Tax News April 2026

March Tax News Flash and Newsroom Posts

March 6, 2026 — Correction to Individual Shared Responsibility Child Dependent Penalty Amount

March 3, 2026 — Secretary of State Business Entity Identification Numbers for Tax Returns and Payments

When to File FTB Forms 3872 and 5805: Clearing Up Disaster Postponement Confusion for Tax Professionals

When federal and California postponement dates align, Form 3872 is not required. The key is properly reflecting the disaster designation on the return.

To better clarify for tax practitioners, and how to correctly reflect disaster postponement on a California tax return.

Start with the Postponement Period

When both federal and California grant the same disaster postponement dates:

• No Form 3872 is required for filing or payment timing relief.
• The taxpayer is treated as timely if filing and payment occur within the postponement window.
• Relief is for all taxpayers in covered disaster areas.
• Go to Disaster Relief for more information.

Properly Marking the California Return

Not all Franchise Tax Board systems have the capability to automatically identify, or mark returns based on disaster-affected zip codes. Therefore, it is essential to clearly identify the disaster relief on the return:

• Paper-filed returns:
  • Write the name of the disaster (e.g., “LA County Wildfires”) in blue or black ink at the top of the return.
  • This ensures the return is routed and processed with the appropriate relief considerations
• Electronically filed returns:
  • Follow your software provider's disaster declaration instructions.
  • Most professional software includes a specific input section for California disaster relief to ensure it is completed accurately.
  • If you are unable to find disaster declaration instructions, contact your software provider’s customer service.
• Affected taxpayers outside the disaster area:
  • If the taxpayer qualifies based on records located in the disaster area (e.g., tax records, practitioner location), note the applicable disaster designation and retain documentation supporting eligibility.

Proper designation is critical as it signals to FTB that the taxpayer qualifies for postponed deadlines.

When Form 3872 Is Required

Beginning on or after June 27, 2024, the Director of Finance shall determine when IRC Section 7508A, related to postponement of certain federal tax-related deadlines, applies for California purposes to a taxpayer affected by a state of emergency declared by the Governor or a federally declared disaster. Impacted taxpayers can request an additional relief period if the state postponement period expires before the federal postponement period by filing form FTB Form 3872, California Disaster Relief Request for Postponement of Tax Deadlines.

Form 3872 is not required to validate or claim postponement of filing or payment deadlines when the state postponement period is the same as the federal postponement period.

Where Form 5805 Applies

FTB Form 5805 is used when addressing estimated tax underpayment penalties, including:

• Calculating the penalty, or
• Requesting a waiver or reduction due to reasonable cause, including disaster-related impacts.

Even with postponement relief periods, Form 5805 may still be necessary if:

• Estimated payments fell outside the relief window, or
• The taxpayer does not qualify for automatic penalty relief.

Bottom Line

In disaster years, compliance is often simpler than it appears. When federal and California postponement periods align, relief is automatic but only if the return is properly marked with the applicable disaster designation. Both the FTB 3872 and 5805 have importance, but very specific uses. When they are filed unnecessarily, they can delay processing. A clear understanding of when these forms are needed improves process efficiencies and ensures taxpayers receive disaster relief without extra reporting.

Understanding when to file and what forms to file (or not file) ensures accuracy, avoids unnecessary forms, and keeps your clients fully aligned with California’s disaster relief provisions.

Updates for Bulk Sale Transactions 

What was formerly called a bulk sales certificate is now the buyer’s withholding clearance certificate. However, the transaction itself is still referred to as a bulk sale.

The updated certificate name simply clarifies its purpose to confirm whether the seller owes withholding taxes or associated interest and penalties, and once issued, releases the buyer from further liability for any withholding taxes and associated interest and penalties.

The certificate does not release or relieve the seller or payer from liability for any withholding taxes, or associated interest, or penalties.

Users can also submit their request to receive a buyer’s withholding clearance certificate online. 

New Online Service - Schedule R Verification

We continue to do our best to provide new self-services and enhancements for taxpayers, the tax practitioner community, and small business owners of California to save you time and improve your ability to work with FTB.

Taxpayers and tax practitioners can now respond online with this new Schedule R Verification (FTB 4303) to provide a missing Schedule R before the tax return completes processing, with or without a MyFTB account.

For more information, go to Schedule R Verification.

Attend a Virtual Withholding Presentation 

We offer two 25-minute virtual withholding presentations followed by a Question-and-Answer session conducted through Microsoft Teams or Zoom. 

California Nonresident Withholding 

The California nonresident withholding presentation is held the second Wednesday of each month at 10 AM PST. 
We will review: 

• California nonresident withholding requirements
• Income subject to withholding
• Withholding agent requirements
• Withholding exceptions, waivers, and reductions
• Withholding liability and penalties 
• Resources
• Questions

To attend this presentation, email us at FTB CA Nonresident Withholding Education.

California Real Estate Withholding 

The California real estate withholding presentation is held the third Tuesday of each month at 10 AM PST. 
We will review:

• Real estate withholding requirements 
• Common mistakes made on Form 593, Real Estate Withholding Statement
• Withholding responsibilities
• Installment sales
• Trusts 
• Foreign sellers 
• Limited liability companies 
• Resources 
• Questions 

To attend this presentation, email us at  FTB Real Estate Education. 
For the latest information, subscribe to nonresident withholding and real estate withholding. 

Internal Revenue Service (IRS) Updates 

We partnered with the IRS to provide monthly articles to assist our tax professional and small business communities and are excited to share this information; however, questions about the content should be directed to the IRS. 

Tax Time Guide: Steps taxpayers can take now to resolve tax issues and stay on track

IR-2026-41, March 26, 2026 — Taxpayers who owe taxes or have not yet filed can benefit from acting early.

IRS announces special Saturday hours at Taxpayer Assistance Centers across the nation to provide face-to-face help

IR-2026-40, March 25, 2026 — The IRS announced that special Saturday hours will be available over the next few months at select Taxpayer Assistance Centers across the country.

Time is running out to claim $1.2 billion in refunds for tax year 2022; taxpayers face April 15 deadline

IR-2026-37, March 20, 2026 ― The IRS announced that over 1.3 million people across the nation have unclaimed refunds for tax year 2022 and face an April 15 deadline to submit their tax returns.

Free options and resources for preparing and filing taxes in 2026

IR-2026-38, March 20, 2026 — The IRS reminds taxpayers who still need to file their 2025 federal tax returns that free options and resources are available on IRS.gov.

Update on IRS Commissioner position

IR-2026-36, March 13, 2026 — Consistent with applicable law and longstanding practice, the Secretary of the Treasury oversees the operations of all Treasury offices and bureaus, including the IRS. Secretary Scott Bessent’s service as Acting Commissioner of the IRS under the Federal Vacancies Reform Act has expired, and he has not served in that capacity since that time.

Updated Tax Withholding Estimator lets millions of taxpayers take One, Big, Beautiful Bill changes into account when calculating their withholding

IR-2026-35, March 12, 2026 — The IRS recently unveiled enhancements to the IRS Tax Withholding Estimator to reflect changes to credits and deductions under the One, Big, Beautiful Bill, including no tax on tips, no tax on overtime, and other tax benefits.

Treasury, IRS issue proposed regulations for Trump Accounts contribution pilot program, Treasury Department to deposit $1,000 into the account of each eligible child

IR-2026-31, March 6, 2026 — The Department of the Treasury and the IRS issued proposed regulations providing guidance regarding the pilot program for Trump Accounts, which are a new type of individual retirement account for eligible children.

IRS announces extended weekday and Saturday hours at Taxpayer Assistance Centers through spring

IR-2026-32, March 6, 2026 — The IRS announced that it is extending weekly office hours at more than 200 Taxpayer Assistance Centers nationwide to provide taxpayers with additional time to receive in-person assistance during the filing season.

2026 IRS Nationwide Tax Forum registration is now open

IR-2026-34, March 6, 2026 — The IRS announced that registration is now open for the 2026 IRS Nationwide Tax Forum, the agency’s largest annual outreach event designed specifically for the tax professional community.

Treasury, IRS issue proposed regulations on how to open initial Trump Accounts under the One, Big, Beautiful Bill

IR-2026-33, March 6, 2026 —The Department of the Treasury and the IRS issued proposed regulations providing general requirements for Trump Accounts, certain definitions relating to Trump Accounts, election rules to open an initial Trump Account by an authorized individual for an eligible individual, and rules for who is the responsible party for the initial Trump Account once the account has been opened.

Treasury, IRS issue proposed regulations to make it easier for digital asset brokers to provide 1099-DA statements electronically

IR-2026-29, March 5, 2026 — The Department of the Treasury and the IRS issued proposed regulations to make it easier for digital asset brokers to provide statements electronically to customers, rather than sending paper copies.

Dirty Dozen tax scams for 2026: IRS reminds taxpayers to watch out for dangerous threats

IR-2026-30, March 5, 2026 — The IRS announced its annual Dirty Dozen list of tax scams for 2026 that threaten the tax and financial information of taxpayers, businesses, and tax professionals.

IRS published schedule taxpayers will use to claim deductions on no tax on tips, no tax on overtime, no tax on car loans, no tax on seniors

IR-2026-28, March 2, 2026 – The IRS published, for tax year 2025, a new schedule that taxpayers will use to realize important tax benefits of the One, Big, Beautiful Bill, including no tax on tips, no tax on overtime, no tax on car loans, and no tax on seniors.

Ask the Advocate

Appreciation for the Work Behind Every Return  

As the April 15 filing deadline approaches, I want to recognize the dedication tax professionals bring to this demanding time of year. Long hours and careful attention to detail help taxpayers navigate complex tax laws. I sincerely appreciate the important role you play in supporting taxpayers. 

Tax season is also a busy time for Franchise Tax Board (FTB). I thank the FTB customer contact center staff for working very long hours providing service to all of you. FTB staff are also working diligently to accurately process returns and issue refunds as soon as possible. I hope the following last-minute tips and reminders are helpful as you move through the final stretch of filing season. 

Contact Center Information

FTB is providing additional customer service during the peak filing season, and will offer extended hours as follows:  

Contact Center	Dates	Hours	Phone Number
Customer Service	April 1 – 15 (Monday – Friday) April 11 (Saturday)	8:00 a.m. – 6:00 p.m. 8:00 a.m. – 5:00 p.m.	1-800-852-5711
Tax Pro Hotline	April 1 – 15 (Monday – Friday) April 11 (Saturday)	8:00 a.m. – 6:00 p.m. 8:00 a.m. – 5:00 p.m.	916-845-7057
Personal Income Tax Collections	April 1 – 15 (Monday – Friday)	8:00 a.m. – 6:00 p.m.	1-800-689-4776
Business Income Tax Collections	April 13 – 15 (Monday – Thursday)	8:00 a.m. – 6:00 p.m.	1-888-635-0494

Although March 31 is a state holiday, limited staff will be available for all contact centers (8:00 a.m. to 5:00 p.m.). Due to limited staffing, expect longer than usual wait times.

Go to wait times to manage the best time to call.

I highly encourage tax professionals with full online account access to use MyFTB to verify their client’s estimate tax payments and other account information. Using MyFTB for routine inquiries helps reduce call volumes and keeps phone lines available for complex matters that require live assistance. 

If you contact FTB without a valid Tax Information Authorizationor Power of Attorney on file, be prepared with your client’s account information and current tax records. This enables call center staff to verify you are authorized to receive limited information.

Update Client Information 

Now is a great time to double-check your client’s contact information. FTB receives a large volume of returned mail every year due to returns filed with inaccurate or stale addresses. While most taxpayers receive electronic direct deposit refunds, there are still times when a refund check is sent to the wrong address simply because the taxpayer failed to let their tax preparer or FTB know that they moved. Spend a few minutes to ensure your client’s information is up to date and save yourself future headaches. How to change an address.

Payments 

A reminder for taxpayers to submit separate tax payments when making payments covering two tax years to avoid unintended notices, penalties, and potential erroneous refunds. Personal income tax payments should be made separate from business entity tax payments, and from pass-through entity elective payments. Payment Information  

Online Services – Self-Service Options 

 FTB offers many online self-services and how-to-videos. To help save you time during peak demand, I encourage using FTB’s online self-service tools whenever practical. For example, if your client received a pre-suspension or suspension letter, you may go to revive a business for steps to assist your client.  

Many common tasks can be completed quickly and securely without waiting. This will help reserve contact center support for more complex issues and helps ensure faster service for everyone. 

Reference Publication 

FTB Publication 1006 California Tax Forms and Related Federal Forms provides:

• A list of FTB forms and descriptions and their federal counterparts. 
• The ability to cross-reference forms starting with either a California or federal form/schedule number. 
• Whether a federal form may be used for California purposes. 
• Forms used by individuals or the different business entities. 

Stay Vigilant to Scammers 

FTB warns taxpayers and practitioners to keep their eye out for scams this season. Threat actors target taxpayers through personal calls or emails, social media, text messages, and even correspondence. If you or your client receives suspicious contact or suspect you are the victim of a scam, FTB encourages you to go directly to the public website and report the scam.

Thank You Tax Professional Community! 

Thank you for your care, expertise, and dedication you bring to taxpayers each day, especially during filing season. Wishing you a strong and successful finish to the season.