California Seeks $120 Million in Back Taxes from Small Businesses
About 2,000 small-business owners and investors in the Golden State who lawfully took a tax break that was later struck down will have the taxman knocking at their doors. Following a state appeals court decision invalidating a 20-year-old state tax, the Los Angeles Times reports, California tax collectors are trying to get $120 million from people who profited by selling stakes in small businesses. The paper’s Marc Lifsher writes:
The Franchise Tax Board is going after four years’ worth of these tax breaks. It recalculated the back taxes of people who benefited and mailed out a holiday surprise.