Franchise Tax Board – First-Time Abatement Proposed

The Franchise Tax Board has proposed a bill which would provide penalty relief for taxpayers who fail to timely file a tax return or fail to timely pay an income tax liability. This relief would be available for individuals and corporations and would mirror the federal program offered by the IRS. If enacted in 2014, the program would be available for requests made on or after January 1, 2015.

To read the full proposal, click here.

In accordance with Circular 230 Disclosure


Betty Williams has a broad range of experience handling civil and criminal tax controversy matters including income tax, employment tax, sales and use tax, property tax and IRS, FTB, and SBE audits, protests, and appeals. She has represented clients before the U.S. Tax Court and the U.S. District Courts in California. Betty has obtained penalty abatement for numerous clients ranging from a few thousand to more than $2 million in late filing and late payment penalties. She has assisted numerous clients in the United States and abroad in the 2009, 2011 and 2012 IRS and FTB voluntary disclosure initiatives. She also represents foreign financial institutions regarding Foreign Account Tax Compliance Act (FATCA) compliance. She has experience defending criminal tax matters and negotiating plea agreements in areas such as structuring, tax evasion, and the failure to file a tax return.

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1 comment on “Franchise Tax Board – First-Time Abatement Proposed”

  • Betty, thanks for the update. I think this is a good idea because there are times when compliant taxpayers do make a mistake and can be quite surprised and dismayed with the size of the penalty that might follow. One challenge of enactment though is that the constituency who benefits don’t know they may need this abatement someday so won’t be out supporting it. Hopefully members will see the benefit this bill has to improve compliance and respect for the tax system and enact it.

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