May 31, 2010

Franchise Tax Board "Practice and Procedures"

Want to know the California's collection procedures are for delinquent taxes? Check out the "Collection Procedures Manual" here. Here is a list of topics in the Manual:

Introduction Section

Responsibility Section

Case Administration Section

Case Processing Section

Debtor Asset Location Section

Voluntary Case Resolution Section

Involuntary Case Resolution Section

Case Servicing Section

Special Processes Section


Are you being audited by the California Franchise Tax Board? Here is the audit manual so you don't have to be surprised by what happen.

Is your partnership being audited? Read the partnership manual.

S corporations are an easy target for revenue collection. What is the Franchise Tax Board's approach to the audit? Here is the S corporation manual.

Want additional help from a tax attorney? Call Mitchell A. Port at (310) 559-5259.

May 27, 2010

Business Programs Through The California Secretary Of State

The Business Entities Section of the California Secretary of State's office processes filings, maintains records and provides information to the public relating to business entities (corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships and other business filings).

Filing Tips: Tips for filing most corporation, limited liability company and limited partnership documents

Forms, Samples & Fees: Forms, document samples and associated fees

FAQs: Answers to the most frequently asked business entity questions

Name Availability: Corporation, limited liability company and limited partnership name availability inquiries and reservations

Annual/Biennial Statements: Corporation and limited liability company statements of information, common interest development association statements and publicly traded disclosure statements

Information Requests: Orders for certificates, copies and status reports

Service Options: Options for online searches and filings, document processing and information requests (for certificates, copies and status reports)

Service of Process: Substituted service of process

Victims of Corporate Fraud Compensation Fund: Restitution to victims of corporate fraud

The Secretary of State's office is often asked what other agencies a business entity may need to contact to ensure proper compliance. This link is a list of the agencies most often referenced.

Need access to California domestic stock, domestic nonprofit and qualified foreign corporations, limited liability company and limited partnership information of record with the California Secretary of State? Click here.

There are several agencies in the State of California that administer a variety of taxes. While other state and local agencies may issue licenses and permits and assess fees or taxes, this link is a list mostly of state agencies that can help determine your tax obligations and provide you with information about tax reporting and taxpayer rights.

Need additional help? Call a business attorney, call Mitchell A. Port at 310.559.5259.

May 24, 2010

Report Tax Fraud In California

If you believe an individual or company is not complying with California's personal income tax or corporate income and franchise tax laws, you can report that information to Franchise Tax Board (FTB). No rewards are offered for reporting this information.

Income tax fraud is intentionally paying less tax than you owe.

Examples of income tax fraud are:

Not filing state income tax returns.

Preparing documents, books, and records that understate the true income or overstate the expenses of a business.

Making false or fraudulent claims for refunds.

Questionable tax practitioner practices.

Failing to report all income received.

Opening and closing of new businesses to evade taxes.

Claiming to be a resident of another state while residing in California.

Reporting Income Tax Fraud

1. What type of information should I provide when reporting a possible fraudulent activity?
Please include the following details if available:

Individual/business name

Individual/business address

Marital status

Spouse's name

Alleged tax violation

How you became aware of the alleged violation

Availability of supporting documents

Asset information (vehicles, property, etc.)

Your contact information (optional)

2. If FTB uses the information I provide to collect more taxes, will I receive a reward?
No. FTB does not pay rewards for informant information.

3. After I provide information to FTB, can I receive updates on the investigation?
No. Privacy and disclosure laws prohibit FTB from sharing information whether action is taken or not.

4. How do I modify information on a report I previously submitted?
If you need to provide additional information or wish to correct previous information, submit another report. On the second report, select the "Additional Information" box at the beginning of the report, and enter your referral number or the name of the person or business you reported.

5. Can the person I am reporting find out my identity?
No. We treat any information you provide as confidential unless compelled by law to do otherwise.

6. How do I know if you received my online referral report?
If your submission is successful, you will receive a confirmation window with a reference number. Keep the number or print the confirmation page.

7. Where do I send supporting documents?

PO BOX 1565

Fax: 916.843.2060

May 7, 2010

Get Help To Solve Your Tax Problems

The IRS provides information on recent tax changes as they impact the following areas:

Disaster Areas
Estates and Trusts
Exempt Organizations
Foreign Issues
IRAs and Other Retirement Plans

Other tax topics are below.

The IRS provides information broken down by most popular categories. Those categories are at: Frequently Asked Question Categories

IRS Procedures
Filing Requirements/Status/Dependents/Exemptions
Itemized Deductions/Standard Deductions
Interest/Dividends/Other Types of Income
Pensions/Annuities/Retirement Plans (i.e., 401(k), etc.)
Social Security Income
Child Care Credit/Other Credits
Earned Income Tax Credit
Estimated Tax
Capital Gains, Losses/Sale of Home
Sale or Trade of Business, Depreciation, Rentals
Small Business/Self-Employed/Other Business
Aliens and U.S. Citizens Living Abroad
Electronic Filing (e-file)
Magnetic Media Filers
Other (Alternative Minimum Tax, Estates, Trusts, Tax Shelters, State Tax Inquiries)
Individual Retirement Arrangements (IRAs)

Finally, the IRS assembled its most frequently asked tax questions in one easy location. Top Frequently Asked Questions

What are the tax changes for this year?
Is there an age limit on claiming my children as dependents?
How much does an unmarried dependent student have to make before he or she has to file an income tax return?
If I claim my daughter as a dependent because she is a full-time college student, can she claim herself as a dependent when she files her return?
Can I receive a tax refund if I am currently in a payment plan for prior year's federal taxes?
For head of household filing status, do you have to claim a child as a dependent to qualify?
What is the American Recovery and Reinvestment Act (ARRA) of 2009?
What should I do if I made a mistake on my federal return that I have already filed?
What is a split refund?
How do I know if I have to file quarterly individual estimated tax payments?

Continue reading "Get Help To Solve Your Tax Problems" »

May 5, 2010

Independent Contractor Withholding

The California Franchise Tax Board offers free webinars and the one on Wednesday, May 5, 2010, at 10 a.m. (PST) is designed for those who must withhold on California source income payments to resident and nonresident independent contractors. The FTB webinar will take a look at:

• The basics of resident and nonresident independent contractor withholding, including backup withholding.

• A summary of the three phases of withholding and what to do before payment (FTB Forms 587, 588, 589, 590), at the time of payment, and after payment of California source income to independent contractors (FTB Forms 592, 592-V, 592-B).

• How the FTB is preparing for process changes that will occur when it implements its new, automated withholding system in late 2010.

• Withholding resources and contact information you can use at any time.

Each webinar is approximately 40 minutes.