Tax News
June 2007

The amnesty penalty and protective claims

Several court cases are challenging the current law that computation errors are the only grounds for filing refund claims. Under certain circumstances, however, the taxpayer may protect the statute of limitations on a claim by filing a request with us to withhold any action on the claim. / more+

HOH and RAR workshops available starting in July

We will begin offering Head of Household (HOH), and Revenue Agent Reports (RAR) workshops starting July 2007. Tax professionals will receive in-depth review, and updated information about the HOH and RAR audit programs from these workshops. / more+

Notify FTB after a federal tax adjustment

You can use this valuable information on notification responsibilities to FTB if the IRS examines your client's federal return and makes adjustments. / more+

Proper reporting of S corporation indebtedness

The single taxation provision afforded to S corporations and their shareholders is one of the benefits of owning S corporation stock. Making sure your clients properly report S corporation indebtedness will help them avoid unnecessary income tax examinations. / more+

FEMA adds counties to January freeze disaster declaration

Kings, Madera, Merced, and Stanislaus counties have been added to the Major Disaster Declaration the President approved in March, following the January freeze. / more+

Notes from the Tax Practitioner Liaison

  • Excess SDI may need special entry for e-file
  • Some fiduciary returns may be reporting income in error
  • Single member LLC required forms / more+

Inside FTB

  • New subscription services coming in June / more+

Criminal Corner

Our monthly summary on bringing tax criminals to justice, and closing the tax gap one case at a time. / more+

The buzz on big business

  • The California Research Credit - what is sufficient documentation? / more+