Taxpayers who have been relying upon Section 530 to provide relief with respect to their classification of service providers as independent contractors rather than employees should take note of the fact that Section 530 is now under attack from Congress and the Obama Administration. Background of Section 530 Section 530…
The California Franchise Tax Board (FTB) has recently issued a Legal Notice generally providing that taxpayers who previously filed incomplete IRS Forms 8886 or failed to file Forms 8886 with FTB will avoid penalties by filing completed forms within 60 days. Taxpayers that may have concerns regarding Form 8886 FTB…
The statutory requirements for filing a claim for refund are set for in Cal. Rev. & Tax. Code 19322. The statute requires the claim to be (1) in writing; (2) signed by an authorized person; and (3) must state the “specific grounds” for the refund claim. The regulatory provisions and…
For purposes of the California sales and use tax law, a “sale” and “purchase” do not include the design, development, writing, translation, fabrication, lease or transfer for a consideration of title or possession of a custom computer program. An issue that often arises with respect to a custom computer program…
Pursuant to Cal. Rev. & Tax. Code Section 19306(a) a claim for refund typically must be filed within for years from the date the return was filed, four years from the last day prescribed for filing the return (determined without regard to any extension of time for filing the return),…
Taxpayers intending to change their residency for California personal income tax purposes should be aware that intent alone is insufficient to establish new residency. Moreover, intent coupled with physical acts of starting to move or transition to another state is also insufficient to establish new residency. The California courts have…
Pursuant to Cal. Rev. & Tax. Code Section 17041, a California resident is taxed on all income, from whatever sources derived. In contrast, Cal. Rev. & Tax. Code Sections 17041(b) and 17951 state that nonresidents and part-year residents of California are only taxable on income from sources within California. Exactly…
Pursuant to Cal. Rev. & Tax. Code Section 17014(a), a resident is an individual who (1) is in California for “other than a temporary or transitory purpose” or (2) is “domiciled” in California but is outside California for “a temporary or transitory purpose.” Presence within California for more than nine…
In situations where the taxpayer has not paid the tax in full but has otherwise filed a valid claim for refund, Cal. Rev. & Tax. Code Section 19322.1 allows a taxpayer to file an informal claim for refund tolling (delaying the expiration of) the statute of limitations. Practitioners should be…
Cal. Rev. & Tax. Code Section 19043.5 was added by the California Legislature during the 2001-2002 legislative session. Under the prior law, if an adjustment proposed by the Franchise Tax Board (FTB) did not result in additional tax due, but only affected the amount of a tax credit that may…