Arcadia, CA -- (SBWIRE) -- 09/27/2013 -- The Qualified Small Stock exemption is causing controversy in California between lawmakers, investors and the California Franchise Tax Board. Over 2,000 taxpayers are fighting an order to pay $120 million in back taxes.
The Court of Appeals ruled that the Qualified Small Stock exemption was partially unconstitutional. This caused the California Franchise Tax Board to retroactively assess payments from investors. Those parties impacted by the assessment immediately contacted their representatives. Prompted by complaints, California lawmakers voted not to assess investors citing it was unfair to seek extra tax payments from law abiding citizens.
The bill passed by legislators is currently being reviewed by the Governor of California. It is uncertain what the fate of the bill will be. Investors are hoping to avert payment of the tax because many will face a substantial liability. The Internal Revenue Code and state tax provisions are constantly changing. It is difficult to know how to interpret new legislation without the assistance of trained professionals. Underpayment of tax can cause taxpayers numerous fines and headaches.
Libman Tax Strategy specializes in tax planning for individuals and businesses. Company personnel are thoroughly versed in the nuances of the Internal Revenue Code and the provisions of the California Franchise Tax Board. This in-depth knowledge helps to reduce clients’ tax liabilities to the lowest possible amounts. Detailed information on services is available via the following link: http://www.adamlibman.com/
For further information on the tax return preparation, please phone (626) 280-6865. Company personnel are adept at reducing tax liabilities and performing general accounting services. The provisions of federal and state tax codes are complex making talented accountants invaluable.
Libman Tax Strategy
255 E. Santa Clara Street
Arcadia CA 91006