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The California FTB Updates Guidance Adding Reporting Requirements to Corporations

by | Sep 9, 2022 | Audits, FTB |

The California FTB recently issued FTB Pub 1008, Cal.FTB (rev. 7/22) updating taxpayer requirements to notify the FTB of federal tax changes to gross income, deductions or tax credit that became final, even if there is no increase in tax due to California.  The FTB says California corporate taxpayers must report the changes or corrections within six months of each final federal determination, which will then begin the two-year statute of limitations the FTB has to audit the changes.  If the FTB receives the information after the six-month period, either from the taxpayer or the IRS, then the FTB has four years to audit the taxpayer within the statute of limitations.  The information provided to the FTB, whether from the taxpayer or the IRS, must be “sufficiently-detailed” so that the FTB can apply the federal changes to the California return, resulting in any California tax change.  To read the updated publication, click here.


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