What is the name of your state? CA
I'm an LLC. Had the world's worst accountant for 1999 and 2000 tax years. (Short story: he filed the wrong forms -- C Corp returns instead of Partnership returns!)
I sued the accountant and won back damages. My new accountant has helped me refile 1999 and 2000 returns properly -- as a partnership.
The IRS was very easy to deal with -- we wrote a letter explaining the issue and asked to remove the form 1120 filing requirements for 1999 and 2000 and abate all pentalties and interest. The IRS agreed and sent me a letter saying so.
The California FTB is another story. We refiled the returns. They say they cannot remove C Corp filing requirements for 1999 and 2000, and the fact that I filed amended (partnership) returns means that in effect I have created two companies and owe the $800+ yearly tax on all of them. (Plus penalities and interest, of course).
I called and explained that the IRS was cool with it, and they replied "we do things different from the IRS." Eventually a supervisior agreed to review the letter from the IRS about removing the C Corp requirement. He said the letter was not good enough -- it says there is no form 1120 requirement for those years but does not specifically say "There is no C Corp requirement."
Give me a break! Form 1120 = C Corp! I'm treating the FTB very nicely, since I'm sure they have a big red button stamped "AUDIT" that they can press at any moment. Kissing their butts has failed. I need to follow up and make sure they treat my amended returns properly and invalidate the original returns.
So here's the question: what's the best way to deal with the California FTB on this issue? They are making me jump through hoops. Is there any relevant CA tax law I can point out to them?
I'm an LLC. Had the world's worst accountant for 1999 and 2000 tax years. (Short story: he filed the wrong forms -- C Corp returns instead of Partnership returns!)
I sued the accountant and won back damages. My new accountant has helped me refile 1999 and 2000 returns properly -- as a partnership.
The IRS was very easy to deal with -- we wrote a letter explaining the issue and asked to remove the form 1120 filing requirements for 1999 and 2000 and abate all pentalties and interest. The IRS agreed and sent me a letter saying so.
The California FTB is another story. We refiled the returns. They say they cannot remove C Corp filing requirements for 1999 and 2000, and the fact that I filed amended (partnership) returns means that in effect I have created two companies and owe the $800+ yearly tax on all of them. (Plus penalities and interest, of course).
I called and explained that the IRS was cool with it, and they replied "we do things different from the IRS." Eventually a supervisior agreed to review the letter from the IRS about removing the C Corp requirement. He said the letter was not good enough -- it says there is no form 1120 requirement for those years but does not specifically say "There is no C Corp requirement."
Give me a break! Form 1120 = C Corp! I'm treating the FTB very nicely, since I'm sure they have a big red button stamped "AUDIT" that they can press at any moment. Kissing their butts has failed. I need to follow up and make sure they treat my amended returns properly and invalidate the original returns.
So here's the question: what's the best way to deal with the California FTB on this issue? They are making me jump through hoops. Is there any relevant CA tax law I can point out to them?