Tax News December 2019

Current edition

• Standard deductions, exemption amounts, tax rates, and doing business thresholds updated for 2019

  Check out what’s new for the 2019 tax season.

• New Employment Credit - Changes beginning in January 2020

  The New Employment Credit (NEC) is a California tax credit that encourages hiring and employment in parts of the state.

• Partnership Level Tax? Only after Centralized Federal Partnership Audit

  The Partnership Level Tax (PLT) line on forms FTB 565 or FTB 568 allows partnerships and LLCs to report to us changes or corrections made by the IRS under the centralized partnership audit regime.

• Administrative dissolution program

  There are two administrative dissolution pathways to dissolve or cancel a business entity.

• Updated withholding regulations and new forms

  Updates were made to the withholding regulations that may affect your tax preparation for any nonresident withholding and real estate.

• Demand letters for FTB 3840, California Like-Kind Exchanges, going out in December

  If taxpayers do not respond within 30 days to the demand letter, we may open an audit for the tax year.

• What is the 15-day rule?

  When deciding to form a corporation or LLC, it is important to keep the 15-day rule in mind.

• Update on the new Minimum Essential Coverage Individual Mandate

  The Franchise Tax Board and Covered California are working together to administer the new Minimum Essential Coverage Individual Mandate.

• Ghost tax preparers

  Our California Tax Education Council (CTEC) Enforcement Team within the Filing Compliance Bureau is conducting a pilot program focused on ghost tax preparers.

• Website content retention
  

  Here’s a list of items we provide on our website, how long they're available, and how often they are updated.

• Free legal assistance for your clients
  

  As a tax professional, you may have filed an appeal or are preparing to file an appeal with the Office of Tax Appeals on behalf of your clients.

• Ask the Advocate

  Closing out 2019 and looking ahead to 2020

• All About Business

  Public Law 86-272: How does this Federal law affect your requirement to file in California?

• Event Calendar

Have a topic or tax question you’d like us to address? We want to hear from you! Submit your ideas to us: taxnews@ftb.ca.gov