Spidell's California Minute

Bill would ease passthrough entity tax prepayment requirement

This week we’re covering a bill that has been introduced which would allow entities to make a passthrough entity tax election even if they didn’t make a June 15 prepayment.

LLC filing essentials: what every tax pro needs to know

This week we’re covering what a tax professional needs to know about LLC filing requirements.

Improvements made to MyFTB account

This week we’re covering some enhancements to the MyFTB account system that have improved and streamlined the user experience.

FTB is going after out-of-state preparers

This week, we’re covering the requirement for a nonresident sole proprietor to pay California tax on income received from California.

Key nonconformity issues for 2023 returns

This week we’re covering some key California nonconformity issues for 2023 returns.

Watch out for these common filing season traps

This week we’re covering some filing season traps that taxpayers can fall into, and what to watch out for to avoid these costly mistakes.

Passthrough entities have until end of year to maximize federal tax benefits of elective tax

This week we’re covering why a passthrough entity that made the passthrough entity tax election may want to pay the remainder of the tax by December 31.

Some older POA declarations set to expire December 31, 2023

This week we’re covering some older Power of Attorney declarations set to expire at the end of this year, and how to see which declarations are affected in MyFTB.

Annual tax exemption expiring in 2024 for certain entities

This week we’re covering the expiration of the temporary exemption for the $800 annual tax that’s available for new LPs, LLCs, and LLPs.

Splitting refunds when taxpayers divorce

This week, we’re covering tips for splitting refunds when taxpayers divorce.

California conformity/nonconformity to the SECURE 2.0 Act

This week we’re covering California conformity and nonconformity to various SECURE 2.0 Act provisions.

Verifying estimated tax payments with the FTB

This week we’re covering some things to keep in mind when verifying estimated tax payments with the FTB.

One-time penalty abatement implemented

This week we’re covering the FTB’s new one-time penalty abatement provision, which goes into effect for tax years beginning on or after January 1, 2022.

California tax basis capital account reporting is coming

This week we’re covering California’s tax basis capital account reporting requirement, which goes into effect after a two-year delay.

Avoid unclaimed property fines: get into compliance

This week we’re covering the Unclaimed Property Voluntary Compliance Program to help businesses come into compliance with the unclaimed property reporting requirements.

How gross income from tiered LLCs impacts the LLC fee

This week we’re covering how gross income from tiered LLCs impacts the LLC fee calculation.

California LLC electing S corporation treatment

This week we’re covering some issues that an LLC may face when it elects to be treated as an S corporation, and what the best course of action is.

How to handle identity verification notices from the FTB

This week we’re covering identity verification notices from the FTB and the best way to handle these notices.

Proposition 19 questions answered

This week we’re covering some questions we continue to receive about intergenerational property transfers under Proposition 19.

Passthrough entity tax: to elect or not to elect?

This week we’re talking about considerations for whether and how to make a passthrough entity tax election for 2022 and/or 2023.

CalSavers and California’s retirement mandate

This week we’re discussing CalSavers enforcement notices and what to do if an employer receives one.

The e-pay mandate: don’t combine California estimates

This week we’re covering avoiding the e-pay requirement, which may apply to a taxpayer if they combine estimate payments and exceed the threshold.

Going from a SMLLC to a multimember LLC (or vice versa)

This week we’re talking about some things to keep in mind when a single-member LLC becomes a multi-member LLC, or vice versa.

October 16 storm-related postponement traps to watch out for

This week we’re covering some traps to watch out for regarding the filing postponement to October 16.

Watch out for potential traps when paying passthrough entity taxes

This week we’re covering some potential traps to watch out for when paying passthrough entity taxes.

ERC refunds and California returns, practitioner questions answered

This week we’re covering questions we’ve been receiving from practitioners regarding Employee Retention Credit refunds and California returns.

New business personal property form for short-term rentals

This week we’re talking about the new business personal property reporting requirement for owners of short-term rentals.

When do you need to file Form FTB 3840?

This week we’re covering when taxpayers need to file Form FTB 3840, which is used for reporting like-kind exchanges.

What to do if an LLC filed a partnership return

This week we’re covering what to do if an LLC filed a partnership return when it shouldn’t have.

No long-term care insurance tax in California...yet

This week we’re covering what a long-term care insurance tax might look like if one were to be enacted in California.

Help clients avoid tax when retiring outside California

This week we’re talking about a way you can help clients avoid tax when they retire outside of California, by structuring payouts to take advantage of a carveout from California taxation.

E-file issues that cause filing rejections

This week we’re covering the top reasons for e-file rejections for business and individual returns.

How to respond when clients call about the new California Paid Sick Leave grants

This week we’re covering how to respond when clients call about the new California Paid Sick Leave grants.

FTB continues their outreach letter campaign

This week we’re covering the FTB’s letter campaign regarding Schedule A and Schedule C deductions and what taxpayers should do if they receive one of these letters.

Passthrough entity tax elections and superseding returns

This week we’re covering the passthrough entity tax election and how to make the election on a superseding return, which the FTB defines somewhat differently than the IRS.

Know the filing requirements when exchanging California property

This week we’re discussing filing California’s Form 3840, which is filed when California property is exchanged for out-of-state property.

Storm postponements delay June 15 payments

This week we’re covering how the filing and payment extension affects the June 15 prepayment deadline for the passthrough entity elective tax and the LLC gross receipts fee.

Nonresident sole proprietor income taxability

This week we’re covering nonresident sole proprietor income and California taxability, along with a recent OTA decision regarding an out-of-state accountant.

California’s one-time penalty abatement program is now live

This week we’re talking about California’s new one-time penalty abatement program.

How to minimize the impending SDI tax increase

More information on the October 16 disaster postponement

This week we’re covering some questions that we’ve been receiving from practitioners on the October 16 disaster postponement due to the California winter storms.

SECURE 2.0 Act conformity issues

This week we’re discussing California conformity to the SECURE 2.0 Act.

How to become a California nonresident

This week we’re discussing things taxpayers should consider when they’re moving out of California and establishing residency in another state.

Dissolving unused entities

This week we’re covering voluntary and involuntary administrative dissolution procedures for unused entities.

FTB’s City/County tax information sharing program

This week we’re covering the FTB’s City and County tax information sharing program as it relates not only to home-based businesses, but to employees working remotely from home.

Help clients avoid mandatory e-pay penalties

This week we’re discussing the e-pay mandate and the penalties for failing to make mandatory e-payments.

Timely information sharing, publicizing form changes, top Spidell’s wish list

This week we’re covering some proposals for change that Spidell presented at the FTB’s recent Taxpayer Bill of Rights Meeting.

Middle Class Tax Refunds aren’t really tax refunds

This week we’re discussing California’s Middle Class Tax Refund eligibility and taxability.

SDI wage base cap eliminated starting in 2024

This week we’re covering the elimination of the SDI wage base cap, and what you can do to prepare for this new tax increase on wage earners.

June 15 passthrough entity tax prepayment: fiscal year taxpayers, new entities, and more

This week we’re covering the passthrough entity tax June 15 prepayment requirement as it relates to new entities and fiscal-year taxpayers.