Tax News
October 2007

The top 10 business entity errors that delay return and payment processing

Ten ways for business entities to avoid hearing from us by making sure we're able to quickly and easily process their returns or payments. / more+

Top 250 tax delinquents receive FTB letter

A new program goes into effect this month, the result of Assembly Bill 1418 (Horton). This legislation directs us to publicly disclose a list of the top 250 state income tax debtors owing more than $100,000 in tax. Check our Website in early October for the list. / more+

Foreclosures and the next wave: taxes due on canceled debt

The mortgage default and foreclosure disaster has swept up many American homeowners. Adding to their woes is the fact that they are likely to be subject to tax on the defaulted loan amount, at the ordinary tax rate. / more+

Deferring gain on qualified small business stock via partnership

If a taxpayer wants to defer recognition of gain from the sale of qualified small business stock, what requirements must be met? May the taxpayer use a partnership to purchase replacement stock, other than the one selling the stock? Or, use a partnership to acquire replacement stock on his individual behalf? The answers may hinge on whether the date in question is August 13, or August 14, 2007. / more+

Results from California's compliance resolution program for 409A taxes

Forty-six employers participated in the California Compliance Resolution Program, based on the IRS program. The employers agreed to pay employees' taxes, incurred last year through the exercise of discounted stock options and stock appreciation rights. Find out how much these 46 employers have paid in taxes on their employees' behalf. / more+

Costly tax shelter penalties imposed after October 1

The window of opportunity has closed to file disclosure statements for listed and reportable transactions. Taxpayers who did not meet the October 1 deadline may find themselves receiving a notice for failure to provide the required disclosure statements. Penalties are steep:

  • $15,000 for failing to provide disclosure statements for each reportable transaction.
  • $30,000 for failing to provide disclosure statements for each listed transaction. / more+

Announcing the 2007 state income tax brackets

The new state income tax brackets are based on the inflation rate of 3.1 percent - and the new brackets may reduce the amount some California taxpayers will pay in personal income taxes next year. / more+

Notes from the Tax Practitioner Stakeholder Specialist

  • Selection process for private collections agencies begins. / more+

Inside FTB

  • Polishing our image (process).
  • FTB Website gets a new look in October. / more+

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

We are expanding the scope of our coverage for this feature, and appreciate your patience as we finalize the details. / more+