March 2019 Tax News

Tax News is designed to inform tax professionals about state income tax laws; our regulations, policies, and procedures; and events that affect the tax professional community.

• Cannabis Business Resources

  Income tax resources for newly licensed business.

• Filing California Claims for Refund under the Combat-Injured Veterans Tax Fairness Act of 2016

  The Combat-Injured Veterans Tax Fairness Act (CIVTFA) gives veterans who retired from the Armed Forces for medical reasons additional time to claim a federal tax refund if they had taxes improperly withheld from their severance pay.

• Have a Married Military Client?

  There has been a change in federal law that may affect your military clients’ tax filing position if they have a spouse who is earning income while in California.

• Where to send clients’ "state copy" of an Information Return?

  It is filing season and your clients may be asking you where to send the “state copy” of an information return, such as a W-2 for an employee and a 1099 to other payees.

• Tax deduction - Charitable contributions and others

  Federal tax reform approved in December 2017 changed many areas of federal income tax law.

• Interest rates increase

  The current rate on personal income tax underpayments and overpayments, corporation underpayments, and estimate penalties will increase to 6 percent through 2019.

• California Competes Tax Credit

  The California Competes Tax Credit (CCTC) is an income or franchise tax credit available to businesses that want to come to or stay and grow in California.

• IRS is looking for victims of “ghost tax preparers”

  IRS released a tax tip on choosing a tax preparer cautioning taxpayers to choose their tax preparer wisely and warns taxpayers to avoid certain unethical tax return preparers, known as ghost tax preparers.

• Ask the Advocate

  Top Power of Attorney and Tax Information Authorization rejections.

• MyFTB Corner

  Manage your Tax Information Authorization (TIA) clients in MyFTB – What you need to know.

• All About Business

  Schedule IW, Limited Liability Company (LLC) Income Worksheet.

• 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