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27 February 2017

Law firm clients: California FTB legal ruling on treatment of taxes paid to another state affects law firm partners for tax years beginning on or after January 1, 2016

The California Franchise Tax Board (FTB) issued a legal ruling (2017-01) on February 22 discussing the California tax treatment of taxes paid to another state for purposes of the California Other State Tax Credit (OSTC) and allowable deductions. The ruling discusses the applicable California guidance and applies it to six situations. This legal ruling affects law firm partners and will apply for tax years beginning on or after January 1, 2016. An EY Tax Alert discussing this ruling in detail will be issued shortly.

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Contact Information
For additional information concerning this Alert, please contact:
 
Law Firm Industry practice
• Jon Spisto(212) 773-6886
• Shari Levine(212) 773-2042

Document ID: 2017-0386

 

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