Tax News August 2020

August 2020

• State’s Top 500 Tax Delinquencies Total $151 Million

  View the latest Top 500 Delinquent Taxpayers list¹⁶, which includes individuals and businesses that collectively owe the state more than $151 million in state income tax.

• Mandatory e-Payment requirements have now been in place for 10 years

  Once taxpayers meet the mandatory e-Pay requirement, they must make all payments electronically or they will be assessed a penalty of 1% of the amount paid. Under certain circumstances, a taxpayer may be granted a waiver of the mandatory e-Pay requirement.

• Business Expenses publication (FTB 984) coming soon

  Business Expenses (FTB 984) has recently been revised.

• Reminder: We are taking appointments at our field offices

  Our public counters provide tax filing and payment assistance to customers and their authorized representatives concerning personal income tax, business entity income tax, and non-tax debts.

• California Competes Tax Credit – Application period began July 27, 2020

  For Fiscal Year 2020/2021, the California Competes Tax Credit (CCTC) first application period is available.

• Delinquency Control program will reduce the amount of notices sent to business entities

  Starting September 2020, the Delinquency Control program is changing.

• Property managers and California withholding

  Property managers are required to withhold 7% of the gross rent or lease payments in excess of $1,500 per calendar year, and remit those payments to us if they both:

  • Manage real property
  • Collect rent or lease payments for California property owners that reside outside of California (nonresident owner)

• Offsets, what are they and have they resumed?

  We frequently get asked questions about our offset programs, so we want to explain how we offset tax refunds and the COVID 19 pandemic relief we provided.

• California State Board of Equalization holds its Annual Taxpayers’ Bill of Rights Hearing August 18, 2020

  The California State Board of Equalization will hold its annual Taxpayers’ Bill of Rights Hearing on August 18, 2020.

• IRS subscription services

  In our May 2020 Tax News, we let you know about several useful IRS resources during COVID-19. One of the resources we mentioned was the IRS’ e-News-subscription service. This month, we want to go into more detail about some of the content that is available to you from the IRS direct to your in-box.

• Ask the Advocate

  New guidelines and contact information for Advocate Assistance

• Chief Counsel Corner

  1031 transactions: The importance of determining which party conducted the sale

• Event Calendar

  As part of education and outreach to our tax professional community, we participate in many different presentations and fairs. We provide a calendar that shows the events we attend (virtually), as well as other events happening with us, such as interested party and board meetings.

Have a topic or tax question you’d like us to address? We want to hear from you! Submit your ideas to us: taxnews@ftb.ca.gov