California Appeals Office Sustains Denial of Abatement of Late-Filing, Estimated Income Tax Penalties

The California Office of Tax Appeals (OTA) Oct. 19 found Taxpayers weren’t entitled to an abatement of late-filing and estimated tax penalties. Taxpayers didn’t file an individual income tax return. The Franchise Tax Board (FTB) found that Taxpayers received sufficient income to require them to file a return. Taxpayers then filed a return and paid due taxes, penalties, and interest. Taxpayers requested the FTB to abate the penalties. The FTB found Taxpayers didn’t establish reasonable cause for penalty abatements and denied the request. Taxpayers protested, contending that they relied on an accountant to timely file their return. The OTA noted: ...