Erroneous underpayment penalties issued.

• Position: FTB NEWS - Brief article

For taxable years beginning Jan. 1, 2009, California requires individual taxpayers with California AGI equal to or greater than $1 million ($500,000 for married/RDP filing separately] to pay 90 percent of the current year tax or be subject to the underpayment of estimated tax penalty (see notice FTB 5805).

However, FTB systems did not allow the $500/$250 tax liability prior year exception for a 2009 tax year return reporting an AGI equal to or greater than $1 million ($500,000 for married/ RDP filing separately). As a result, notices with incorrect penalties were...