Tax News
January 2007

2006/2007 Tax forms available on our Website

Not only are our 2006/2007 forms now available online - you can fill in and save your information on our top 10 most popular forms. / more+

Registered domestic partners Web page

Check our Web page for the proceedings of the Interested Parties meeting held on November 30, 2006, and for ongoing information and news related to the new registered domestic partners law. / more+

The return of ReadyReturn

Our three-member board unanimously approved reinstating the ReadyReturn program. Eligible taxpayers will be able to decide if they want to accept the tax return we compute, based on information provided by their employers, or compute their own returns. / more+

Installment agreement pilot made permanent

We are wrapping up a 16-month pilot project that studied expanding the criteria for qualifying for a personal income tax installment agreement. During the pilot period, the maximum case balance was increased from $10,000 to $25,000, and the payoff period was expanded from 36 to 60 months, for qualifying applicants. The expanded criteria become permanent in 2007. / more+

Nonfiler notices mailed in December

We began mailing 700,000 notices to nonfilers in December, and will continue to mail them through May 2006. You can check our list of mail dates and projected volumes, and find out how you can automatically receive a copy if your client receives a notice from us. You may also want to check out the new income information sources we've added to the program. / more+

Don't forget: Report use tax on California income tax returns

As you begin preparing for the imminent tax filing season, just a reminder that it's quick and easy to report use tax on your clients' California tax returns. / more+

Auditing head of household filing status: Lessons learned

Rules for claiming head of household filing status changed significantly in tax year 2005, and led to some taxpayers receiving erroneous notices in 2006 (see November 2006, "Some head of household e-filers receive erroneous NPAs"). Here's what we learned, that may also help you with your HOH filing status clients. / more+

An inside look at FTB's audit programs

We invited our Advisory Board to attend an information meeting, to give them an in-depth view of our audit programs and some of the projects and initiatives currently underway. Take advantage of this comprehensive review of our audit programs. /more+

Avoid these common mistakes and help shrink the tax gap

By far, the largest percentage of California's $6.5 billion tax gap is underreporting, by individual and corporate taxpayers. Minimizing unintentional mistakes, and increasing voluntary compliance can make a significant dent in the tax gap. / more+

Inside FTB

  • Board approves FTB Tax Gap Strategic Plan
  • IRS Commissioner presents FTB with prestigious award
  • Tax News survey results / more+

This new Tax News section combines news about FTB and its people in one location. This month, we report on our new Tax Gap Strategic Plan, receiving the IRS Commissioner's award, and the results of a Tax News survey that many of you participated in.

Criminal Corner

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

The buzz on big business

Water's-edge and non-effectively connected income

If you have water's-edge clients with non-effectively connected income, make sure you read this article. If your clients don't fit this description, find out what we're talking about! / more+