Senator Sharon Runner
FOR IMMEDIATE RELEASE: June 2, 2015
CONTACT: Kendra Kruckenberg (Runner) @ 714.878.8056, Tom Collins (Fuller) @ 916-651-4016
SACRAMENTO – Legislation authored by Senators Jean Fuller (R-Bakersfield) and Sharon Runner (R-Lancaster) to allow California’s tax agency to honor divorce agreements passed unanimously off the Senate Floor today. SB 526, sponsored by Board of Equalization Members George Runner and Fiona Ma, gives the Franchise Tax Board (FTB) flexibility to consider a divorce agreement when determining if one spouse can be relieved of a tax liability.
“SB 526 will provide the FTB with the flexibility to consider the divorce agreement when making a tax liability ruling,” said Fuller. “This flexibility reduces the need for additional expenses and duplicative paperwork helping reduce costs and stress in an already difficult and expensive process.”
The Board of Equalization often hears income tax appeals from taxpayers who believe they are protected from tax liability by their court approved divorce agreement only to discover their single recourse to enforce the agreement is to go back to court or pay the tax liability. SB 526 will help ease the financial burden of spouses who have no legal obligation to pay the tax, as stipulated by their divorce agreement. Most of these cases involve women.
“SB 526 helps real taxpayers who face real challenges,” said Runner. “An individual who thinks they are protected by their divorce agreement should not have to go back to court to keep from paying a tax liability for which they are not responsible.”
SB 526 passed with unanimous, bipartisan support and now moves to the State Assembly.
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