July 2009Enterprise Zone – Nonprofits May be Allowed Net Interest Deduction
The new adjusted interest rate for the period July 1, 2009, to December 31, 2009, is five percent, the same rate that is in effect for January 1 through June 30, 2009. / more+
Tax Credit for New Home Purchase Update
This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. / more+
Tax Return Volunteers Wanted!
In California, did you know that nearly $1 billion in Earned Income Tax Credit dollars goes unclaimed each year? / more+
Update Your Client’s Address When They Move Out of State
We want to get the message out regarding the importance of keeping addresses current with us when your client moves out-of-state. / more+
CTEC Decides Against Fee Increase
The California Tax Education Council (CTEC) recently announced it plans to increase the registration fee from $25 to $35 and the late fee from $13 to $15. However… / more+
Audit/Protest/Appeals
Our publication, FTB 985, Audit/Protest/Appeals, can help you inform your clients about the audit process. / more+
Failure to Withhold Makes You Liable
Beware that if you pay California source income to nonresidents of California, you must withhold and send us seven percent of all payments that exceed $1,500 in a calendar year. / more+
Rate Increase for Withhold at Source
For taxable years beginning on or after January 1, 2009, the maximum personal income tax rate is increased to 9.55 percent. / more+
Foreclosure and Short Sales
If a lender forecloses on my principal residence or agrees to a short sale, will I owe tax on the deficiency? / more+
Small Business
Converting a California LLC to a Corporation
Does your client want to convert their limited liability company (LLC) to a corporation? Did you know that converting an LLC into a corporation is as easy as checking a box? / more+
Ask the Advocate
Where’s Our Advocate?
First, I thank the California Society of Enrolled Agents for the invitation to present at its California State Tax Agencies Representation (C-STAR) workshop held in San Diego last month. / more+
Inside FTB
Head of Household Audit Questionnaires Coming in July
The 2008 head of household (HOH) season is just around the corner. In July, we begin mailing audit questionnaires. This year we expect to send approximately 130,000 HOH Audit letters for the 2008 tax year. / more+
Criminal Corner
Our monthly summary on bringing tax criminals to justice, and closing the tax gap one case at a time. / more+
Big Business
Ponzi Scheme Losses and Amended Returns
On March 17, 2009, the IRS issued Revenue Ruling 2009-9 and Revenue Procedure 2009-20 providing guidance to taxpayers who are victims of losses from Ponzi-type investment schemes. / more+