Tax News January 2021

• Time’s running out for the Main Street Small Business Tax Credit

  The credit is for employers affected by the economic disturbances of 2020.

• New form: 1099-NEC, Nonemployee Compensation

  Beginning in tax year 2020, payers must complete the new Form 1099-NEC, Nonemployee Compensation

• Cannabis update from the Franchise Tax Board Cannabis Business Team

  We continue to focus our efforts on education and outreach.

• Delayed Form 1099-G

  There are certain circumstances where a timely filed tax return requires additional review and validation.

• January 2021 application period for California Competes Tax Credit

  For Fiscal Year 2020/2021, the remaining application periods are:

  • January 4, 2021 through January 25, 2021
  • March 8, 2021 through March 29, 2021
• January reminders: estimated tax payments, farmers and fishermen

  Fourth quarter estimated tax payments are due on January 15th, 2021, but there are special provisions for farmers and fishermen.

• Statute of Limitation waiver e-Signature option extended

  The e-Signatures option for Statute of Limitations (SOL) waivers that was set to expire on December 31, 2020, is now available through June 30, 2021.

• Power of Attorney still requires original signature

  We recently updated our COVID-19 FAQ page to reflect that for paper returns and other documents that must be signed with an original signature by a taxpayer and/or tax representative, we will not require an original signature through June 30, 2021, except for Powers of Attorney (POAs).

• New Form: Request for Appeal Before the Office of Tax Appeals

  We developed a new form, Request for Appeal Before the Office of Tax Appeals (FTB Form 1037), to assist taxpayers in filing appeals with the Office of Tax Appeals (OTA) from notices of action of FTB.

• 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.

• From State Controller’s Office: Businesses may hear from unclaimed property owners

  All businesses that have unclaimed property are required to send Notice Reports to the SCO annually before November 1 (before May 1 for life insurance companies).

• MyFTB Corner

  Update Contact Information feature misused

• All About Business

  Tax exempt organization application fee and filing fees eliminated

• Event Calendar

  As part of education and outreach to our tax professional community, we participate in many different presentations and fairs. We provide a calendar that shows the events we attend (virtually), as well as other events happening with us, such as interested party and board meetings.

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