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Category Archives: CALIFORNIA
California Franchise Tax Board Tax News August 2009
Registered Warrants Can Pay Your State Income Tax Bill
[The FTB will] accept California registered warrants (IOUs) as payment of current and past due personal and corporate tax obligations. / more+
State’s New Home Tax Credit Gone
[The FTB] stopped accepting applications for the new home tax credit at midnight, Thursday, July 2, 2009. / more+
FTB Provides Guidance for California Treatment of the Revised Texas Franchise Tax
On July 20, 2009, [the FTB] responded to the request for taxpayer guidance to determine the general eligibility for the Other State Tax Credit (OSTC) and the deductibility of the Revised Texas Franchise Tax (RTFT). / more+
Did You Know [the FTB works with others]?
[The FTB] came together with the Board of Equalization, Employment Development Department, and the IRS in a cooperative partnership called the Joint Tax Agency Communications Committee. / more+
15th Annual Tax Practitioner/IRS Town Hall Meetings
In September, [the FTB] will be working with the IRS and other state agencies at the 15th Annual Tax Practitioner/IRS Town Hall Meetings. / more+
Striking Gold in California
Striking Gold in California is an educational tool for small business owners that provide basic tax information from the Internal Revenue Service and the three California tax agencies, all in one place. / more+
Small Business
Converting a California LLC to a Corporation
[Do you want] to convert [your] limited liability company (LLC) to an S-Corporation and continue to have the profits and losses flow through to its members? Did you know that you can convert an LLC into an S-corporation by making an election? / more+
Systemic Issue Management System (SIMS) at Work
This month, I share the efforts we are taking by discussing an issue that was submitted to us and our response… / more+
Our monthly summary on bringing tax criminals to justice, and closing the tax gap one case at a time. / more+
Disclosing Deferred Intercompany Stock Account (DISA) Balances
FTB issued Notice 2009-5 on July 17, 2009, to extend the due date until October 15, 2009, for taxpayers to file a completed FTB Form 3726, Deferred Intercompany Stack Account (DISA) and Capital Gains Information. / more+
2009 California Tax Law Changes
Estimated Tax Payments – Installments due for each taxable year beginning on or after January 1, 2009 are now required to be 30 percent of the required estimated tax liability for the 1st and 2nd required installments and 20 percent of the required estimated tax liability for the 3rd and 4th required installments. Prior to this law change, installments were made in four equal (25%) payments.
Taxpayers with adjusted gross income over $1,000,000 ($500,000 for married/RDP filing separately) may no longer compute estimate payments based on 100% of the tax shown on the return of the preceding year. Estimates must be based on the current years income.
Taxpayers with a tax liability less than $500 ($250 for married/RDP filing separately) do not need to make estimated tax payments.
Electronic Payments – Taxpayers are required to remit their payments electronically if they make an estimated or extension payment exceeding $20,000 for taxable year 2009 or the total tax liability shown on their original 2009 tax return exceeds $80,000. Once you meet the threshold, all payments regardless of amount, tax type or taxable year must be remitted electronically. Electronic payments can be made using Web Pay on FTB’s website, by using electronic funds withdrawal (EFW) as part of the e-file return, or by using your credit card.
Any taxpayer required to remit a payment electronically who makes a payment by other means, shall pay a penalty of one percent of the amount paid, unless it is shown that the failure to make a payment as required was for a reasonable cause and was not the result of willful neglect.
Net Operating Loss – For taxable years beginning in 2008 and 2009, California has suspended the net operating loss (NOL) carryover deduction. Taxpayers may continue to compute and carryover an NOL during the suspension period. However, taxpayers with net business income of less than $500,000 or with disaster loss carryovers are not affected by the NOL suspension rules.
The carryover period for suspended losses is extended by:
• Two years for losses incurred in taxable years beginning before January 1, 2008.
• One year for losses incurred in taxable years beginning on or after January 1, 2008, and before January 1, 2009.
Also, NOL carrybacks, NOL carryovers, and the number of taxable years to which the loss may be carried, are modified. For more information, see form FTB 3805V, Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations – Individuals.
Stacie's Tax Stuff 