California FTB Issues Revised Notice on Process for Substantiating Limited Partnerships as Federally Disregarded

The California Franchise Tax Board Dec. 23 issued a revised notice explaining the process for limited partnerships to substantiate that they are properly disregarded for federal income tax purposes and therefore don’t need to file state partnership tax returns or pay the minimum tax. The notice clarifies that for limited partnerships to establish that they’re properly disregarded, they must submit: 1) a certificate of limited partnership, partnership agreement, organizational chart of ownership, and federal returns of the partners; or 2) a declaration signed under penalty by the general partner under local law. Limited partnerships should provide either one of the ...