The California Franchise Tax Board’s (FTB) recent decision to cease the issuance and public availability of its technical advice memorandums has raised concerns among tax professionals in the state. Historically, these memos have served as a significant source of guidance for both the FTB’s legal staff and practitioners operating within the complex landscape of California tax law. Despite the withdrawal of these documents from the FTB’s website, the board maintains that the tax positions articulated in them remain applicable.
It appears that the FTB quietly removed a total of 52 advice memorandums several months after a court case involving the American Catalog Mailers Association led to the invalidation of one such memo. This action took place without any announcement, leading to confusion and concern among tax advisors who have relied on this guidance for decades. The removal was reportedly first detected in versions of the FTB’s website archived from previous months.
The absence of these memos raises questions about transparency and the future direction of tax guidance in California. For practitioners who have long depended on these documents, the lack of formal, written guidance might complicate tax planning and compliance efforts.
To read the complete report on the withdrawal of the memos by the California Franchise Tax Board, visit the original article on Bloomberg Tax.