qbteachmt
Level 15
‎03-09-2022 06:15 PM

This topic is from last year's tax filing.

I see there is "should file" and not "must file."

https://www.ftb.ca.gov/forms/Search/home/results/5050

The FTB has also confirmed that no penalties will be imposed for taxpayers who fail to file Form 4197, Information on Tax Expenditure Items, with their tax return. Taxpayers who received PPP loan forgiveness, Economic Injury Disaster Loan (EIDL) advance grants, or who operate cannabis businesses are asked to complete this form to assist the FTB in fulfilling its state-mandated data collection requirements regarding recently enacted tax benefits. However, because this form is not an “information return” there is no consequence for failing to file the return.

From: https://www.caltax.com/search-results/338775/2/10/

 
Wednesday, March 02, 2022 | By: Sandy Weiner
We are clarifying with the FTB what are the ramifications, if any, if a taxpayer fails to file the Form 4197.  We'll keep you posted.
 
Monday, March 07, 2022 | By: Sandy Weiner
Good news.  The FTB has confirmed that the Form 4197 is not an "information return" and no penalties will be imposed for failing to file this return.  The FTB also stated that failure to include FTB Form 4197 in the original return filing, would not require the return to be amended. FTB Form 4197 can be submitted separately as general correspondence.
 

https://www.caltax.com/search-results/338196/3/12/

 

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