Tax News

CCH (cch.taxgroup.com) reports:

In its September 2007 issue of Tax News , the California Franchise Tax Board (FT states that it will hold protective claims for refund of California corporation franchise and income taxes and personal income taxes paid on municipal bond interest pending action in Kentucky Department of Revenue v. Davis , U.S. Supreme Court, Dkt. 06-666, petition for certiorari granted May 21, 2007. Also, the FTB says that it is closely scrutinizing the use of IRC §754 by partnerships to construct bogus optional basis (BO transactions; announces that it is now easier for electronic return originators (EROs) to electronically file individual and business tax returns; provides a detailed discussion of its personal income tax audit program; reports on a recent interested parties meeting on withholding tax at the source; and encourages tax professionals to attend the upcoming California Tax Policy Conference in November.