What do a preschool, a recycling facility, a popular kombucha maker, and a famous hot sauce company have in common? They are all asking California tax authorities to relax penalties tied to the state’s elective pass-through entity tax.
The tax, established in 2021 to give owners of some types of business entities a way to get around the $10,000 cap on individual federal deductions for state and local taxes, remains popular as it heads into its fourth year. And it’s reached the next phase of tax administration: taxpayer disputes.
The first cases reaching the Office of Tax Appeals highlight ...
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