California Invents New Way To Raise Revenues
Under the California Franchise Tax Board’s interpretation of a 2012 state Court of Appeals ruling, which found part of the tax law to be unconstitutional, anyone who acted in good faith to claim the now-deceased QSB incentive on their2011 California return owes the state back taxes on the excluded or deferred income.
And the same goes for 2010. And 2009. And 2008.
And, what’s more, these taxpayers will also be hit with back interest and possible penalties.
The penalties part is particularly hilarious. We are going to penalize you for doing what we told you to do.
By the way, I likely would have opposed the QSB incentive had I known about it as just another crony giveaway. So I have no problem ending it. But retroactive tax increases are a bad, bad precedent.
NormD:
The Prop 30 tax increases passed last Nov were retroactive to Jan 1 2012 so lots of CA taxpayers are already going to be hit wit unexpected retroactive taxes.
February 5, 2013, 2:13 pm