Monday, January 23, 2006
Kathleen K. Wright (California State University, East Bay - Department of Accounting and Computer Information Systems) has published California Tax Shelters -- This Time It's Federal Conformity, 39 State Tax Notes 249 (Jan. 23, 2006), also available on the Tax Analysts web site as Doc 2006-146, 2006 STT 14-12. Here is the abstract:
Because California enacted tax shelter legislation a year ahead of the federal government, it was inevitable that the rules would be modified if the federal game plan changed. The American Jobs Creation Act of 2004 (Jobs Act) included several of the anti-tax-shelter measures that the Internal Revenue Service had been waiting for. Those new federal rules modified previous reporting procedures in a significant way and California jumped on the new (and expanded) procedures in AB 115 (CH 05-691). This article discusses the revised California tax shelter reporting provisions and compares California's penalty regime with the new federal menu of penalties for failure to properly report.