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Tag Archive for Franchise Tax Board

Busy Season Updates – Tangible Property Regulations And Affordable Care Act

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Well into the start of busy season, the IRS issued important guidance on some parts of the Affordable Care Act (ACA) and how small businesses can adopt the tangible property regulations (TPR).  I’ve got a summary of the ACA updates (and beyond) in a short article in the 3/12/15 AICPA Tax Insider – An update on Affordable Care Act busy season developments.

Here is my summary of the TPR items as well as a recent news release by the California Franchise Tax Board on conformity with TPR.

Policy Item: Both the ACA items (particularly the relief from the $100/employee/day penalty for health reimbursement arrangements (HRAs) that violate ACA provisions), and the TPR Read more

Why You Don’t Mess With California – A Primer On California Tax Collection Actions

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California is unique in the structure of its tax system. Most States operate under a single tax agency. The Federal government uses a single tax agency called the IRS. But California has three tax agencies! They are the Franchise Tax Board (“FTB”), Board Of Equalization (“BOE”) and the Employment Development Department (“EDD”).

What does FTB cover?

The FTB administers the income tax. This tax applies not only to individuals, but also to sole proprietorships, partnerships, estates, and trusts. In addition, the income “passed through” to individuals by Subchapter S corporations and certain other entities is subject to State Personal Income Taxation. The tax is applied to all sources of income unless specifically excluded, including wages and salaries, interest, dividends, business-related Read more

California Competes Tax Credit Now Accepting Applications

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The California Competes Tax Credit is an income or franchise tax credit available to businesses that come to California or stay and grow in California. Tax credit agreements will be negotiated by Governor’s Office of Business and Economic Development (GO-Biz) and approved by a newly created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz (Chair), and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.

For fiscal year 2013/2014, applications for the California Competes Tax Credit will be accepted at calcompetes.ca.gov from March 19, 2014, until April 14, 2014. Go to business.ca.gov for more information on the California Competes Tax Credit. Read more

Franchise Tax Board – First-Time Abatement Proposed

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The Franchise Tax Board has proposed a bill which would provide penalty relief for taxpayers who fail to timely file a tax return or fail to timely pay an income tax liability. This relief would be available for individuals and corporations and would mirror the federal program offered by the IRS. If enacted in 2014, the program would be available for requests made on or after January 1, 2015.

To read the full proposal, click here.

In accordance with Circular 230 Disclosure

 

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California State Tax Filing Season Is Officially Open – Part V

Examining Tax Law

The Franchise Tax Board (FTB) announced it is now accepting 2013 state tax returns. Also, the FTB provides the following updates on law changes and filing services brought to you in this blog series – Part V.

AB 93 replaces the G-TEDA tax incentives with the New Employment Credit (NEC), the California Competes Credit, and statewide partial sales and use tax exemption for certain manufacturing and research and development equipment.

The New Employment Credit (NEC) is a California income tax credit available to employers for taxable years beginning on or after January 1, 2014, and before January 1, 2021. To obtain a credit a qualified taxpayer must hire a qualified full-time employee on or after Read more

California State Tax Filing Season Is Officially Open – Part IV

Examining Tax Law

The Franchise Tax Board (FTB) announced it is now accepting 2013 state tax returns. Also, the FTB provides the following updates on law changes and filing services brought to you in this blog series – Part IV.

Tax Tips

• Volunteer Income Tax Assistance – Starting in February, free tax help is available through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly Programs (VITA/TCE). Trained volunteers at more than 1,000 sites throughout California provide free help to complete tax forms for low-income, senior, disabled, and non-English speaking persons who need to file simple federal and state tax returns. Read more

California State Tax Filing Season Is Officially Open – Part III

Examining Tax Law

The Franchise Tax Board (FTB) announced it is now accepting 2013 state tax returns. Also, the FTB provides the following updates on law changes and filing services brought to you in this blog series – Part III.

Filing Information

Free Do-it-Yourself Services – FTB encourages taxpayers and practitioners to explore its many self-service applications available through FTB’s website:

• CalFile makes filing easier – CalFile is one of FTB’s free, easy-to-use e-file options available to more than 6.4 million taxpayers. CalFile accepts taxpayers with income of up to $345,235, itemized deductions, and some tax credits. Read more

California State Tax Filing Season Is Officially Open – Part II

Examining Tax Law

The Franchise Tax Board (FTB) announced it is now accepting 2013 state tax returns. Also, the FTB provides the following updates on law changes and filing services brought to you in this blog series – Part II.

2013 Short Sellers Get State Tax Relief – According to an IRS Information Letter dated September 19, 2013, the IRS has determined that California taxpayers who sell their principal residences where the lender agrees to a short sale for less than what is owed on the home are relieved of incurring cancellation of indebtedness income, which may have been taxable. Instead, the amount of cancelled debt is included in the amount realized in determining gain on the sale of that residence. Read more

California State Tax Filing Season Is Officially Open – Part I

Examining Tax Law

The Franchise Tax Board (FTB) announced it is now accepting 2013 state tax returns. Also, the FTB provides the following updates on law changes and filing services brought to you in this blog series – Part I.

What’s New for Individuals

Standard deduction – The standard deduction for single or filing separately tax statuses increased to $3,906. For joint, surviving spouse, or head of household filers, it increased to $7,812.

Exemption credit increases – The dependent exemption credit increased to $326 per Read more

Are You Inadvertently Doing Business In California?

LLC Members And Partners – The Franchise Tax Board Says You Are Doing Business In California…  Are You?

Effective January 1, 2011, California defines “doing business” in the state under Cal. Rev. & Tax Cd. §23101 as any active business having any of the following attributes:

•  Organized or located in California;
•  California sales exceeding the lesser of $500,000 or 25% of total sales;
•  Property  located in California exceeding the lesser of $50,000 or 25% of total property; or
•  California wages exceeding the lesser of $50,000 or 25% of total wages paid.

Sales are attributable to California if property is delivered within the state or is shipped from the state and the purchaser is the United States government or if no other state taxes the sale.

For service sold on or after January 1, 2013, California lays claim if:

•  The purchaser of the service receives benefit of the services within California such as the repair of a computer for a user in that state;
•  Sales of securities, insurance, or other intangible assets to California residents;
•  Sales, leases, rental, or licensing of California real estate or other property.

 See Cal. Rev. & Tax Cd. §25136. Read more

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