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3 Important New California Tax Issues

  Sanjiv Gupta CPA  Published 
3 Important New California Tax Issues

Franchise Tax Board will delay the notices for April payments:  With big deficit comes the decline in the level of service you should expect from government.  The Franchise Tax Board has already begun its notice delay process.  Meaning the notices for e-file and paper Statement of Tax Due will be delayed.  You should also expect e-file Return Information Notices delayed for the 2011 tax year.

What to do if you don’t get timely notice:  You can call or stop by at FTB office but the government is simply suggesting taxpayers wait and be patient.

E-pay relief for “disabled” taxpayers:  Good news for some taxpayers.  The Franchise Tax Board has created a permanent waiver of the e-pay requirement for taxpayers who have “a permanent physical or mental impairment that prevents them from using a computer.”  At last, someone is listening.

Do you qualify for this relief?   You qualify for this relief if you can include a physician’s statement attesting to the impairment.  You can also check a box on the form and have the FTB review their account for possible waiver of a previously imposed mandatory e-pay penalty.   This is great news for some of us.  Our office can help you with a penalty waiver if you qualify for this relief.

Would you like to pay Sales Tax on Services? I know the answer, you don’t.  Currently, there is a bill AB1963 that proposes to impose California sales and use tax on almost all services.   This bill would also reduce the sales tax rate in California to 4% (current it is almost at 10%).  If enacted, the new rate will be effective January 1st, 2013.

Want to learn more or oppose this bill, simply click here to send a letter to your legislator.