Tax News
November 2007

Tax relief for Southern California fire victims

California will match the postponement periods announced by the IRS, for taxpayers affected by the wildfires in any of the state's federally declared disaster areas. / more+

Like-kind exchange of TIC interest

We have identified a trend that is resulting in audit adjustments, relating to deferring gains on transactions under IRC Section 1031 - find out if any of your clients are likely to hear from us. / more+

Calculating the Limited Liability Company fee after AB 198

The Governor signed Assembly Bill 198 on October 11. It took effect immediately, changing the fee calculation for all Limited Liability Companies (LLCs) doing business within and outside of the state for taxable years beginning on or after January 1, 2007. / more+

EZ does it - Enterprise zone tax incentive program is changing

Many of the Enterprise Zones that were created in the mid-80s have either expired in 2006 or will be expiring in 2007, and the program is undergoing some changes. / more+

FTB follows IRS Chief Counsel Advice for IRC Section 409A

On July 13, 2007, the IRS released Chief Counsel Advice (CCA) 200728042, which relates to applying IRC Section 409A to certain backdated stock options. California conforms to IRC Section 409A, and is following CCA 200728042. In their original submissions, employers may have included certain employees who should have been excluded - and they may be due a refund for amounts submitted to FTB on behalf of employees not subject to Section 409A. / more+

Back dated stock options

California's self-compliance program for employers regarding IRC Section 162 (m)

We are conducting a self-compliance program for employers who may have issued discounted stock options and/or stock appreciation rights (stock rights) to their employees. If this describes any of your clients, they may receive a self-compliance letter from us. / more+

Nonresident withholding at source

Requesting reduced withholding

Current law requires a withholding agent to withhold seven percent on the gross California source payment. In some circumstances, this may result in over withholding for the tax year. Beginning January 2008, we are changing the way we process requests for reduced withholding - to increase compliance, and reduce the possibility of future over-withholding. / more+

SA/IRS Reporter

The Social Security Administration (SSA) and the IRS collaborate on a quarterly newsletter that offers general information about payroll and employment tax best practices, SSA products and services, as well as timely information from the Department of Labor, Department of Justice, Health and Human Services, and other government agencies. Find out more about what's available from this newsletter, and how to subscribe to this useful information resource. / more+

IRS phone forum for unenrolled tax practitioners

Save the date - on November 27, the IRS is presenting a phone forum on unenrolled tax practitioners, and responsibilities with the IRS, FTB, and CTEC. Dial in for an abundance of information, and earn CPE credit at the same time. / more+

Notes from the Tax Practitioner Stakeholder Specialist

  • Disclosure reporting requirements
  • Legislative update / more+

Inside FTB

  • Steps we're taking to help the SoCal fire victims
  • "My FTB Account" coming in January / 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

Enterprise zone hiring credit update – Appeal of Jessica McClintock / more+