According to an article in KTLA News 5…

On Tuesday, California lawmakers in the State Senate approved a bill allowing undocumented immigrants to qualify for first-time homebuying loans.

The measure passed on a 23-11 party-line vote in the State Senate. The proposed legislation has been sent back to the Assembly for its final vote of approval before being sent off to Gov. Gavin Newsom.

The bill, formally known as AB 1840, would expand the eligibility requirement for the state’s first-time homebuyer loan program, the California Dream For All Shared Appreciation program, to allow undocumented immigrants who live in the state to use it.

The California Dream For All Shared Appreciation loan program launched in 2023 and helps qualified first-time homebuyers with down payments.

The program was initially created to help low-and middle-income individuals buy homes. Still, Assemblymember Joaquin Arambula (D-Fresno), who introduced the bill, previously told KTLA that the program doesn’t address eligibility based on immigration status.

“The program hasn’t been clear about eligibility for undocumented individuals, and AB 1840 addresses that issue,” Arambula told KTLA in an emailed statement.

Republican California lawmakers have pushed back on the bill’s progression.

“This is outrageous. Democrat Politicians care more about handouts for illegal immigrants rather than improving the quality of life for legal California citizens. I will strongly oppose this measure when it comes to the Assembly Floor this week,” Assemblyman Bill Essayli (R-Corona) said in a statement.

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Why New California
New California is a new state in development exercising it’s Constitutional Right to form from the State of California. The process to form New California is authorized and codified in Article 4 Section 3 of the United States Constitution.

After years of over taxation, regulation, and mono party politics the State of California and many of it’s 58 Counties have become ungovernable. The nature of the State becoming ungovernable has caused a decline in essential basic services such as education, law enforcement, fire protection, transportation, housing, health care, taxation, voter rights, banking, state pension systems, prisons, state parks, water resource management, home ownership, infrastructure and many more. To be sure A recent study issued by the U.S. News and World Report ranked California No. 23 in the nation based on an aggregate score measuring economy, education, infrastructure, crime, and more.

Enter New California State an organization seeking to educate California citizens about their right to form a new state from the State of California. New California State is a 501(c)(4) nonprofit organization. The organization is working together with likeminded individuals and groups to reach a common goal: to achieve a state split in accordance with the U.S. Constitution (Article IV, Sec. 3).

Founded in 2017 New California State declared its Independence on January 15, 2018 and has conducted 6 Constitutional Conventions across the state, where delegates of the New California State movement came together to construct the New California State Constitution and pass critical legislation to create New California State. The New California Legislature has to date passed 23 Resolutions including a resolution to “Restore the State of California”.

During the 6th Constitutional Convention New California State keynote speaker former Gov. and advisor to President Trump, Mike Huckabee endorsed the New California State.

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The R&D tax credit is a governmental incentive designed to encourage research and development activities in the US. This credit offers a dollar-for-dollar reduction on federal taxes for qualified expenses related to developing new or improved products, processes, software, technique, formula, or invention.

Although claiming this credit can offer considerable benefits for companies engaged in Research and Development efforts, the process is not without its challenges. Three Common Challenges You May Face while Claiming R&D Tax Credits:

Documentation of Qualified Activities and Expenses

Insufficient documentation is a common challenge with the R&D tax credit. Accurately identifying what constitutes a qualifying R&D activity and having the proper support can be challenging for taxpayers. It is important that the taxpayer implements a system for maintaining records and documentation. While R&D activities must meet specific criteria related to developing new or improved products, processes, or software, having a robust record keeping process is important

Companies must keep track of their activities and expenses and make sure they are tied to the qualifying activities while adhering to IRS regulations
Updates to R&D Tax Credit Law

The R&D Tax Code is complex, and lack of awareness and understanding is a common challenge for the taxpayer. Staying informed of any updates in tax legislation is crucial. Being up to date ensures an understanding of how changes to the code might affect your company’s qualifying R&D activities

To overcome the challenge of ever-changing tax laws, taxpayers should engage experts who specialize in R&D tax credits.

Staying Compliant and Audit Ready
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TaxConnections is searching for Board Advisors to help build out our next stage of development. Prefer tax professionals who want to retire early from the tax profession and do something different. If you feel you can make a difference in our growth and development, we are interested in speaking with you about coming in as an active participant to grow us.

Taxes are increasing on taxpayers from every angle you can imagine. We seek active participants who are motivated to help tax advisors and taxpayers. We just received a message from Carl DeMaio that the state of California has more than 100 tax hikes on the ballot hidden and disguised which makes it difficult for people to understand. DeMaio states “CA politicians put over 100 local tax hikes on the ballot across the state with deceptive titles! Worse, the statewide measures also have deceptive titles – especially Prop 5 that would gut Prop 13 and make it easier to raise taxes statewide!” Tax increases are happening across the country to taxpayers who are already tapped out. By growing our site, we can help so many taxpayers and tax advisors.

Please join as a TaxConnections Member or contact me at kat@taxconnections.com to get involved with our continued development growth. We need more tax pros on deck.

H.R. 8372, Debt Per Taxpayer Information Act, proposes to require the IRS to add this information to the bottom of Form W-2:

1) Total revenue, outlays and deficit of the Federal government;

2) Total gross Federal debt; and

3) Estimate of the pro rate amount of Federal debt for taxpayers who will file 1040s for that year.

Sounds like a good idea to me. There are many places where information about our tax and budget can be placed, including signs/posters in government buildings, lawmaker websites, and to better reach more individuals, rather than only the W-2, put the H.R. 8372 information on the bottom of Form 1099-NEC.

H.R. 8372 sponsor Congressman Arrington states that the Federal debt figure is $34 trillion or $200,000 per taxpayer!

In 1990, IRC Section 7523 was enacted to require the IRS to put 2 pie charts in the 1040 instruction booklet. One showing broad categories of revenues and the other expenditures. That may have reached people in the 1990s, but today, most people likely don’t look at any pages of the Form 1040 instructions instead relying on tax prep software or a tax return preparer for answers to questions. That information also need to be moved to places where people will see it. [See my blog post on Section 7523 from 11/10/12]

And more is needed. I’d suggest a QR code with the proposed info to add to the W-2 so people can readily go for an explanation and more information.

What do you think? Annette Nellen

As a green card holder, you are a tax resident and are taxed on your worldwide income from the date you get your green card, under the same tax laws as US citizens. You must report all income, use all applicable deductions and credits, and meet federal and state tax obligations. Knowing these requirements is key to keeping your status and avoiding penalties. This article will cover the main tax filing requirements for green card holders. Additionally, maintaining relationships with a foreign country can be significant for tax benefits and residency qualifications.

WHAT ARE THE TAX FILING REQUIREMENTS FOR GREEN CARD HOLDERS?

FILING IRS FORM 1040 AS A US RESIDENT
Green card holders must file IRS Form 1040 as US residents. This form is used to report annual income and calculate the amount of federal income tax owed or refund due.

STANDARD FILING THRESHOLDS
The filing thresholds for green card holders depend on their filing status and age. For 2023:

Single: $13,850 (under 65), $15,700 (65 or older)
Married Filing Jointly: $27,700 (both under 65), $29,650 (one spouse 65 or older), $31,500 (both 65 or older)
Head of Household: $20,800 (under 65), $22,650 (65 or older)
Self-Employed: Must file if net earnings are $400 or more

Even if income is below these thresholds, green card holders must file if self-employed and earn $400 or more annually.

HOW DOES FILING STATUS AFFECT TAX FILING REQUIREMENTS FOR GREEN CARD HOLDERS?
For green card holders, selecting the correct filing status is crucial as it directly impacts your tax rates and filing requirements. Here’s a breakdown of the main filing statuses:
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The June 2018 U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc. reshaped the landscape of sales tax obligations across the United States, ushering in the era of economic nexus. This landmark decision overturned the previous requirement of physical presence for establishing nexus, opening the door for states to enact economic nexus legislation. Alongside this shift, a new focus on the concept of trailing nexus emerged, presenting a continuation of tax obligations even after a business no longer meets the nexus criteria.

In this article, we’ll define economic nexus and trailing nexus, and how the two may dictate your tax obligations regarding the states in which you operate. Here’s what we’ll cover:

Understanding Economic Nexus and Thresholds: Discusses economic nexus thresholds and varying state regulations.
What Is Trailing Nexus? Defines trailing nexus.
Examples of Trailing Nexus Policies: Explores examples of trailing nexus policies by state.
Practical Considerations for Businesses: Discusses tips on how to handle trailing nexus in your state.
Not what you’re looking for? Let’s talk. Reach out to us at info@milesconsultinggroup.com.

1. Understanding Economic Nexus and Thresholds
Economic nexus, as per the nexus definition, refers to the connection between a business and a state based on economic activity rather than physical presence. Each state sets its own threshold for economic nexus, determining when a business is required to collect and remit sales tax. For instance, in Arkansas, the nexus law sets the threshold at $100,000 in sales or 200 separate transactions, whereas in California, it’s $500,000. These thresholds vary significantly from state to state, adding complexity to sales tax compliance for businesses operating across multiple jurisdictions.
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The Internal Revenue Service offers several amnesty programs designed to help delinquent taxpayers come into compliance with their tax obligations. These programs provide opportunities for taxpayers who have not filed tax returns or reported income in previous years to rectify their tax situation without the risk of heafty penalties.

Whether you’re dealing with unreported foreign bank accounts, unpaid back taxes, or the aftermath of renouncing U.S. citizenship, understanding these amnesty programs can be your key to financial peace of mind. Let’s dive into how these IRS initiatives can help you meet your tax obligations and secure a fresh start.

WHAT ARE IRS AMNESTY PROGRAMS?
The tax amnesty programs are initiatives designed to encourage taxpayers to voluntarily disclose unpaid taxes and file delinquent tax returns for previous tax periods. These programs aim to increase tax compliance and boost tax revenues by offering relief from penalties. By participating in an IRS amnesty program, taxpayers can reduce their tax liabilities and avoid criminal prosecution.

These programs allow individuals and businesses to voluntarily disclose unpaid taxes and correct their tax filings without facing the full extent of interest and penalties usually imposed by the IRS. Many amnesty programs offer a waiver of penalties and interest for taxpayers who come forward, significantly reducing the financial burden of resolving filing obligations. The programs can cover a range of tax types, including personal income tax, and business taxes. Additionally, by disclosing unpaid taxes through an amnesty program, taxpayers can avoid criminal prosecution for tax evasion and other related offenses. Taxpayers must meet specific criteria to qualify for amnesty, such as having unpaid tax owing for periods prior to the current fiscal year.
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For the summer Olympics of 2016, I wrote an article on what a State Tax Decathlon could look like. Here are the events:

The Jock Tax Challenge – calculate state taxes for professional athlete
Multistate File and Plan for individual with activities in 10 states
The Business Split – calculate state taxes for multistate business in states with differing sourcing and apportionment
Nexus Confidence – based on given facts, does taxpayer have nexus in the state?
Amicus Drafting – research and draft brief with references to at least 30 cases
Power of the People – draft ballot materials for a state tax initiative
Harmony – draft federal legislation acceptable to all stakeholders
Dust It Off – persuade a state legislature to hold hearing and take action on a report of a state tax commission
Base Broadening – make convincing arguments on why a state tax incentive for business should be repealed
Tax Literacy – design education plan for high school students to understand their state’s tax system and compliance obligations

For more details, see “The State Tax Decathlon,” Tax Notes State, 9/12/16 (with some background on the decathlon too).

For the summer Olympics of 2020, I wrote about “The State Tax Pentathlon,” Tax Notes State, 8/16/21 (the 2020 Olympics were postponed to 2021 due to Covid). One of the tax events: Speed Answering — Like the horse riding and jumping event where athletes do not know the horse they will be assigned, contestants must answer questions from the taxpayer and practitioner phone lines of any 12 randomly selected state tax agencies. Points are awarded for accuracy, clarity, and politeness.

I’m not writing about the 2024 Olympics due to time constraints, BUT, what would you suggest to update my decathlon list form 2016?

Professor Annette Nellen Requests Your Ideas For The 2024 Olympics