California Tax Law Blog

The Internal Revenue Service (IRS) recently issued a warning about a new phone scam involving fake calls from the Taxpayer Advocate Service (TAS). Tax scammers are using "spoofed" TAS phone numbers to contact potential victims to obtain personal information and payments. The IRS reminds taxpayers that TAS does not typically initiate calls to taxpayers, unless the taxpayer has requested assistance first.

Arizona Attorney General Mark Brnovich recently asked the U.S. Supreme Court for permission to file suit against the State of California over the $800 minimum business tax imposed on investors in certain LLCs. Brnovich contends that the California minimum tax, and California's related collection efforts when investors or businesses do not pay, is illegal because the investors have "purely passive investments in California companies." In addition, since the $800 minimum tax is deductible on Arizona tax returns, the California practice is costing Arizona more than $484,000 annually.

The California Franchise Tax Board (FTB) recently announced that interest rates for personal income tax underpayments and overpayments, corporate underpayments, and estimate penalties will increase to 6 percent for 2019.  The corporate overpayment interest rate will increase to 2 percent this year.  For more information, click here.

The U.S. Senate is scheduled to vote to confirm Michael Desmond as Internal Revenue Service (IRS) Chief Counsel as soon as this week, and to IRS Commissioner Chuck Rettig, confirmation would be a benefit to the tax agency.