Question
A mistake was discovered on Marisas prior year California, Form 540, tax return.On the return, Marisa received a refund of $736 which she chose to
A mistake was discovered on Marisas prior year California, Form 540, tax return.On the return, Marisa received a refund of $736 which she chose to voluntarily contribute to the California Breast Cancer Research Fund. After recalculating the tax return, taking the mistake into consideration, Marisa owed the Franchise Tax Board $637 and instructed her tax preparer to simply reduce the amount of the contribution. Assume you are the tax preparer.
How will you approach the situation?
a.File the amended return reducing the contribution to $99 and advise Marisa it is taken care of.
b.File the amended return without reducing the contribution and advise Marisa contributions are irrevocable.
c.Not file the amended return and advise Marisa to wait and see if the Franchise Tax Board discovers the error on their own.
d.Not file the amended return and advise Marisa to simply mail in a letter stating the error and to take the amount owed from the contribution
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