On Wednesday, May 20, the Sacramento Superior Court ruled against the California Taxpayers' Association in its challenge to California's 20% understatement levy. Although Cal-Tax may seek a writ from the California Court of Appeal, many taxpayers will now be filing amended returns (or Form 650) by June 1 to avoid the levy.

For a copy of the court's opinion (and all briefs and hearing transcripts) go to www.reedsmith.com/CAL20