Tax credits abuse: be on alert!(FTB)

The FTB has noticed taxpayers filing returns (original or amended) claiming carryover credits they never earned to reduce current tax liabilities. Example: You prepared a return for your client that showed total tax of $5,000. Later, someone else approaches your client oflering to help reduce the total tax to 33,500 for a fee of $300. They advise your client to report S 1,500 carryover credits (e.g., political contribution credit carryover or solar energy credit carryover). 'lb your client...