Posts tagged "California"

FTB Increases Interest Rates

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.

Shippers May Be Liable for Wage Payments Related to Certain California Port Trucking Companies

Effective January 1, 2019, under California Labor Code Section 2810.4, customers of certain port trucking companies may be held liable for unpaid wages due to commercial truck drivers, as well as any related assessments. According to the DLSE:

California Considers Text Messaging Tax

The California Public Utilities Commission recently released a decision finding that text messaging services could be subject to Public Purpose Program surcharges, as suggested by Commissioner Carla J. Peterman. The proposed decision does not have legal effect at this time, and the Commission is opening an additional phase during which it will consider transparency, competition, and methods to implement the proposed fees. For more information, click here: http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M238/K227/238227359.PDF.

California Assembly Members File Competing Bills Following California Supreme Court Dynamex Decision

January 24, 2019 Update:  On January 17, 2019, Assembly Bill AB 71 (Melendez) (seeking to statutorily supersede the narrow holding in Dynamex, by codifying the widely accepted factors in Borello) was referred to the Assembly Committee on Labor & Employment. Assembly Bill AB 5 (Gonzales) (seeking to codify Dynamex and clarify the decision's application in state law) is an active bill and pending referral to a committee.

California Updates 2018 Tax Rates and Exemptions

The California Franchise Tax Board (FTB) recently updated its list of individual and corporate tax rates, exemption credits, and other fees and requirements for 2018, based upon the state rate of inflation. The current California tax rate for corporations (not banks or financials) is 8.84%, and the maximum rate for individuals is 12.3%. For additional details, click here.

Californian Gets Prison Time for Failing to Report Over $1 Million in Marijuana Sales

A California real estate professional was recently sentenced to 2 years in prison for filing false income tax returns that failed to report over $1 million in cash earned through marijuana sales made between 2012 and 2014. In addition, he was ordered to serve one year of supervised release and pay $466,707 in restitution to the IRS.

FTB Top Tax Debtors Owe California Over $646 Million

The Franchise Tax Board (FTB) recently published its updated list of California's top 500 tax debtors, comprising both individuals and businesses that now collectively owe the state more than $646 million in income tax. Since October 2007, this list is updated twice annually. Taxpayers who receive notice of the FTB's intent to include them on the list and then make arrangements to pay their tax debt are removed from the publication.

Ninth Circuit Confirms Tribal Manufacturers Are Subject to Tobacco Excise Tax

The U.S. Court of Appeals for the Ninth Circuit issued an opinion in U.S. v. King Mountain Tobacco Co., affirming that tribal manufacturers of tobacco products on land held in trust by the United States are subject to the federal excise tax on manufactured tobacco products. The case began as an issue of delinquent excise taxes, which the tribal entity paid until 2009 when it fell into arrears. In the recently decided case, the tribal entity claimed an exemption to these taxes under the General Allotment Act of 1887, 4 Stat. 388, and the Treaty of the Yakamas of 1855, 12 Stat. 951.

California Drafts Plans for Sales Tax Regulations in Wake of Wayfair Decision

Back in June, the U.S. Supreme Court issued a decision in South Dakota v. Wayfair, Inc. that reversed Quill's requirement for physical presence to establish sales tax nexus for out-of-state businesses. Individual states are now hurrying to decide upon economic or transactional thresholds to govern who should be collecting and paying over sales tax concerning primarily e-commerce sales.

Tax Agencies Offering Relief to Californians Affected by Wildfires

Federal and California state tax agencies have offered relief to certain taxpayers affected by the 2018 wildfires in Northern California. The Internal Revenue Service will postpone specific deadlines, waive penalties, and provide other relief as detailed here. The California Franchise Tax Board's list of qualified disasters and instructions for claiming relief can be found at this link. The California Department of Tax and Fee Administration (formerly the BOE) is also offering relief for businesses impacted by the fires, including extensions to file returns and relief from certain penalties or interest. Details on the specific CDTFA programs offering relief, and instructions for requesting relief, are available here.

Contact the Law Office of Williams & Associates

For more information about our tax law services, or to discuss your tax matter, call our Sacramento office at (916) 488-8501 or toll free at (800) 684-7147. You may also send us an inquiry via email.

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