AHLSTARZ Tax and Accounting Service -- Numbers, Simplified.

California Gov. Arnold Schwarzenegger has vetoed A.B. 1580, which would have updated California's current Internal Revenue Code conformity date of January 1, 2005, to January 1, 2009, and incorporated many, but not all, of the federal amendments enacted during that period for state income and franchise tax purposes (see TAXDAY, 2009/09/14, S.4 and TAXDAY, 2009/09/09, S.3). In his veto message, the governor stated that he could not support the bill because of the provision that would partially conform to the federal penalty on erroneous refund claims that was inserted at the last minute. He said this provision did not reflect the consensus that had been developed in drafting the proposed legislation up to that point. The governor urged the Legislature to send him "legislation that demonstrates the agreements reached prior to the inclusion of the last provision on erroneous refund claims."

Press Release, Office of California Gov. Arnold Schwarzenegger, October 11, 2009