Tax News December 2020

Current edition

• Main Street Small Business Tax Credit – Get your reservation now!¹⁵

  The time to get your reservation for the new Main Street Small Business Hiring Tax Credit has begun!

• New Forms for 2020 to Report Minimum Essential Coverage and Premium Assistance Subsidies¹⁶

  Individuals will start reporting minimum essential coverage, also known as qualifying health coverage, on their 2020 tax returns.

• FTB initiated Administrative Dissolution process to begin in January 2021¹⁷

  The start date for the FTB initiated administrative dissolution program was delayed due to COVID-19, but will now begin in January 2021.

• FTB hosts virtual stakeholder meetings¹⁸

  Recently, we hosted 2 stakeholder meetings to gain input from the public.

• Covid-19 relief for undocumented workers in California - is it taxable?¹⁹

  While the economic impact payments issued by the Internal Revenue Service provided relief for millions of taxpayers across the country, not all taxpayers qualified to receive these payments.

• Power of Attorney (POA) – Best Practices²⁰

  When CalCPA posed a question about POAs at the October CalCPA Liaison meeting, we took the opportunity to share our POA best practices, which we summarize below.

• Power of Attorney (POA) for pass-through entities²¹

  We received this question from our preparer community.

• Update on the new Head of Household process²²

  Back in January we began the new process of verifying Head of Household (HOH) filing status when incoming returns are processed using the information provided on FTB Form 3532.

• Discontinued: Business Entity Estimate Payment Notification - FTB 3713 ²³

  We will no longer mail to business entities:

  • Summary of Account Payments
  • Transfers
  • Credits
• Using Web Pay is safe and simple, but remember to verify payment²⁴

  Using Web Pay is a safe and simple way to avoid problems and the extra work that comes when someone mails a payment to us and that payment isn’t timely credited to their account.

• California State Controller (SCO) outreach events²⁵

  Unclaimed Property Division’s Outreach and Compliance team is reaching out to educate business owners about the unclaimed property laws and reporting requirements for holders of unclaimed property.

• Tax Appeals Assistance Program - announcing a new Supervising Attorney²⁶

  In our January 2019 Tax News, we announced that the Tax Appeals Assistance Program (TAAP) for franchise and income tax would be administered by the Taxpayers’ Rights Advocate’s Office (TRAO) at the FTB.

• Chief Counsel Corner²⁷

  Carried interest

• MyFTB Corner²⁸

  Renew your taxpayer information authorization (TIA) clients early

• All About Business²⁹

  Assembly Bill 85 law changes for LLCs, LLPs, and LPs and the 15-day rule

• Event Calendar³⁰

  As part of education and outreach to our tax professional community, we participate in many different presentations and fairs. We provide a calendar³⁰ 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.gov³¹