Tax News
August 2008

Deadline approaches for FTB Notice 2008-4 Closing Agreement

Eligible taxpayers must file Closing Agreements by September 12

Don’t miss the deadline to participate in FTB’s resolution of Bogus Optional Basis (BOB) Transactions and Certain Employee Stock Ownership Plan (ESOP) transactions. To participate, your clients must submit a complete, signed FTB 2008-4 Closing Agreement, with all other information required under the Notice, and pay the tax, interest and penalty by September 12, 2008. / more+

FTB is developing a California Schedule M-3

We are developing a Schedule M-3 (Reconciliation of Net Income (Loss) per Books With Income per Return) and want your input. We are in the process of designing this form, and will be placing draft versions on our website for public review and comment. We will hold an Interested Parties Meeting in Sacramento on August 11. If you're an interested party, sign up soon. / more+

One of FTB's tax gap strategies - nonresident withholding audits

One of our initiatives for closing California's tax gap is auditing compliance with withholding requirements for nonresident contractors. Read about our findings, and how they can affect your clients. / more+

Changes to state law on CTEC exemption

Any person who, for a fee, prepares or assists with preparing a Federal or State tax return, or signs the tax return, must register with the California Tax Education Council. Those persons must also meet continuing education requirements. CPAs, EAs, and attorneys are exempt from the CTEC registration requirement, as are employees working under a CPA, EA or attorney. However, recent legislation has changed language covering exemption. / more+

FTB follows IRS increased mileage rates for rest of 2008

The recent spike in gasoline prices has been a deciding factor in the mid-year increase in mileage rates recently implemented by the IRS. FTB follows the IRS increase in the optional standard mileage rate, which is in effect from July 1, 2008, to December 31, 2008. / more+

IRS launches campaign to help new small businesses

New, self-employed small business owners can get valuable guidance and educational materials from the IRS campaign to help new small businesses. New filers of Schedule C, Profit or Loss from Business at the IRS' are offered improved and updated educational materials through a variety of channels, including IRS.gov, small business workshops, and other outreach events. / more+

What else is new with exempt organizations?

Legislation took effect January 1, 2008, that simplifies obtaining state tax-exempt status. A key element of the new process is FTB Form 3500A. We recently renamed Form 3500A, so make sure you know what to look for when you begin the process to get state-tax exempt status for your clients. / more+

Inside FTB

  • Thousands eligible for Homeowner and Renter Assistance
  • Incorrect phone number on back of 2008 HRA booklet
  • Correction to June 2008 Tax News / more+

Criminal Corner

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