• New, Severe California Penalties for Taxable Years Before January 1, 2003
  • February 23, 2005 | Authors: Ronald B. Schrotenboer; Michelle Andrighetto
  • Law Firm: Fenwick & West LLP - Mountain View Office
  • Could your company owe income or sales and use taxes in California for tax years beginning prior to January 1, 2003? If you have such an amount due on or after March 31, 2005, California plans to impose a new penalty measured by a surcharge of 50% of the interest on the tax due. California also plans to increase the accuracy related penalty from 20% to 40% under certain circumstances for pre-January 1, 2003 periods.