California Franchise Tax Board issues Notice and News Flash on filing claims raising the Multistate Compact Election

October 2012

Overview

On October 5, 2012, the California Franchise Tax Board issued a Notice explaining how taxpayers should file protective claims utilizing the apportionment method contained in the Multistate Tax Compact. The Notice points out that the FTB's position is that a taxpayer may not elect the Compact apportionment method retroactively, and is merely in response to the many taxpayer requests on how to file protective claims. PwC believes that taxpayers should not be dissuaded from filing claims despite the FTB's stated position, as we believe elections made in claims for refunds continue to have merit. (FTB Notice 2012-01).

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Peter Michalowski
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