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What is the default rule when the CA FTB does not have a rule about an issue? Is the default rule the IRS rule? Thank you

Long Beach, CA |

The Internal Revenue Manual has a rule that covers my issue but the California Franchise Tax Board does not address my issue. So in this case is the default rule the IRS rule? For example, does Calfornia have a law that says the taxpayer starts with federal adjusted gross income and adjustments are made pursuant to California tax law?

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Attorney answers 3


If there is no CA rule regarding a matter, the FTB will likely look to the IRS manual for input but will NOT rely on the IRS position as a default and will ultimately make a determination that suits its purposes of collecting revenues for the State.

Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.


You may want to clarify the facts here so a valid response can be given.

Generally, CA makes its own tax rules as related to what changes/adjustments need to be made to your tax return to comply with CA law.



Its not just rules, its analogies to and similarities with other similar rules, and then there are cases, and state court rulings, federal rulings interpreting the rules, BOE holdings, State Court Holdings, and much more.

Your question is in the abstract and because it is, I have no way to help you with a meaningful answer.

Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.

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