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State of California Franchise Tax Board

What requirements do I have to report municipal bond interest paid by state other than California?

Entities paying more than $10.00 of interest or interest-dividends that were earned on federal tax exempt bonds issued by a state or local government other than California are required to provide an information return to the Franchise Tax Board. This requirement is defined under California Revenue and Taxation Code Section 18639 and applies to individuals and partnerships with a California address.

If you have 250 or more accounts, you must provide the information to the Franchise Tax Board electronically or on disk. If you have less than 250 accounts, you must report the information electronically, on disk, or in paper form.

If you have questions on reporting requirements for tax-exempt bond interest, call the Franchise Tax Board at 800.852.5711.

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