Entities paying more than $10.00 of federal tax exempt interest or interest-dividends that were earned on bonds issued by a state or local government other than California are required to provide an information return to the Franchise Tax Board. This requirement is defined under California Revenue and Taxation Code Section 18639 and applies to individuals and partnerships with a California address.
If you have 250 or more accounts, you mustprovide the information to the Franchise Tax Board on magnetic media. If you have less than 250 accounts, you must report the information on magnetic media or in paper form.
If you have questions on reporting requirements for tax-exempt bond interest, call the Franchise Tax Board at (916) 845-6660. To obtain technical assistance with submitting information on magnetic media or paper, call the Franchise Tax Board Magnetic Media Office at (916) 845-3778.