Tax News
May 2008

LLC fee refunds based on Northwest decision

California Court of Appeal, First Appellate District, recently rendered a decision in Northwest Energetic Services (NES), LLC v. Franchise Tax. The decision means it is now possible to take action on claims for refund filed by LLCs that had no income attributable to activities in California. Make sure your clients provide enough information so that we can determine whether the LLC that filed the claim has the same facts as those involved in NES. / more+

FTB follows IRS Notice 2007-100

Service recipients or service providers that rely on IRS Notice 2007-100 for federal income tax relief must follow the Notice's information and reporting requirements, and must attach statements to their respective federal income tax returns. FTB conforms to IRC 409A, and is following IRS Notice 2007-100. Find out the California requirements regarding conformity to the IRS Notice. / more+

Updated list of top 250 income tax debts

Who is in the dubious position of holding the largest income tax debt in California, and how big is it? This person or corporation is at the apex of the top 250 largest income tax debts in California. / more+

FTB requests tax returns on real estate withholding cases

Approximately 9,000 Requests for Tax Returns were mailed to nonfilers with real estate withholding credits for 2004 and 2005. To claim the credit, sellers must file a California tax return – and may owe penalties and interest if they wait too long. / more+

Top 10 real estate withholding errors

While we’re talking about real estate withholding, here’s what you need to do to avoid common errors, and the accompanying delays in document and payment processing. / more+

Reporting tax fraud, closing the tax gap

Most taxpayers are honest, but through higher taxes, they pay for the dishonest ones out there. With your help, we’re trying to bring dishonest taxpayers or tax practitioners into alignment with the rest of us. / more+

Combined report, water’s-edge e-filing coming in June

When the business entity e-filing program was introduced in January 2006, it was limited to Form 100, California Corporation Franchise or Income Tax Return. In January 2007, we added Form 565, Partnership Return of Income, Form 568, Limited Liability Company Return of Income, and Form 100S, California S Corporation Franchise or Income Tax Return. In June of this year, we’ll expand the list to include the largest and most complex business returns: combined reporting, and Form 100W, California Corporation Franchise or Income Tax Return - Water's-Edge Filers. / more+

Alternative ways to pay

The next 2008 estimated tax payment is due June 16. We offer your clients an array of payment options, from online transactions like Web Pay and electronic funds withdrawal, to credit cards and installment agreements. / more+

Inside FTB

  • Error on state tax form for IRA income phase out amount / more+

Criminal Corner

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