Tax News
 November 2008

BOE sales and use tax audit can lead to income tax audit

The Board of Equalization (BOE) provides us with copies of sales and use tax audit reports for audits that result in adjustments of additional gross receipts (total sales). We review their reports to determine if an income tax adjustment is called for. If your client had changes made by the BOE, those changes may result in a change in California income tax liability for the corresponding tax years. If that is the case, your client should file an amended income tax return. / more+

New nonresident withholding incentive program for withholding agents

This new program will allow withholding agents, who have not previously withheld, to remit past-due, non-wage withholding for tax year 2008 until March 15, 2009. As an incentive, we will apply reasonable cause to waive certain penalties. Check our website after December 15 for news, forms, and detailed instructions on our new voluntary withholding incentive program. / more+

Withholding on California source income payments

We have new procedural information about nonresident withholding on payments of California source income. These procedures apply to those who pay either nonresident independent contractors, or other nonresidents who receive California source income.  Information on workshop registration, FTB withholding forms, revised FTB Publication 1017, and more, will soon be available on our website. / more+

Annual Taxpayers’ Bill of Rights Hearing

The annual Taxpayers' Bill of Rights Hearing is usually held during the last meeting of the Franchise Tax Board for the calendar year, which is expected to take place December 4, 2008. Plan ahead to either attend the meeting, or to send your comments for consideration during the meeting. / more+

A SWIFT conversion for information reporters

On January 1, 2009, information reporters that submit more than 250 Information Returns, and filed 2007 returns using our e-Information Return program, will be converted to our Secure Web Internet Filing Transfer (SWIFT) to submit files. / more+

Mandatory e-pay required for high-income individual taxpayers

Personal income taxpayers whose tax liability is greater than $80,000, or who make an estimated tax or extension payment that exceeds $20,000 for taxable years beginning on or after January 1, 2009, must send the payment electronically beginning January 1, 2009. / more+

New e-pay toolkit

Paying electronically saves time, and is good for the environment. We’re offering an online toolkit that allows you to download posters, pamphlets, and other products you can provide to clients, that highlight the benefits of paying electronically. / more+

Schedule HOH and RAR workshops

It’s not too late – you can still arrange for a two-hour workshop on Head of Household, RAR, or one of each. Just give us 20 days’ notice, and tell us your preferred date and time. / more+

2008 State income tax rates adjusted for inflation

The state is adjusting the tax brackets, filing requirement thresholds, standard deduction, and certain credits based on the inflation rate of 5 percent, as measured by the California Consumer Price Index for all urban consumers from June 2007 to June 2008. Last year's inflation rate measured 3.1 percent. / more+

HRA Program cut from 2008/2009 California state budget

The state budget approved for the 2008/2009 fiscal year deleted funding for the Homeowner and Renter Assistance Program (HRA). We cannot process 2008 claims, and reduced funding for existing HRA workloads means you will probably experience delays with phone calls, or HRA claims and correspondence for 2007 and prior years. / more+

California’s mortgage forgiveness debt relief law

California’s mortgage forgiveness debt relief law covers qualified debt forgiven in 2007 and 2008. Although it is similar to the federal law, make sure you’re aware of the differences between the two laws. / more+

Inside FTB

  • Improvements to My FTB Account
  • We want to hear from you about EASE / more+

Criminal Corner

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