California counties will not automatically reassess homes due to the recent fires, because the law requires that the counties first receive an application from the homeowner. Those who lost property will need to file the appropriate county casualty abatement form for the 2016-2017 year.
If your company contracts with the Department of Defense, General Services Administration, or the National Aeronautics and Space Administration (NASA), you have one more reason to be compliant with your federal tax obligations: Effective September 30, 2016, these agencies will no longer award contracts to corporations having delinquent Federal tax liabilities or a felony conviction under any law. This includes any assessed liabilities such as unpaid income tax, employment tax, payroll withholdings, and social security and Medicare taxes that are not contested or paid on time.
When it's time to close a business in California, there are many important steps that must be followed to ensure the requirements of the IRS and the California tax agencies are met. Failing to do so can result in the tax agencies coming back years later to collect tax on income you may not have earned, or tax on workers you no longer employed. Different rules apply depending on the type of entity and whether there are shareholders, assets to distribute and employee benefit or retirement plans in place. In addition to filing final income tax returns, business owners should also be sure to file other applicable final tax returns including sales and use tax returns and employment tax returns. The IRS, California Franchise Tax Board, Board of Equalization and Employment Development Department each provide guidance on the steps to following when closing a business.
Today the Financial Crimes Enforcement Network (FinCEN) issued an advisory to financial institutions to draw attention to two lists of jurisdictions that were recently updated by the Financial Action Task Force (FATF).
The Organization for Economic Cooperation and Development (OECD) has identified four steps necessary for transparency and the automatic exchange of information regarding financial accounts through a cost effective and secure system, in an effort to end offshore tax evasion. On June 18, 2013, the OECD issued a report regarding the need to create a more equitable and transparent global tax system to the Group of Eight (G8), a forum for the governments of eight of the world's eleven largest national economies.
As tax season rapidly speeds by, it's probably a good time for those with tax problems from prior years to take some action to try and resolve those issues. A person who struggles with tax debt often falls into a deep cycle of self-perpetuating procrastination. In California and throughout the country, there are some options open to a person who faces intimidating back tax debt.
The Franchise Tax Board (FTB) is having a public hearing regarding its Financial Institution Records Match (FIRM), one of its most important tools in the collection of delinquent tax liabilities. The hearing is scheduled for 1:00 p.m., on Wednesday, March 27, 2013, at the Franchise Tax Board, 9646 Butterfield Way, Town Center, Valley Quail Room, Sacramento, California. The hearing will allow interested parties to weigh in on the FTB's administration of FIRM, an enforcement tool used to collect delinquent taxes and non-tax debts of individuals and business entities.
California entrepreneurs were likely very surprised recently when they found out they were liable for paying four years' worth of taxes to the state that they were previously not required to pay. Last December, the Franchise Tax Board eliminated a capital gains tax break that had been in place for 20 years and sent out notices to business owners just before Christmas that they were liable for back taxes, plus interest, to 2008. This affects roughly 2,500 entrepreneurs and investors in our state.
Tax issues can follow an individual for a long time if they choose not to address it by coming to an agreement with the IRS on how they will pay this debt. However, what if an individual claims to have paid the tax debt but still gets a bill years later? A California man has claimed that he paid his taxes that the state says he still owes, though it is unclear how the man will be able to prove his position.
Each year there is a substantial issue to be addressed for those businesses that owe taxes to state and federal agencies. Although companies are usually given notice of their tax debt obligations, there are some who simply cannot afford to pay these taxes at the end of the year. In California, the State Tax Board has made a list of the top 500 businesses that owe the most taxes. However, many questions have been raised about the effectiveness of this collection effort.