California to start issuing assessment notices in April for invalid qualified small business stock gain exclusions and deferrals

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The California Franchise Tax Board recently released updates to its Frequently Asked Questions (FAQ) page regarding treatment of previously allowed qualified small business stock (QSBS) gain exclusions and deferrals that were ruled invalid pursuant to the California Supreme Court’s decision in Cutler v. Franchise Tax Board. The FAQ additions provide that the FTB intends to send Notices of Proposed Assessments in early April 2013 and will continue to issue them before the applicable statute(s) of limitations expire. California taxpayers who took QSBS gain exclusions or deferrals in tax years that remain open under statute should be prepared for assessments to be issued by the FTB. [Qualified Small Business Stock (QSBS) Gains – FAQs]


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