Valid Reasons for FTB Penalty Abatement
As appearing at Spidell’s California Minute on 10/9/16

You’ve been assessed a penalty for the late filing of your return or payment of tax . . . what are your options?  One is to claim that you had “reasonable cause” for the infraction.  Although it is an option, it is an extremely difficult case to make.  In fact, the only reasons that likely work are:

• taxpayer is seriously ill,
• taxpayer has died, or
• taxpayer is the victim of some egregious act over which they had no control,

and neither the taxpayer nor their spouse were able to file returns and pay tax.

In the attached audio clip (click on photo above to listen), Spidell Publishing’s “California Minute” discusses the difficulties of proving reasonable cause for penalty abatement: what does and does not constitute reasonable cause, and federal/California differences regarding penalty abatement.

Spidell Publishing, Inc. has been a critical source of California tax information for tax professionals since 1975, promoting ideas, references, solutions, and guidance, plus news and commentary covering all aspects of tax and its administration.