CA FTB

SoCal Tax Help

January 7, 2010 | Mike Habib, EA

Southern California Tax Relief Services

IRS tax Relief, FTB tax Relief, BOE tax Relief, EDD tax relief

At Mike Habib, EA, a SoCal tax firm, we understand that being notified that your tax return is being challenged by the IRS or the FTB can be scary. When you are faced with an audit, or a collection action, by the IRS, or the FTB, you may not know where to turn or what to do. We have the skill set and representation expertise to deal with the IRS and the FTB on your behalf. We understand their rules and are experienced in negotiating the lowest possible tax debt settlement allowed by law.

CA FTB Corporate Back Taxes

September 15, 2009 | Mike Habib, EA

California – Corporate Income Tax: FTB Has Begun Contacting Return Nonfilers for 2007

The California Franchise Tax Board (FTB) has begun contacting more than 35,000 companies that did business in California in 2007, but failed to file a California corporation franchise or income tax return for that year. Businesses contacted by the FTB will have 30 days to file their delinquent tax return or show why one is not due. If no such action is taken, the FTB will issue a tax assessment that may include penalties and fees.

The FTB annually reviews more than 5 million income records from government agencies and financial institutions, and matches them against tax records filed to determine whether some businesses have yet to file. Businesses receiving notices from the FTB may obtain more information by calling the FTB at 866-204-7902. Callers should be prepared to provide their 15-digit notice number.

EDD and BOE Wildfire Tax Relief

September 2, 2009 | Mike Habib, EA

California – Multiple Taxes: Wildfire Relief Extended to Taxpayers in Three More Counties

For taxes and fees they each administer, the California State Board of Equalization (BOE) and the Employment Development Department (EDD) have extended relief to qualifying taxpayers and fee payers who have been affected by wildfires in the counties of Los Angeles, Monterey, and Placer. Both agencies have recently extended similar relief for those affected by wildfires in Santa Cruz and Yuba counties, as reported.

EDD Relief

FTB Cash for Clunkers Tax Rules

September 1, 2009 | Mike Habib, EA

Clarification of the “Cash for Clunkers” Tax Rules

September 2009 – The federal “Cash for Clunkers” program has generated a lot of interest among consumers and we have received many inquires about the tax implications of this popular program. As a result, we are clarifying state tax rules for people who trade in their used vehicle under the “Cash for Clunkers” program.

The “Cash for Clunkers” program, Federal law, H.R. 2346, The Consumer Assistance to Recycle and Save Program, allows qualifying consumers to receive a $3,500 or $4,500 voucher from the federal government when they trade in qualifying old vehicles and purchase or lease a new one. This federal law provides the value of the voucher received by the consumer is not considered as gross income of the purchaser for purposes of the federal income tax.

California FTB – Personal Income Tax: 2009 Tax Rate Schedules Released

August 21, 2009 | Mike Habib, EA

California – Personal Income Tax: 2009 Tax Rate Schedules, Exemption and Other Amounts Released

According to figures obtained from California Franchise Tax Board’s Tax Practitioner Liaisons Office, there will be decreases in the indexed 2009 California personal income tax rate schedules, return filing thresholds, standard deduction amounts, itemized deduction limitation amounts, personal exemption amounts, credit amounts, and alternative minimum tax exemption amounts. These figures are based on the negative 1.5% inflation rate, as measured by the California Consumer Price Index (CCPI) for all urban consumers from June of 2008 to June of 2009.

Tax Rate Schedules

California IOU

July 10, 2009 | Mike Habib, EA

Registered Warrants Can Pay Your State Income Tax Bill

(Sacramento) – The Franchise Tax Board (FTB) announced it accepts California registered warrants (IOUs) as payment of current and past due personal and corporate tax obligations.

To pay a tax liability with an IOU, endorse the IOU on the reverse side with the phrase “Pay to the order of Franchise Tax Board” and your signature then mail it with the tax bill or estimated tax voucher. By law, FTB cannot deposit the IOU until it is payable, but FTB will credit the taxpayer’s account on the date the IOU is received to stop the accrual of interest. If the IOU is not sufficient to pay the outstanding balance, taxpayers should send an additional payment for the difference. Otherwise, the taxpayer will receive a bill reflecting the new balance due.

CA New Home Tax Credit

June 26, 2009 | Mike Habib, EA

CA New Home Tax Credit Going Fast

Sacramento – The Franchise Tax Board (FTB) announced today that the $100 million allocated by the state in new home tax credits will soon be gone.

As of June 17, 2009, FTB had received more than 9,800 applications claiming nearly $95 million. Because some of these applications are duplicates, revisions, or invalid, FTB plans to accept 12,000 applications. This will ensure enough valid applications will be available to allocate the full $100 million credit. However, FTB will only issue approved credit certificates until the $100 million is exhausted.

FTB Tax Problems

April 6, 2009 | Mike Habib, EA

Former Vice President of Finance Pleads Guilty to Grand Theft, False State Income Tax Returns

A Chatsworth man pleaded guilty to one felony count of grand theft and one felony count of filing a false state income tax return.

James I. Ha, 35, was employed as the vice president of finance for a local marketing company. According to court documents, Ha abused his position of trust by embezzling more than $350,000 from 2001 – 2004. In addition, Ha also failed to claim this money on his state income tax returns for the same years. All income is taxable including income from illegal sources. Ha used the embezzled funds for personal expenses.

Tax Withheld on Sale of Real Estate in California

March 10, 2009 | Mike Habib, EA

Get your CA FTB withheld tax refund today by contacting Mike Habib, EA at 877-788-2937

CA Tax Rates

According to the California State Franchise Tax Board (FTB), partnerships that are not based in California should file withholding tax on the sale of real estate in the state. The CA tax rate is at 3 1/3 percent of the proceeds from the sale or 9.3 percent of the gain. The board also increased the alternative withholding rates for real estate sales by S corporations. These groups are now subjected to a 10.8% rate for the sale of real property. On the other hand, financial S corporations are subjected to withholding rates of 12.8%.

For installment sales

CA LLC Fee Invalid

August 13, 2008 | Mike Habib, EA

California LLC fee again held invalid

Ventas Finance I LLC v. Calif. FTB, Cal. Ct. App., Dkt. Nos. A116277; A117751, 08/11/2008

The California Court of Appeal once again has ruled invalid the state fee imposed on limited liability companies (LLCs) under former Rev. & Tax. Cd. § 17942 (the “§ 17942 fee”). Affirming the lower court, the Appeal Court held that the § 17942 fee as applied to Ventas, an LLC that conducted business in California and other states, was not fairly apportioned and, therefore, violated the Commerce Clause because the levy was based on total income without apportionment to income attributable to, or derived from, California sources. The court rejected the Franchise Tax Board’s (FTB’s) request for judicial reformation of the former statute to allow an apportioned fee refund since Ventas did business in California and other states unlike in the earlier Northwest case (that held the fee invalid) where the LLC conducted no California business. However, the court concluded that neither federal due process nor any principle of California law requires the FTB to refund the entire amount that Ventas paid. Consequently, the refund should be limited to the amount Ventas paid for the years in issue that exceeds the amount that would have been assessed, without violating the Commerce Clause, using a method of fair apportionment. The postjudgment order awarding attorney fees was also reversed, and remanded for the lower court to redetermine eligibility and the amount of reasonable fees in light of the partial reversal of the lower court’s judgment.