Dateline Sacramento – Divorce-related legislation sponsored by George Runner, vice chair of the state Board of Equalization, today cleared the Assembly Committee on Revenue and Taxation.
SB 526 gives the Franchise Tax Board authority to honor legal divorce agreements regarding tax payments when determining if one spouse can be relieved of joint tax liability.
“The Franchise Tax Board should have the ability to honor court-approved agreements that fairly divides assets and debts,” said Mr. Runner.
Taxpayers should not have to go back to court to enforce a divorce agreement because of government inefficiency.”
Currently, most of income tax appeals to come before the Franchise Tax Board that include a divorce settlement involve women who believe they were protected from tax liability but find they must return to court to enforce the agreement or pay the tax.
Senate Bill 526 will help ease the financial burden of divorced women who should have no legal obligation to pay the tax, as stipulated by their divorce agreement, Mr. Runner said.
“Divorce can be difficult enough without the addition of more court filings and paperwork to work out a tax liability decision already agreed upon by both parties,” said Senate Republican Leader Jean Fuller (R-Bakersfield). “SB 526 will provide the Board with broader authority to consider the divorce agreement when making a liability ruling. This will reduce the need for additional expenses to the impacted party.”
“SB 526 helps real taxpayers who face real challenges,” said Sen. Sharon Runner (R-Antelope Valley). “An individual who thinks she is protected by their divorce agreement should not have to go back to court to keep from paying a tax liability for which she is not responsible.”
Ms. Fuller and Ms. Runner co-authored the bill sponsored by Fiona Ma of the Board of Equalization.
Mr. Runner may be contacted at www.boe.ca.gov/Runner
