Tax News
 September 2008

Using offshore entities and financial arrangements to evade taxes

There are legitimate reasons for creating business entities and offshore financial arrangements. For instance, U.S. businesses can only operate in certain foreign countries if they create a corporation in those countries. All too often, however, we find that offshore entities and financial arrangements are set up for unlawful reasons. / more+

California's NEST penalty

California's noneconomic substance transaction understatement (NEST) penalty can be substantial - 40 percent for noneconomic substance transactions that are not adequately disclosed. There is a process, however, for determining whether the NEST penalty should be reduced or withdrawn. / more+

FTB acts quickly on feedback from stakeholders

Comments and advice we recently received from our stakeholders resulted in quick changes to our Practitioner Hotline service, and our proposal to develop a California Schedule M-3. / more+

New adjusted interest rate

The adjusted interest rate, and rate for corporation tax overpayments are currently 7 percent, and 3 percent, respectively. Both will drop on January 1, 2009. / more+

2008 Federal and state e-services workshops

Don’t miss out on our annual, free e-services workshops! Get the latest information on our e-programs and services, and earn CPE credits. Don’t delay - they’re starting soon (September 3) in a city near you! / more+

California Tax Policy Conference coming in November

Join your colleagues in beautiful San Francisco November 6-8 for the 2008 Annual Meeting of the California Tax Bar and California Tax Policy Conference. This year’s conference features 12 state and local tax programs, covers a variety of timely topics, and gives you the opportunity to earn up to 14.5 education credits. / more+

Electronic payment options and advantages

Your clients can take advantage of several payment alternatives for paying their September 15 quarterly estimate payments. In addition to making their estimate payments using Web Pay and credit cards, they can also use these methods to pay other FTB liabilities (balance due on their tax returns, prior year balances, and more).  And, don’t forget we accept installment agreement applications for balances up to $25,000, and for payment periods up to 60 months. / more+

Inside FTB

  • State tax relief for California wildfire victims
  • Tax information for same-sex married couples
  • New online service for lien payoff demand requests / more+

Criminal Corner

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