Over the past year many California businesses have faced difficult choices, including the decision to remain operating, or to shut down. For those who have ceased business, it is important to make sure you have legally terminated your entity with the State of...
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Tax Treatment of PPP Loans in California
Many tax preparers and businesses are wondering about the status of PPP loan deductions when preparing their state income tax returns this year. While the federal government has provided that businesses may deduct the expenses covered by the PPP loans, the California...
2020 Tax Return Tips
As you begin preparing to file your 2020 income tax returns, the IRS shared some important tips. Their first quick tip is to electronically file returns and to choose direct deposit. Since the USPS has had more issues and delays than ever, going electronic is the...
FTB Helps Cannabis Businesses
The FTB has a new form for reporting cannabis deductions in 2020. Form 4197 will allow taxpayers involved in commercial cannabis activity to report deductions, credits, exclusions, and exemptions. The FTB plans to send over 5,000 “Welcome Letters” to licensed cannabis...
California Provides Nexus Relief
What happens when an out-of-state business suddenly has an employee working from home in California due to COVID-19, and in accordance with Governor Newson’s Executive Order N-33-20, the “Stay at Home” Order? A corporation may be concerned that while it had no...
Trusts with California Income are Taxable in California
A California Appellate Court recently held that all of a trust’s California source income is taxable in California, regardless of the state of residence of the trust’s fiduciaries. The Court clarified that it is non-California source income that is dependent on the...
FTB Relief Related to COVID-19
The FTB has announced an extension of time for taxpayers to file their tax returns and make payments to the FTB. This applies to individuals and businesses with a California tax return or payment due between March 15th and June 15th. Taxpayers do not need to be...
FTB Top Tax Debtors Owe California Over $581 Million
The Franchise Tax Board (FTB) recently published its updated lists of California's top 500 individual and top 500 business tax debtors, who now collectively owe the state more than $581 million in income tax. Since October 2007, this list is updated twice annually....
Better Pay Online! Paper Payments to FTB Significantly Delayed in June
The California Franchise Tax Board (FTB) recently issued a news blast that many payments sent by mail to the state tax agency in June were delayed significantly due to post office issues. When the mail finally caught up on June 9th, the FTB received some 115,000...
FTB Update on 2019 Tax Filing Season
The California Franchise Tax Board (FTB) recently released some initial data on the 2019 tax filing season. As of June 1st, the FTB had processed 17.4 million personal income tax returns, a vast majority (88%) of which were e-filed. A total of $11.7 billion in...
