California VCI 2 Results in $350,000,000 in payments!

The Franchise Tax Board (FTB) announces it raised $350 million through the Voluntary Compliance Initiative 2 (VCI 2) program which recently concluded. Cash payments from more than 1,000 taxpayers in the amount of $293 million have already been paid to California, with another $57 million expected to be paid via installment payments through June 2012. This program complemented the IRS' recent Offshore Voluntary Disclosure Initiative (OVDI) designed to allow taxpayers who participated in abusive tax avoidance transactions or offshore financial arrangements to come into compliance and properly report offshore accounts and assets.

Under the program, taxpayers had to amend their tax returns for 2010 and applicable past years in exchange for a waiver of most penalties. Most participants were individuals, comprising of 90% of the participants. Business taxpayers also contributed more than $100 million in tax and interest payments. Estates and trusts also account for a small portion of funds reported.

Taxpayers who did not participate in the program, if audited, will find themselves subject to a 12 year audit with significant penalties, including a 40% Noneconomic Substance Transaction penalty and an interest-based penalty of 50-100%.

No Comments

Leave a comment
Comment Information

Contact the Law Office of Williams & Associates

For more information about our tax law services, or to discuss your tax matter, call our Sacramento office at (916) 488-8501 or toll free at (800) 684-7147. You may also send us an inquiry via email.

Contact the Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location:

3600 American River Drive, Suite 135
Sacramento, CA 95864

Toll Free: 800-684-7147
Phone: 916-488-8501
Fax: 916-488-8196
Sacramento Law Office Map