Comments on: California to Repudiate Treasury on Treatment of Net Operating Losses?

By: Anonymous

Anonymous — Mon, 08 Dec 2008 09:54:00 +0000

IA, “You don’t know what you are talking about. Many states incorporate the IRS code for their own tax codes. So? They need not follow every change in the IRS code. And don’t.”

You are willfully misstating what I said. Treasury guidance on irc 382 would be authority in CA, absent action to the contary.

By: Independent Accountant

Independent Accountant — Mon, 08 Dec 2008 06:05:00 +0000

Anonymous:
You don’t know what you are talking about. Many states incorporate the IRS code for their own tax codes. So? They need not follow every change in the IRS code. And don’t.

By: artichoke

artichoke — Mon, 08 Dec 2008 04:23:00 +0000

But you say they failed to pass this. I hope they can succeed, soon. This Treasury “announcement” is quite bogus, and any bank that relied on it has only its lawyers to blame if, to their surprise, it is reversed.

By: Anonymous

Anonymous — Mon, 08 Dec 2008 02:01:00 +0000

IA:

It is not right that there is nothing requiring states to follow federal tax law. Many states have tax statutes incorporating the federal tax code by reference or by including provisions that copy the federal tax code. And either way, they have case law that treats IRS regulations and rulings as authority for state tax purposes.

By: Independent Accountant

Independent Accountant — Mon, 08 Dec 2008 01:10:00 +0000

YS:
There is nothing that requires any state to follow the federal lead with respect to the tax treatment of NOLs. Some states do not recognize NOLs at all.

By: Anonymous

Anonymous — Mon, 08 Dec 2008 01:01:00 +0000

If you can’t beat them, starve them. The feds haven’t considered the microeconomic impact of anything it has done in years.