Tax News
July 2008

Theft loss deduction

If any of your clients have been victims of embezzlement schemes, here’s a quick, useful recap of the rules relating to the theft loss deduction, insurance compensation, recovery of the loss, and more. / more+

FTB Notice 2008-4 offers substantial penalty relief

FTB Notice 2008-4 gives eligible taxpayers a window of opportunity from June 23, 2008, until September 12, 2008, to enter into a closing agreement to resolve certain transactions that may be subject to the non-economic substance transaction (NEST) penalty R&TC §19774. / more+

What’s new with exempt organizations?

Assembly Bill 897 took effect January 1, 2008, streamlining the process for obtaining exempt status in California. AB 897 makes it possible for organizations to request state exemption by sending FTB a copy of the federal exempt status determination letter from the Internal Revenue Service (IRC Section 501(c)(3)). / more+

Corporations to receive letters in August on RARs

Revenue Agent Report notification requirements, and the steps necessary to meet them

You have probably had clients who were part of an FTB “RAR” audit – when taxpayers are audited by the IRS, they are required to notify FTB. This requirement extends to corporations, as well as individual taxpayers. This month, FTB will begin sending letters to certain corporations to remind them of their obligation to report all federal changes to FTB. / more+

Head of household audit questionnaires coming in July

It’s that time again – we’re sending out about 130,000 HOH questionnaires beginning in July. Let your clients know that they have several ways they can respond to the questionnaire, and that they need to respond on or before the due date to avoid a failure to furnish information penalty. / more+

Inside FTB

  • FTB Annual Report 2006
  • CTEC – a great resource for tax preparers / more+

Criminal Corner

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