CA SB274

Requires partnerships to report any federal adjustments or corrections to the Franchise Tax Board within 6 months after the final federal determination date, with detailed reporting sufficient to compute California tax changes.

Authorizes partnerships to pay tax at the partnership level on federal adjustments under IRC Section 6225, using tiered tax rates based on partner types (corporate, individual, tax-exempt, etc.), rather than passing adjustments through to individual partners.

Allows partnerships making a federal election for alternative payment under IRC Section 6226 to file amended California Nonresident Group Returns and pay taxes due, with other partners reporting adjustments individually under Section 18622.

Establishes a 2-year statute of limitations for the Franchise Tax Board to assess deficiencies if partnerships file timely reports, and a 4-year limit if filings are late or missing; authorizes the state partnership representative to act on behalf of the partnership and bind all partners.

Amends Section 19311 to allow refund claims and permit the Franchise Tax Board to initiate proposed overpayments within 2 years of final federal determinations related to partnership-level adjustments.