Record keeping requirements - Good summary of rules from the California Franchise Tax Board (FTB) that apply for IRS purposes as well. California taxpayers need to be sure to catch the fact that the statute of limitations for the FTB to come after you is four years after filing a tax return, one year longer than IRS has.
FTB is sneaky in exploiting that extra year. We have heard of cases where people had tossed their records after the IRS’s three years statute of limitations had expired, only to be unable to defend themselves against FTB assessments. With the current budgetary disasters in Sacramento, we can expect FTB to pull out all of the stops in regard to squeezing every last dime out of people, whether they really owe the money or not.
Click on blue link above to go directly to the Franchise Tax Board website.
FTB is sneaky in exploiting that extra year. We have heard of cases where people had tossed their records after the IRS’s three years statute of limitations had expired, only to be unable to defend themselves against FTB assessments. With the current budgetary disasters in Sacramento, we can expect FTB to pull out all of the stops in regard to squeezing every last dime out of people, whether they really owe the money or not.
Click on blue link above to go directly to the Franchise Tax Board website.
