Tax News Flash

2024

2023

  • Resolved issue—MyFTB client notices
    December 6, 2023 Tax News Flash

    Tax professionals can view all notices from their Client Notices Page in MyFTB.

  • MyFTB client notice issue
    December 1, 2023 Tax News Flash

    Tax professionals may be unable to view some notices from their Client Notices Page in MyFTB.

  • FTB extends notice 2023-02 participation period
    November 13, 2023 Tax News Flash

    FTB issued FTB Notice 2023-03 which extends the participation period of the FTB Notice 2023-02 resolution program through January 31, 2024.

  • Extended deadline: FTB conforms to IRS
    October 16, 2023 Tax News Flash

    The Franchise Tax Board (FTB) conforms to IR-2023-189 dated October 16, 2023, in which the IRS further postponed the federal tax deadline for California storm victims to November 16, 2023.

  • FTB extends customer service hours
    October 03, 2023 Tax News Flash

    For most Californians, the extended due date to file tax returns and make tax payments is Monday, October 16, 2023. In our commitment to deliver excellent products and services, we will extend our hours and be open from 8 AM to 6 PM, Monday through Friday from October 2-16, 2023.

  • California grants tax relief for hurricane, fire, and seawater intrusion victims
    October 03, 2023 Tax News Flash

    Sacramento -- The California Franchise Tax Board (FTB) today announced special state tax relief for taxpayers and businesses affected by Hurricanes Idalia and Lee, wildfires in Maui and Hawaii, and seawater intrusion in Louisiana.

  • Submit separate tax payments this filing season to avoid unintended notices, penalties, and potential erroneous refunds
    September 15, 2023 Tax News Flash

    The disaster declarations from the winter storms that were applicable to most counties of California extended the due date for multiple personal and business entity tax payments covering two tax years.

  • IRS statement on the mailing of balance due notices to California taxpayers
    June 8, 2023 Tax News Flash

    The IRS reassures California taxpayers that they continue to have an automatic extension until later this year to file and pay their taxes for those covered by disaster declarations in the state.

  • FTB extends filing deadline for taxpayers impacted by 2022-23 winter storms to Oct. 16, 2023
    March 2, 2023 Tax News FlashUpdated March 10, 2023

    The IRS announced tax relief for Californians affected by these winter storms. Taxpayers affected by these storms qualify for an extension to October 16, 2023, to file individual and business tax returns and make certain tax payments.

  • Establishing and renewing TIA and POA relationships
    February 21, 2023 Tax News Flash

    Protecting the privacy and security of data entrusted to us is one of our paramount foundational principles. As we commence the 2023 filing season, we encourage our tax professional partners to prudently establish or renew their Tax Information Authorization (TIA) or Power of Attorney (POA) relationships with their clients.

  • California grants tax relief for those affected by the recent winter storms
    January 13, 2023 Tax News Flash

    Sacramento – The state of California has announced tax relief for those impacted by the winter storms in California.

  • 2022

    • October 17 tax filing deadline approaching
      October 11, 2022 Tax News Flash

      Sacramento -- The Franchise Tax Board (FTB) today reminded taxpayers that Monday, October 17, 2022, is the deadline for filing 2021 state personal income tax returns to avoid late filing penalty.

    • California grants tax relief for hurricane Ian victims
      October 10, 2022 Tax News Flash

      Sacramento -- The Franchise Tax Board (FTB) today announced special state tax relief for taxpayers and businesses affected by Hurricane Ian.

    • FTB issues legal ruling on sourcing of gain from sale of IRC Section 751 assets
      July 20, 2022 Tax News Flash

      On July 14, 2022, Franchise Tax Board (FTB) issued Legal Ruling 2022-02 relating to California sourcing rules when a nonresident individual partner disposes of a partnership interest in a partnership that holds unrealized receivables or inventory (commonly referred to as "hot assets").

    • Filing deadline extended for class action settlement claims
      July 18, 2022 Tax News Flash

      The deadline has been extended to August 19, 2022, for affected LLCs to file claims pursuant to the class action settlement announced in FTB Notice 2022-02.

    • FTB LLC Fee Class Action Settlement
      May 9, 2022 Tax News Flash

      On Friday, May 6, 2022, the Franchise Tax Board issued Notice 2022-02 to inform limited liability companies (LLCs) and the public that the San Francisco County Superior Court has granted preliminary approval of a proposed class action settlement for the Franchise Tax Board Limited Liability Corporation Tax Refund Cases. (The Settlement)

    • FTB issues legal ruling on California's market-based rules
      April 11, 2022 Tax News Flash

      On March 25, 2022, the Franchise Tax Board issued Legal Ruling 2022-01 relating to the application of California's market-based rules in Revenue and Taxation Code (R&TC) section 25136 and California Code of Regulations, title 18, section (Regulation) 25136-2.

    • Pass-through entity elective tax could trigger mandatory e-pay requirement
      April 6, 2022 Tax News Flash

      S corporations and limited liability companies classified as S corporations whose total tax liability, including any Assembly Bill 150 pass-through entity elective tax, exceeds $80,000 are required to make all future payments electronically.

    • SOS "Dark" Period in March / April 2022
      March 29, 2022 Tax News Flash

      The California Secretary of State (SOS) is implementing the next phase of their ongoing California Business Connect Project on April 7, 2022.

    • EITC qualification expanded/credit code 242 PTE elect
      March 11, 2022 Tax News Flash

      Married/Registered Domestic Partner (RDP) Filing Separate no longer automatically disqualifies the taxpayer from being eligible for the California Earned Income Tax Credit (EITC)

    • Capital account reporting
      March 9, 2022 Tax News Flash

      Starting in taxable year 2022, and all subsequent years, partnerships and limited liability companies taxed as partnerships will be required to use the California tax basis amounts in the "Capital Account Analysis" on Schedule K-1 (565) and Schedule K-1 (568).

    • Estimated tax penalty relief for farmers and fishermen
      March 7, 2022 Tax News Flash

      We are aware that farmers and fishermen, as defined in Internal Revenue Code section 6654(i)(2)(A) for purposes of estimated taxes, according to IR-2022-49 have had issues with filing their 2021 tax returns and paying the tax by the March 1, 2022, due date for those taxpayers who did not make an estimated tax payment by January 18, 2022. As a result of these issues, the Franchise Tax Board will waive the underpayment of estimated tax penalty if qualifying farmers and fishermen file and pay their 2021 taxes by April 18, 2022.

    • Entity ID number to use for electronic payment methods
      March 3, 2022 Tax News Flash

      There are two separate Franchise Tax Board electronic payment methods. The electronic payment method an entity chooses will determine which Entity ID number should be used. Using the proper Entity ID number, helps us ensure payments are posted properly to the correct entity.

    • Revision to 2021 form 3893, pass-through entity elective tax payment voucher
      February 25, 2022 Tax News Flash

      Due to California SB 113, we are revising tax forms, schedules, a publication, and booklets.

    • Real-time identify and proofing enrollment now available
      February 07, 2022 Tax News Flash

      We have completed the Real-time Identify and Proofing Enrollment process to expedite access to MyFTB accounts. You can now register for MyFTB without waiting for a Personal Identification Number (PIN) letter sent by mail.

    • FTB notice 763B -- FTB assigned identification number
      January 03, 2022 Tax News Flash

      Due to a system update to accommodate AB 85, entities without a Secretary of State ID on file with the Franchise Tax Board (FTB), (even if they had an EIN on file), were issued a temporary FTB ID number.

    2021