Scott B. Price, CPA

Safe harbor change

January 5, 2009

For taxable years beginning on or after January 1, 2009 individual taxpayers in California with adjusted gross income in excess of $1 million ($550,000 in the case of a married individual filing a separate return) must now pay at least 90% of their current year California tax to avoid an underpayment penalty.

We will provide you guidance in the filing instructions for your tax return or separate estimated payments on how to comply with these new requirements if they are applicable to your situation.