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Individual Mandate Exemptions

19 Nov

These exemptions can be claimed on the tax return: You were uninsured for less than 3 consecutive months You were living abroad or not lawfully present in the U.S. You were incarcerated You are a member of a health sharing ministry You are a member of an Indian tribe or have access to Indian Health […]

When is a Tip Subject to Sales and Use Tax?

10 Sep

Restaurants that are maintaining records consistent with guidance issued in IRS Ruling 2012-18 will be presumed to be correctly reporting taxable mandatory service charges to the BOE when regulatory amendments adopted by the BOE are finalized.1 The Ruling provides information on the difference between optional tips (which are not subject to sales tax) and mandatory […]

New Like Kind Exchange Form

10 Sep

January 1, 2014, taxpayers who complete a like-kind exchange of California property for property located out of state are required to file Form 3840, California Like-Kind Exchanges, an information return, with the FTB.1 The form (Form 3840) is not yet available for review, but we do have answers to some of the questions you have […]

New Sales & Use Tax exemption for Manufacturing Equipment

10 Sep

Effective July 1, 2014, through June 31, 2022, qualified taxpayers who make qualified purchases may claim an exemption from the state portion of California’s sales tax.1 The state tax rate is currently 4.1875%. The purchaser must still pay the local/district tax. Qualified taxpayer A “qualified taxpayer” is a business primarily engaged (more than 50%) in: […]

Think twice before forming an LLC

10 Sep

Just because a taxpayer can form an LLC, doesn’t mean they should. By Sandy Weiner, J.D., and Renée Rodda, J.D. In a recent article in FTB Tax News, Steve Sims, the FTB’s Taxpayer Advocate, warns taxpayers that “people are often quick to form a limited liability company (LLC) without full consideration of their specific business […]

IRS Repeats Warning about Phone Scams

20 Aug

The IRS and the Treasury Inspector General for Tax Administration continue to hear from taxpayers who have received unsolicited calls from individuals demanding payment while fraudulently claiming to be from the IRS. Based on the 90,000 complaints that TIGTA has received through its telephone hotline, to date, TIGTA has identified approximately 1,100 victims who have […]