Today's Law As Amended

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AB-136 Personal Income Tax Law: deductions: charitable contributions: business expenses.(2019-2020)



SECTION 1.
 It is the intent of the Legislature to alert the Franchise Tax Board to unlawful deductions that were taken in connection with contributions and payments made to the Key Worldwide Foundation and the Edge College and Career Network, LLC. In addition to those unlawful deductions taken by individuals on their personal income tax returns, there may have been unlawful deductions taken by corporations on their corporate income tax returns. The Legislature urges the Franchise Tax Board to investigate this unlawful activity and to make deficiency assessments as provided by law.

SEC. 2.

 Section 17275.4 is added to the Revenue and Taxation Code, to read:

17275.4.
 (a) For taxable years beginning on or after January 1, 2014, a deduction for a charitable contribution to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, pursuant to Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, pursuant to Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall not be allowed to a taxpayer who meets all of the following conditions:
(1) They are charged as a defendant in any of the following criminal complaints filed in the United States District Court for the District of Massachusetts:
(A) Criminal Complaint #19-CR-10081-IT.
(B) Criminal Complaint #19-CR-10078-RWZ.
(C) Criminal Complaint #19-CR-10075-MLW.
(D) Criminal Complaint #19-CR-10074-NMG.
(E) Criminal Complaint #19-cr-10079-RWZ.
(F) Criminal Complaint #1:19-cr-10117.
(G) Criminal Complaint #1:19-cr-10115.
(H) Criminal Complaint #19-cr-10131.
(I) Criminal Complaint #1:19-cr-10116.
(J) Criminal Complaint #1-19-cr-10080.
(2) There is a final determination of their guilt with regard to a violation of any offense of Title 18 of the United States Code arising out of that criminal complaint.
(3) There is a finding that they took the deduction unlawfully pursuant to the final determination of guilt described in paragraph (2), or pursuant to a determination by the Franchise Tax Board.
(b) For purposes of this section, “final determination of guilt” means that the defendant has been convicted by verdict of a jury, accepted and recorded by the court, by a finding of the court in a case where a jury has been waived, or by a plea of guilty, and that the defendant has exhausted all appellate remedies.
SEC. 3.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.