When it comes to the imposition of penalties, that is.
In a recent decision of the Board of Equalization, serious illness was not even a sufficient basis to abate late payment, notice and demand, and estimated tax penalties in a case where one spouse was ill and the other continued to run the business in question.
Husband, in this case, was seriously sick, requiring a kidney transplant, while wife continued to serve in her capacity as vice president of the family corporation, which generated income of more than $400,000 per year. The state figured that she was perfectly capable of managing the business affairs, and paying the taxes on time. No “reasonable cause” here. (Appeal of Huerta, SBE 573108, 2/26/13)