The FTB has once again issued letters to targeted taxpayers with large Schedule A itemized deductions or large Schedule C expenses, this time for tax year 2021. The FTB successfully used this strategy two years ago for tax returns filed for 2019. The benefit to...
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FTB
A Warning to Taxpayers: Major Online Filing Services May Be Selling Your Data!
Last week, investigative journal, The Markup, published their investigation into H&R Block, Tax Act, and TaxSlayer and concluded they have been “quietly transmitting” taxpayers’ data to Facebook. Sensitive information, including income, refund amounts, and even...
Student Loan Debt Not Forgiven From Taxes In California
President Biden’s Student Loan Debt Relief Plan will cancel up to $20,000 of debt to Pell Grant recipients, and up to $10,000 to non-Pell Grant recipients. The California Franchise Tax Board is reminding those eligible for the relief (those with individual income less...
The California FTB Updates Guidance Adding Reporting Requirements to Corporations
The California FTB recently issued FTB Pub 1008, Cal.FTB (rev. 7/22) updating taxpayer requirements to notify the FTB of federal tax changes to gross income, deductions or tax credit that became final, even if there is no increase in tax due to California. The FTB...
American Catalog Mailers Association Files Lawsuit Against the FTB Regarding the Loss of the Protections of PL 86-272
In its first Technical Advice Memorandum (TAM) of the year, TAM 2022-01, the California Franchise Tax Board (FTB) set forth a new interpretation of the protections of Public Law 86-272 (PL 86-272). By May 2022, the FTB also issued Guidance 1050 further expanding on...
FTB Clarifies what is Taxable to a Nonresident’s Sale of a California Partnership Interest
The FTB issued Legal Ruling 2022-02 on July 14, 2022 to address the taxation on the sale of certain partnership assets by a nonresident of California. The sale of the partnership interest is a tangible asset, sourced and taxed to the taxpayer’s state of residence....
FTB First Time Penalty Abatement Proposed
The FTB may be getting on board with the IRS by offering a first-time penalty abatement for qualified taxpayers. The relief would begin with tax year 2022 and provide one-time relief of failure-to-file or failure-to-pay penalties. This is just one of the provisions...
Thinking of Closing Your Business?
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...
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...
