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Tax News
Notes from the Tax Practitioner Stakeholder Specialist

Disclosure reporting requirements

FTB issued Notice 2007-4 on October 18, 2007, to provide an additional 45 days from the October 1, 2007 due date for taxpayers to file complete IRS Forms 8886, disclosing their participation in reportable transactions.

We extended the due date because of some confusion over whether or not taxpayers were required to file Form 8886 with respect to certain categories of reportable transactions - in particular, the Transactions with Contractual Protection category of reportable transactions. To help dispel any confusion, and insure that taxpayers are able to file the proper disclosures, we are extending the original filing deadline to November 15, 2007.

If you have questions about your clients' filing requirements, or if you need additional information, please see Notice 2007-4 posted on our Website.

Legislative update

The Governor has made decisions on several key tax bills recently:

Signed by the Governor

SB 105: Taxation of Registered Domestic Partners: Among other things, this bill makes technical changes regarding how RDPs calculate joint federal AGI for state tax purposes to be consistent with the calculation of joint federal AGI for married persons.

AB 198: Limited Liability Companies: Apportionment: Provides for recomputation of the tax, should the original be found invalid or discriminatory.

Vetoed by the Governor

AB 1618: This was an interest offset bill, which would have repealed a section of the Corporate Tax Law held unconstitutional by the US Supreme Court.