California Appeals Office Finds FTB Didn’t Err in Granting Innocent Spouse Relief to Non-Appealing Spouse

The California Office of Tax Appeals (OTA) Aug. 17 found Taxpayer didn’t establish that the Franchise Tax Board (FTB) erred in granting innocent spouse relief to the non-appealing spouse. Taxpayer and the spouse filed a joint individual income tax return. The spouse filed an innocent spouse relief request with the FTB after getting the relief from the Internal Revenue Service (IRS). The FTB granted the request. Taxpayer argued the spouse should be equally liable. The OTA found: 1) the request filed with the FTB was on the same facts and circumstances underlying the federal determination granting relief; 2) the spouse ...