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Page 7

PROPOSED BILLS

Continued from page 6

AB 1122 (Assembly Committee on Revenue and Taxation)
As introduced February 23, 2001

This FTB sponsored bill would make the following changes to the Revenue and Taxation Code:

. Conform to federal provisions that permit electronic postmarks to be proof of the date e-file returns are deemed filed.
. Rename the Bank and Corporation Tax Law as the Corporation Tax Law and for consistency rename the Bank and Corporation Tax Fund as the Corporation Tax Fund. These changes are consistent with those changes made by AB 1040 (Stats. 1997, Ch. 605) that revised the definition of corporation to include banks.

AB 1320 (Rod Pacheco)
As introduced February 23, 2001

This FTB sponsored bill would provide that the 25 percent penalty for notice and demand would be based on the tax required to be shown on the return reduced by the amount of timely payments and by the amount of any tax credits claimed upon the return. Thus, this bill would eliminate the penalty if the taxpayer had properly filed a tax return and would have been owed a refund.

SB 324 (Ackerman)
As introduced February 20, 2001

This FTB sponsored bill would amend the Corporations Code to allow the Secretary of State to file  an agreement of merger of two or more corporations without receipt of the Certificate of Satisfaction from the FTB if the surviving corporation is a domestic corporation or foreign corporation qualified to do business in this state.

Thus, this bill would reduce the complexity of merger transactions and would eliminate delays.

SB 657 (Scott)
As introduced February 23, 2001

This FTB sponsored bill would grant FTB, in its discretion, the authority to perfect water's-edge elections. In addition, for taxable years beginning on or after January 1, 2001, this bill would eliminate the election by contract. Instead, the election would be made on a timely-filed original return and would be considered valid if both of the following conditions are met:

. The return tax is computed on the water's-edge basis; and
. Written notification of the election is filed as prescribed by FTB.

FTB would be permitted to consider other objective evidence that a water's-edge election was intended. The bill also would specify those conditions in which a taxpayer would be deemed to have made an election. A taxpayer that is engaged in more than one apportioning business would be permitted to make a separate election for each apportioning trade or business. The election would be for a period of 84 months. The election may be terminated prior to the end of the 84-month period for good cause, upon consent of the FTB.

SB 906 (Bowen)
As introduced February 23, 2001

This FTB sponsored bill would allow a taxpayer to file a claim for refund before the tax is fully paid, and thereby toll the refund statute of limitations.

This bill generally would apply to claims for refund filed on or after January 1, 2002, without regard to taxable year. Installment payments could only be refunded to the taxpayer if a claim for refund is filed within one year of the date of the installment payment. 

Thus, installment payments made before January 1, 2001, would not be subject to a refund under this bill.

SB 1185 (Senate Committee on Revenue and Taxation)
As introduced February 28, 2001

This FTB sponsored bill would make the following changes to the Revenue and Taxation Code:

. Clarify the vouchering requirements by amending the definition of qualified employee in the enterprise zone, local agency military base recovery areas, and targeted tax area hiring credits with express references to the Jobs Training Partnership Act (JTPA) definitions as they existed on and before June 30, 2000.
. Conform to provisions of federal law that permit electronic postmarks to be proof of the date e-file returns are deemed filed.
. Rename the Bank and Corporation Tax Law as the Corporation Tax Law and for consistency rename the Bank and Corporation Tax Fund as the Corporation Tax Fund. These changes are consistent with those changes made by AB 1040 (Stats. 1997, Ch. 605) that revised the definition of corporation to include banks.

SB 1186 (Senate Committee on Revenue and Taxation)
As introduced February 28, 2001

This FTB sponsored bill would amend 12 code sections in the Revenue and Taxation Code by replacing the obsolete term income year with the term taxable year.

This bill also would replace the obsolete term Job Training Partnership Act with the term Workforce Investment Act of 1998 so that state law references current federal law.

May/June 2001

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