California just wrapped up its first major federal tax conformity update in a decade, but don’t expect this to be the end of the story. If anything, it’s just the opening chapter of what’s shaping up to be a multiphase process that will keep tax practitioners on their toes for years to come.
Gov. Gavin Newsom’s (D) signature brought California into alignment with more than 1,000 changes to the Internal Revenue Code that took effect before Jan. 1. It was the biggest synchronization between state and federal tax law since 2015.
But panelists at a recent Sacramento Delegation meeting hosted by the California Lawyers Association panel noted that this isn’t the final word. The legislature plans to keep pushing cleanup legislation to make life easier for both taxpayers and the Franchise Tax Board. Translation: Expect more amendments down the road.
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Read "California’s New Federal Tax Conformity to Remain a Moving Target" by Shail P. Shah, published by Bloomberg Tax.