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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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My family owned business has chosen me (8 shareholders) to

Customer Question

My family owned business has chosen me (8 shareholders) to use as a scapegoat. I am concerned. They want to gift $60,000 (2014, 2015 each year) to a charity in California. They won't tell me who it is. They have additional paperwork on my K-1 showing monetary listing but, zero capital to the state of California. We do NOT have a plant or office in California. We do have independent sales reps without offices. Our company makes decisions like this for us and in the past all was Kosher. NOW, this shows up and when I ask them about it, they give me very vague responses. One response is: We distribute our charities amongst all of the one else has California listed. The other response is: We protect ourselves with PL 86 272 in California since we do have sales staff there.
Will I run into trouble with filing my taxes for the second year in a row showing California tax explanations....? FYI, I live in Florida!!!
Submitted: 6 months ago.
Category: Tax
Expert:  socrateaser replied 6 months ago.
Hello, I'm not clear on exactly what is being displayed on your K-1. Are you saying that the business has made a gift to a California charity, but it shows up only on your K-1, as a deduction from your net profits. In other words, are you received $60,000 less than the other shareholders? Thanks for helping me to understand the situation.