Tax News April 2025

Tax News Flash – Corrected Form 1099-G Mailed

March 20, 2025 – Corrected Form 1099-G Mailed

Shane Hofeling Appointed Chief Counsel

We are excited to share that Shane Hofeling was appointed Chief Legal Counsel effective March 17, 2025. Shane started his public service career with the Franchise Tax Board (FTB) over 22 years ago when he joined the Legal Division as a staff attorney. During this time, he has had the opportunity to work in five of the eight bureaus in the Legal Division and served as subject matter expert in all aspects of individual income tax and corporate franchise and income tax law. Shane also served as the Assistant Chief Counsel of the Litigation Bureau where he oversaw the department's litigation management and strategy for over four years. Most recently, Shane served as the Deputy Chief Counsel with primary oversight of the Technical Resources Bureau for the last six years, where he oversaw the department’s regulatory and legal guidance programs and served as the attorney for the three-member Franchise Tax Board. Prior to joining FTB, Shane practiced privately in the areas of estate and tax planning.

Shane received his Juris Doctorate from the University of the Pacific and McGeorge School of Law in 2002, with a Tax Certification. He earned a Master of Accounting and a Bachelor of Science in Accounting from the University of Utah, and is also a graduate of California State University, Sacramento Leadership for Government Executives.

FTB and the taxpayers of California have benefitted greatly from his service and many contributions. With this appointment we will continue to improve from his experience and knowledge. We appreciate all Shane has done and look forward to many more successful years with his guidance.

Be Vigilant this Tax Season – Recognize Tax Scams and Fraud

Beware of text message and other Scams this tax season. Scammers may pretend to be government officials, or even law enforcement, in an effort to get you or your client to send them money or access personal account information.

The main types of scams operate through email, regular mail, phone, text messages, and fraudulent websites.

If you, or your client, receive a suspicious or unsolicited text message claiming to be from FTB, do not respond or click on any links, as the text may be a phishing scam.

A phishing text may ask for usernames, passwords, payment, credit and debit card numbers, bank information, personal identification numbers, or Social Security number.

FTB does not send text messages asking for personal or financial information. Go to our Text messaging webpage to verify when we may send a text message. We also published a press release March 20, 2025, to warn about Tax Scams Targeting Californians this Filing Season.

Check out the IRS links that may be useful.

• Dirty Dozen tax scams for 2025
• Recognize tax scams and fraud
• If you were scammed
• Identity theft central

New Business Entity Self-Service

We continue to do our best to provide additional new self-services and enhancements for the tax practitioner community and small business owners. We are excited to share another new self-service to make your life easier without having to call us:

Business Entity Payment Plans

This new service launched, in a limited capacity, on March 17, 2025, to allow business entities (BE) to request a payment plan online, log into their MyFTB account. It should be fully available to all entities by the end of the year.

When requesting a payment plan, the BE representative can: calculate a payment amount and view the terms of the payment plan, provide financial institution information, as well as verify/confirm the payment plan.

Payment Options

We offer a variety of payment options including direct pay from your back account using our free Web Pay service, online credit card payments (subject to fees), and payment plans for eligible taxpayers (subject to fees).

Taxpayers should be aware of third-party online bill payment companies that offer other ways for taxpayers to make online bill payments. Some of these companies may charge excessive fees and may not ensure timely payments. Some also have websites designed to suggest that they are affiliated with FTB, when they are not.

All of FTB's payment options are described on our payment options webpage. Your FTB account balance is subject to accrue interest and applicable penalties until paid in full.

Check out our new FTB Web Pay Video for further guidance.

Wait Time and Refunds

To assist tax practitioners and taxpayers, we compiled useful links you can refer to during the tax filing season. These links can help you determine the best time to call, check refund status, and FTB business areas to contact directly.

• Wait times
• Where’s my refund
• Help with refunds
• FTB 1240 California Franchise Tax Board Information Directory

Adjusted Interest Rates

For the period July 1, 2025, through December 31, 2025, the interest rate will be 7%. This is the rate compounded daily that accrues with respect to various state taxes, to include:

• Personal income
• Corporate income
• Franchise income

The rate for corporation tax overpayments for the same period is 4%.

For more information, go to Interest and estimate penalty rates.

Internal Revenue Service Updates

We partnered with the IRS to provide monthly IRS articles to assist our tax professional and small business communities. We are excited to share this information; however, questions about the content, should be directed to the IRS.

IRS reminds retirees: April 1 final day to begin required withdrawals from IRAs and 401(k)s

IR-2025-33, March 13, 2025 — The IRS issued a reminder that in most cases retirees who turned 73 in 2024 must begin receiving payments from Individual Retirement Arrangements (IRAs), 401(k)s and similar workplace retirement plans by Tuesday, April 1, 2025.

Tax Time Guide: Use IRS electronic payment options for fast, safe service; avoid penalties and interest

IR-2025-32, March 12, 2025 ― The IRS encouraged taxpayers to file a tax return or pay taxes they owe using electronic options on IRS.gov by April 15.

Taxpayers should act now to claim more than $1 billion in refunds for tax year 2021 with the April 15 deadline fast approaching

IR-2025-31, March 11, 2025 — The IRS announced that over 1.1 million people across the nation have unclaimed refunds for tax year 2021 but face an April 15 deadline to submit their tax returns.

IRS: Don’t overlook free options for preparing and filing taxes in 2025; Direct File available in 25 states

IR-2025-30, March 10, 2025 — The IRS encouraged taxpayers who have yet to prepare and file their tax returns to consider taking advantage of the many free options available – including Direct File, a free, fast and easy way to file directly with the IRS, now available in 25 states.

Interest rates remain the same for the second quarter of 2025

IR-2025-29, March 6, 2025 — The IRS announced interest rates will remain the same for the calendar quarter beginning April 1, 2025.

Ask the Advocate - Seasons of Change - Well Wishes, Blake! Welcome Back, Victoria!

Spring, with its blooming flowers, warmer weather, and longer days, is often associated with new beginnings and fresh starts. I embrace and welcome the diversity of change and look forward to fresh, new beginnings. One of those changes we experience is the staff that come and go in the Taxpayers’ Rights Advocate’s Office. While it’s inevitable, I love that staff can thrive, blossom, and flourish with their unique skillsets. FTB supports professional growth and rotational opportunities.

Just a few months ago, I introduced Blake Cunningham as my new Technical Advisor. However, Blake recently returned to his roots in FTB’s Legal Division. While we are sad to see him leave our team, we are happy FTB provides this rotational opportunity for Blake. During his short time with us, he was an integral part of our team. His strong technical expertise, dedication, and positive attitude made a lasting impact, and he will be greatly missed.

As we embrace this season of change and renewal, we are delighted to welcome back a familiar face to our team. After a brief time in FTB’s Legislative Services Bureau (LSB), Victoria Ramirez returns as my new Technical Advisor. Just as the seasons shift, bringing fresh energy and new beginnings, Victoria returns to us with renewed experience, insights, and enthusiasm.

Victoria also brings a wealth of knowledge, she obtained a Master of Science in Taxation from Golden Gate University, and a Bachelor of Accountancy and Spanish from Sacramento State University before acquiring her Certified Public Accountant license. She previously worked as a tax manager for a public accounting firm before joining FTB in 2018. This experience provided her a unique perspective on how FTB and the tax practitioner community collaborate to solve tax matters. She also gained experience in FTB’s Public Affairs Office, Audit, and most recently as a manager in LSB, where she oversaw the implementation of newly enacted legislative bills and costing.

Change brings growth, and I couldn’t be more excited about this new chapter for both Blake and Victoria as we move forward embracing fresh opportunities to build on our shared successes. FTB is fortunate to have such talented and dedicated employees as Blake and Victoria serving California taxpayers and tax professionals.