filed under R&TC section 19138(b) that increase the tax shown on the original return, thereby creating an underpayment, does the underpayment of estimated tax penalty apply?
No, even though the underpayment amount used in the computation of the estimated tax penalty is based on the amount shown as tax on an original return, the amount of tax shown on an amended return filed under R&TC section 19138(b) for tax years 2003-2007 will be treated as tax shown on the original return only for purposes of R&TC section 19138. Therefore, any underpayment created by an increase in self-assessed tax from an amended return will not be treated as an underpayment for purposes of computing the penalty under R&TC section 19142.
Related Questions
- If amended returns are filed under R&TC section 19138(b) that increase the tax shown on the original return, thereby creating an underpayment, does the underpayment of estimated tax penalty apply?
- What if income tax returns have not been filed for each of the most recent 3 tax years?
- How often do Local Liquor Excise Tax (LLQ) returns need to be filed?
