Income may be exempt, even if it wasn t paid by the tribe.

Transcription

1 Your California Solution Since 975 California Taxletter May Date, 03 In This Issue Volume 35.5 FTB settlements: What are they, and when would you try? age 5 Underpayment penalty: Did your software properly compute it? age 53 What if FTB doesn t send use tax to BOE? age 54 Amazon and Overstock lose in New York age 55 Taxpayer Advocate can abate penalties, fees, and interest age 56 FTB intercept of state and federal refunds age 56 Reasonable cause exception to underpayment penalty fails age 57 Important Tax Rulings age 58 Thumb Tax age 59 California Contacts age 60 FTB changes position on taxation of Native Americans Income may be exempt, even if it wasn t paid by the tribe. By Renée Rodda, J.D. Editor After reviewing legal authority, the FTB has determined that income earned for services performed on the reservation by tribal members who live on their tribe s reservation is not taxed by California, whether it is paid by the tribe or by a third party. Historically, the FTB has taken the position that income was only exempt from California tax if it was paid by the tribe. They announced their change in position on April, 03. Taxpayers are entitled to file a claim for refund or credit if they previously reported reservation-source income paid by a third party as taxable income on their California income tax return. However, the statute of limitations for refund claims on timely filed 008 returns (returns not filed on extension) expired April 5, 03. Excluding income from tribal land Generally, California taxes the worldwide income of its residents and the Californiasource income of its nonresidents. This is known as the McClanahan exemption. Native American individuals, however, are exempt from California income tax on income from tribal land if they meet all of these requirements: They are members of a federally recognized Indian tribe listed in Rev. roc ; They live in their tribe s Indian country (not another tribe s country), which includes reservations, dependent Indian communities, and Indian trust allotments; 3 and Taxpayers are entitled to file a claim for refund or credit[.] The income is sourced in the same Indian country in which they live and where they are tribal members. With the FTB s change in position, so long as the services are performed on the reservation, the income is exempt even if it is paid by a third party. Individuals who live in California Indian country are still California residents. As California residents who are otherwise exempt See Native Americans, page 50 FTB extends filing deadline in three situations The FTB generally conforms to IRS disaster-related deadline extensions. By Lynn Freer, EA ublisher We had three possible filing problems this April 5. Here are the penalty relief provisions offered by the FTB. April 5 FTB website problem Because the FTB s website was down intermittently, and slow at other times, the FTB announced that personal income tax payments, made by April 6 using FTB Web ay, will be considered timely. Specifically: The FTB accepted without interruption all e-filed returns. There was no problem with this system; and If your client could not get through to the FTB s website to make a payment, the individual could have mailed a check (if there is not a mandatory e-pay requirement) on April 5 or made a web payment on April 6, which would have been considered timely. Any taxpayer, including those subject to the mandatory e-pay requirement, will not be assessed penalties if the payment was made on April 6, 03. If the payment was made after that, the taxpayer may request a reasonable cause waiver if, because of some situation over which he or she had no control, the payment was made after April 6. We believe the FTB would abate the penalty if there was reasonable cause See Extensions, page 5

2 Spidell s California Taxletter CaliforniaTaxletter Editorial Staff ublisher: Lynn Freer, EA, resident of Spidell ublishing, Inc., specializes in writing and speaking on California tax law. She works closely with all state tax agencies, is often consulted for input on policy decisions and always has the inside information on what s happening at the state level. Editor: Renée Rodda, J.D., is Editor of Spidell s California Taxletter and Analysis & Explanation of California Taxes, and associate editor of Spidell s Elder Client lanner newsletter. Renée lectures extensively on tax issues that impact California taxpayers and aging Americans. She has authored numerous articles and publications including A ractical Guide to Trusts as well as self-study courses and webinars, including a course on the complicated issues facing California Registered Domestic artners. She is a graduate of Chapman University School of Law with a Tax Law Emphasis. Associate Editor: Tim Hilger, CA, is Associate Editor of Spidell s California Taxletter and Spidell s Analysis & Explanation of California Taxes and editor of Spidell s Elder Client lanner. He has authored numerous articles, reports and self-studies on tax, financial and accounting matters. He has a Bachelor of Science in business administration (accounting) from California State University Long Beach and a Master of Science in taxation from Golden Gate University. Managing Editor: Kathryn Zdan, EA, is Spidell ublishing s Managing Editor. She writes and assists in research and editing articles for Spidell s California Taxletter and Spidell s Elder Client lanner. She also updates many of Spidell s special reports. She has a master s degree from California State University Fullerton, and completed her undergraduate work at the University of Michigan. Copy Editor: Austin Lewis Newsletter Layout: Jansen Cudal Native Americans, continued from page 49 EXAMLE 5-: John is a member of a federally recognized Indian tribe, and he lives on the tribe s reservation. John works in a national chain restaurant that is located on the reservation but is not operated by the tribe. John has been working at the restaurant since 008, and has been paying California taxes on his wages. Based on the FTB s announcement John will not pay California tax on his 0 wages, and he can file refund claims for 009, 00 and 0. He may only amend the 008 return if the statute of limitations is still open; ie, he timely filed his 008 return within the extended period and he files his amended return or claim for refund within four years of the date he timely filed his return. California still wants returns Native Americans who live in California Indian country, and whose only income is from the Indian country source where they live as tribal members, are not required to file a California income tax return. However, the FTB prefers that these individuals file a return to show the amount of exempt income as an adjustment on Schedule CA (540). Also, these individuals should file a California return to get a refund of any withholding or estimated taxes. Another benefit to filing a return is it starts the running of the statute of limitations. Some might say, however, that the disadvantage is that the FTB might question whether the exclusion of tribal-source income is correct. While this may be true, the FTB will request returns that are not filed based on income reported to the IRS on Forms W- and 099. from taxation on tribal income, they are taxed on income earned from sources outside of Indian country. Living on another tribe s land Native Americans who live in another tribe s Indian country (possibly their spouse s tribe) are subject to California income tax on all income from tribal land. In one appeal, an enrolled member of the Twenty-Nine alms Band of Mission Indians who lived on the reservation of another federally recognized tribe (the Agua Caliente Band of Cahuilla Indians) was taxable on her per capital payments from gaming operations conducted on her tribe s reservation. 4 The McClanahan exemption provides that a state may not impose an income tax on tribal members whose income is derived from their own tribe s lands and who reside on their own tribe s land. The court agreed with the FTB that the McClanahan exemption does not apply when a taxpayer resides on the land of a tribe in which the taxpayer is not a member. The court also held that the tax was not discriminatory simply because the tribe s reservation lands of the taxpayer were small, compared to other tribes, and had limited housing. Filing refund claims Taxpayers are entitled to file a claim for refund or credit if they previously reported reservation source income as taxable income on their California income tax return within either of these timeframes:. Four years from the original due date of the return. Four years from the date the return is filed if the return was filed within the automatic extension period. Additionally, they are entitled to file a claim if they made payments See Native Americans, page 5

3 May, 03 Native Americans, continued from page 50 How to get a refund If you have clients that may be entitled to refunds, here is what you must do:. File an amended return.. Write RESERVATION-SOURCE INCOME on the top of the return in red. 3. Include a computation of the claimed refund amount. 4. Mail the amended return to the FTB. For regular mail, send to: within one year of the date they file the claim (known as the look back provision). 5 For the full text of the FTB s announcement, go to: Native_Americans/Reservation_ Source_Income.shtml Reservation-Source Income Claim for Refund 347 MS F38 Franchise Tax Board.O. Box 779 Rancho Cordova, CA For private carrier or overnight delivery service, send to: Franchise Tax Board Reservation-Source Income Claim for Refund 347 MS F38 Sacramento, CA 9587 FTB Announcement Reservation Source Income Not Subject to Taxation (April, 03) Native_Americans/Reservation_Source_ Income.shtml R&TC McClanahan v. State Tax Commission of Arizona (973) 4 U.S Mike v. FTB (March 5, 00) 8 Cal. App.4th 87 5 R&TC 9306 Extensions, continued from page 49 Boston Marathon: federal conformity The FTB announced that California will follow IR and allow individual taxpayers affected by the Boston Marathon explosions a three-month tax filing and payment extension. This applies to Boston-area taxpayers and others affected by the April 5 explosions. Upon request, the FTB will abate late payment penalties for affected taxpayers who pay their taxes, normally due by April 5 for the 0 tax year, by July 5, 03. Interest owed on payments made after the April 5 deadline is not waived. Affected taxpayers include individual taxpayers who live in Suffolk County, Mass., including the city of Boston. It also includes victims, their families, first responders, others impacted by this tragedy who live outside Suffolk County, and individual taxpayers whose tax preparers were adversely affected. Taxpayers will receive a bill for the late payment penalty through the FTB s normal noticing process. Taxpayers who received a late payment penalty can contact the FTB ractitioners Hotline at: (96) Taxpayers can also request relief by calling the toll-free number: (800) April storms (South and Midwest) The FTB will conform to IRS penalty relief for taxpayers unable to file on time due to severe storms in parts of the South and Midwest just prior to the filing deadline. Taxpayers will qualify for penalty relief if, as a result of being directly impacted by these storms, they were unable to file their returns or pay tax due until after April 5. Because California provides for automatic extensions to file a return, for California purposes, this relief applies to the late-payment penalty. According to IR-03-4, relief is granted provided that taxpayers file the return or pay the tax within a reasonable time after the power outages and transportation problems have been resolved. Affected taxpayers who receive penalty notices from the FTB must contact the numbers provided above to request relief. Neither the IRS nor FTB will abate interest. FTB News Release, April, 8, 03 IR-03-4; from FTB, April 8, 03 This publication is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional advice and assumes no liability whatsoever in connection with its use. Since tax laws are constantly changing and are subject to differing interpretations, we urge you to do additional research before acting on the information contained in this publication. SIDELL S CALIFORNIA TAXLETTER (ISSN No ) is published on the first day of each month by Spidell ublishing, Inc., 34 North Gilbert Street, Anaheim, California Telephone: (74) Fax: (74) Web site: subscriptions@spidell. com. The subscription price is $64 for months. eriodicals ostage aid at Anaheim, CA. 03, Spidell ublishing, Inc. OSTMASTER: lease send address changes to Spidell s California Taxletter,. O. Box 6044, Anaheim, California Federal law prohibits unauthorized reproduction of Spidell s California Taxletter. All reproduction must be approved in writing by Spidell ublishing, Inc. ublisher Emeritus: Robert Spidell. ublisher: Lynn Freer. Editor: Renée Rodda. Associate Editor: Tim Hilger. Managing Editor: Kathryn Zdan. Copy Editor: Austin Lewis. Newsletter Layout: Jansen Cudal

4 Spidell s California Taxletter FTB settlements: What are they, and when would you try? If there is a question of law, consider a settlement where you and the FTB can cut a deal. By Lynn Freer, EA ublisher Arecent case disappeared from the Board of Equalization s calendar because the taxpayer and the FTB have decided to take the case to the FTB s settlement bureau, where the taxpayer and the FTB can negotiate a settlement for some portion of the tax due. The case involves whether certain income of a nonresident is taxable to California. AB 33, which was enacted last year, requires the Board to publish a formal written opinion if the amount in controversy is $500,000 or more. 3 The Eisenberg case would have been the first appeal of an FTB assessment where a written opinion would be required under the new threshold. Now that the case has been taken to the settlement bureau, they will have to keep waiting. While we won t see a written opinion in this case, the situation does serve as a reminder that the FTB will settle when there is doubt as to liability. The settlement program offers taxpayers the ability to negotiate an agreement with the FTB, without the expense and time involved in a lawsuit. So reaching a settlement outside the courtroom can benefit everyone. Use settlement when there are any unclear areas of the law. Here is how and when to use the FTB s settlement bureau. When to request? At any time during the protest, appeals, or refund claims process, taxpayers may request that their cases be submitted to the FTB settlement bureau for consideration. 4 In general, a taxpayer s request must be in writing and include the basis for the request and a good faith settlement offer. When the FTB receives a request for settlement, the settlement bureau reviews the request and either accepts the case for settlement or returns it to the protest or appeal process. In either case, the FTB notifies the taxpayer in writing. Requesting a settlement Settlement requests must include: The taxpayer s name and current address; If the taxpayer is represented by a representative: "" The representative s name, current address, and fax and telephone numbers; and "" A copy of the representative s Form FTB 350, ower of Attorney. The taxpayer s Social Security or taxpayer identification number; The taxable year involved; The tax amount involved; The present status of the dispute (i.e., protest, appeal, or claim for refund); and A good faith settlement offer, including the factual and legal grounds in support of the offer. Taxpayers seeking additional information or wanting to initiate settlement of their civil tax matters in dispute should call or write (providing the required information set forth above) to: Telephone: (96) Fax: (96) Director, Settlement Bureau MS A70 Franchise Tax Board.O. Box 3070 Rancho Cordova, CA After reviewing a taxpayer s case, including the taxpayer s good faith settlement offer, the settlement bureau staff will contact the taxpayer or the taxpayer s representative with its determination as to whether the case will be accepted into the settlement program. If the FTB determines that there is a bona fide factual or legal dispute, the FTB will generally accept the case. Upon review, the FTB may reject a case for a variety of reasons. For example, if the settlement bureau staff perceives a negligible litigation risk to the FTB s position in the case, or if the case lacks sufficient factual development to allow proper settlement consideration, the case would not likely be accepted into the settlement program. Approval of settlements The FTB executive officer or the chief counsel, if authorized by the executive officer, may recommend to the three-member Franchise Tax Board a settlement of any civil tax matter in dispute. The FTB must first submit any such recommendation to the Office of the Attorney General. Within 30 days of receipt of a recommendation, the Office of the Attorney General is required to review the recommendation and advise in writing of his or her conclusions as to whether the recommendation is reasonable from an overall perspective. The three-member Franchise Tax Board must approve or disapprove the settlement recommendation within 45 days of the submission of the recommendation. To disapprove a settlement, the Franchise Tax Board must have a majority vote of the members. Franchise Tax Board meetings to consider settlements are conducted in closed session. For approved settlements: 5 The executive officer and chief counsel may approve any settlement up to $7,500 and index that amount in future years to reflect inflation; and The FTB and taxpayers may resolve taxable years completely through a settlement agreement (just like a closing agreement). ublic record Whenever a reduction in tax or penalties or total tax and penalties in excess of $500 is approved, a public record statement will be placed in the office of the FTB s executive officer with respect to that settlement. Finality All settlements are final and cannot be appealed See Settlements, page 53

5 May, 03 Settlements, continued from page 5 Confidentiality Any settlement offers or any statements or conduct made in pursuit of settlement are not admissible as evidence in any subsequent adjudicative proceeding. 6 This is to eliminate the concern that statements made during settlement negotiations by either taxpayers or FTB staff may be used by one party against the other in subsequent administrative proceedings, which would make the settlement process less effective. CalTaxletter (April 5, 03) California Taxpayers Association Appeal of Richard N. Eisenberg and Anita Eisenberg (03) Cal. State Board of Equal., Case No R&TC 40, as added by AB 33 (Ch ) 4 R&TC Id. 6 Id. Underpayment penalty: Did your software properly compute it? Some software was not properly programmed for the late roposition 30 tax increases. By Renée Rodda, J.D. Editor Taxpayers are not subject to the underpayment of estimated tax penalty to the extent the liability is due to the tax increase under roposition 30. However, in early April we heard that some tax software may not be accurately computing the waiver and we are unsure how the FTB will handle those returns. Now that we have gotten past April 5, we hope to get a better idea of how the FTB is handling the returns. However, since many of your highincome clients file on extension, we want you to be aware of the potential issues. Underpayment penalty Form FTB 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries, does provide for a waiver of penalties to the extent they are caused by roposition 30, but the instructions are a bit convoluted. The instructions state that to request a waiver a taxpayer must do all of the following: Check Yes on form FTB 5805, art I, Question, and in the space provided, explain that you are requesting waiver because of the retroactive roposition 30 increases; Calculate the taxpayer s underpayment penalty using the increased roposition 30 rates. Then recalculate the penalty using the prior year rates to determine the specific waiver amount requested; Check the box on Form 540 or Form 540A, line 3, stating the Form FTB 5805 is attached; and Attach Form FTB 5805 to the back of the tax return. roposition 30 tax rates Effective retroactive to January, 0, California income tax rates increased for taxpayers with taxable income of more than $50,000. California s maximum marginal rate is now.3%. The maximum rate of.3% does not include the % mental health surcharge, which applies to taxpayers with income in excess of $ million. Thus, California now has the highest maximum state tax rate at 3.3%. Hawaii is second with an % maximum rate. New tax rates under roposition 30 Single Filers Joint Filers Head of Household Filers Marginal Tax Rate for 0 $0 $7,455 $0 $4,90 $0 $4,90.0% $7,455 $7,676 $4,90 $35,35 $4,90 $35,35.0% $7,676 $7,897 $35,35 $55,794 $35,35 $45,57 4.0% $7,897 $38,76 $55,794 $77,45 $45,57 $56, % $38,76 $48,94 $77,45 $97,884 $56,400 $66,68 8.0% $48,94 $50,000 $97,884 $500,000 $66,68 $340, % $50,000 $300,000 $500,000 $600,000 $340,000 $408, % $300,000 $500,000 $600,000 $,000,000 $408,000 $680,000.3% More than $500,000 More than $,000,000 More than $680,000.3% See Software, page 54

6 Spidell s California Taxletter Software, continued from page 53 Some software providers calculated penalties using the increased rates and some calculated the penalties using the proper rates, but we have not seen any software that followed the Form 5805 instructions. What will the FTB do with the returns? The FTB has informed us that if the box is not checked but the penalty is properly computed, they will probably not send a notice. They also believe that their system will correct the penalty if the software is computing it improperly. Now that the FTB has received some returns with potential issues, we will see if the system generates notices and/or recalculates penalties. As we receive additional information we will keep you posted. However, as you prepare returns for you clients on extension, we suggest you carefully check these returns to ensure that the waiver request box is checked and the penalty is properly computed before filing the return. What if FTB doesn t send use tax to BOE? FTB liabilities are always paid first. By Lynn Freer, EA ublisher A n individual who is not a qualified purchaser may elect to pay use tax on an income or franchise tax return under R&TC This is normally an easy way to pay the use tax. However, the use tax reported on a return will not be sent to the BOE if: The taxpayer owes a prior FTB liability, in which case the FTB will reduce the use tax remitted to the BOE to the extent the FTB liability is owed; or The FTB determines there is an error on the return which increases the balance due (or decreases the amount available to be applied to estimated tax for the following year). In either of these cases, the FTB will reduce the amount of use tax to be sent to the BOE and use the funds to pay the increased liability or make the FTB estimated tax payment as reported on the return. Correcting errors If the FTB changes the return to account for a prior FTB liability or error on the return, the FTB will send a Return Information Notice (RIN) detailing the amount due to the BOE. The RIN advises the taxpayer to send a copy of the RIN to the BOE along with any payment that was not sent by the FTB. The taxpayer must contact the BOE if there are any problems. If the taxpayer responds to the RIN by timely sending a copy of the RIN and a check to the BOE by the due Using the use tax table Individual taxpayers who are not qualified purchasers may elect to report use tax for single nonbusiness purchases of less than $,000 on their FTB return using either: The actual amount of tax due; or The amount shown on a lookup table. Taxpayers who use the lookup table will report use tax due based on AGI rather than actual receipts. The lookup table provides a safe harbor for a taxpayer who: Reports use tax on an FTB return; and Does not have a single purchase of $,000 or more. Taxpayers with one or more purchases of $,000 or more may calculate their actual use tax owed on those purchases, and use the table to report use tax on all other purchases. The safe harbor will apply to the purchases of less than $,000, but the BOE may assess additional tax on the purchases of $,000 or more. 0 Use Tax Lookup Table Adjusted Gross Income Range Use Tax Liability Adjusted Gross Income Range Use Tax Liability Less than $0,000 $ $80,000 $89,999 $4 $0,000 $9,000 $7 $90,000 $99,999 $47 $0,000 $9,999 $ $00,000 $4,999 $56 $30,000 $39,999 $7 $5,000 $49,999 $69 $40,000 $49,999 $ $50,000 $74,999 $8 $50,000 $59,999 $7 $75,000 $99,999 $94 $60,000 $69,999 $3 More than $99,999 Multiply AGI by 0.05% (0.0005) $70,000 $79,999 $ See Use tax, page 55

7 May, 03 Use tax, continued from page 54 EXAMLE 5-: Gene filed his California income tax return on April 5 and used the use tax lookup table for 0, but he still owed state income tax to the FTB for the prior year. The amount that Gene intended for the use tax is applied to the prior year liability first. The use tax will not be sent to the BOE, and the FTB will issue a RIN. Gene does not pay the BOE, so he receives a bill for the use tax and a 0% penalty assessed by the BOE five months later. He may apply for abatement of the penalty. EXAMLE 5-3: Ginny used the tax table to compute use tax of $47 on her 0 Form 540. Ginny was on an installment agreement with the FTB for a 009 liability and was making monthly payments. The FTB applied the $47 to her prior liability and did not send the funds to the BOE. Ginny responds immediately sending the BOE $47, so she will not be assessed a penalty. date of the FTB tax return, then no penalty will be assessed. However, if the taxpayer does nothing, the BOE will receive information from the FTB and bill the taxpayer approximately three to five months later. Because this will likely be after the due date of the FTB return, the BOE will assess a 0% penalty and interest. However, the BOE s policy is to abate the late payment penalty for a first time offense. And, this can be done online. Individuals may request relief of the penalty online at: esrvcont.htm#erelief Individuals may also complete Form BOE-735, Request for Relief from enalty, Collection Cost Recovery Fee, and/or Interest, and send it to: State Board of Equalization.O. Box Sacramento, CA R&TC 645. Amazon and Overstock lose in New York New York finds that the use of affiliates does establish presence in the state for sales tax purposes. By Kathryn Zdan, EA Managing Editor The New York Court of Appeals ruled that Amazon.com and Overstock.com should collect sales tax in the same manner as brick-and-mortar businesses. Amazon and Overstock had separately sued in New York to challenge the 008 law that internet retailers collect sales taxes on online purchases by New York residents. The companies argued that the law violated the Commerce Clause because it was forcing companies without a physical presence in the state to pay tax. However, the courts have found that by using affiliates to push traffic to Amazon and Overstock, the companies are establishing a presence in the state. Most likely, the case will be appealed to the U.S. Supreme Court. States like Colorado and Illinois have ruled in favor of the online retailers, agreeing that taxing them violates the Commerce Clause. However, in late March, the Senate voted 75-4 in favor of adding an amendment that would levy Internet sales taxes to the Marketplace Fairness Act of 03, which has not yet been enacted, and which many pundits believe will never pass. California s Amazon bill California s ABX 8, the Amazon bill, was designed to require larger, out-of-state online retailers to collect use tax on taxable purchases shipped to California consumers. It went into effect September 5, 0. There are two requirements that the online retailer must meet in order to be considered to be engaged in business in California: Sales in the previous months of tangible personal property to purchasers in California that are referred as part of affiliate agreements are in excess of $0,000; and Total sales of tangible personal property to all California purchasers are in excess of $ million. The requirements are met at the website retailer level, not the affiliate level. Thus, a retailer such as Amazon.com is now deemed to have nexus in California if it meets the $0,000 test and $ million test for all sales, even if an individual affiliate does not meet the test. Amazon.com v. New York State Department of Taxation and Finance (March 8, 03) Court of Appeals, State of New York, Case No. 34; Overstock.com v. New York State Department of Taxation and Finance (March 8, 03) Court of Appeals, State of New York, Case No. 33 McCullagh, D. (March, 03) Senate embraces Internet taxes CNET. Available at:

8 Spidell s California Taxletter Taxpayer Advocate can abate penalties, fees, and interest The FTB Taxpayer Advocate can again authorize abatements not allowed under the law. By Kathryn Zdan, EA Managing Editor Effective January, 03, the FTB s Taxpayers Rights Advocate again has the authority to grant relief from penalties, fees, or interest assessed against a taxpayer because of erroneous actions of the FTB. This right was previously repealed on January, 0. The Advocate can review applications and abate any penalties, fees, additions to tax, or interest assessed against a taxpayer beginning on or after January, 03, and before January, 06. Requesting relief Taxpayers use Form FTB 3705, Request for Taxpayer Advocate Equity Relief, to request relief from assessments that are attributable to any of the following: Erroneous action or erroneous inaction by the FTB in processing documents filed or payments made; Unreasonable delay caused by the FTB; or Erroneous written advice that was not issued by FTB chief counsel. According to the FTB, the Taxpayers Rights Advocate may only grant relief under R&TC 004 if the taxpayer did not contribute to the error or delay in any significant way, and relief is not otherwise available under the law (including under any regulation or FTB announcement). Relief granted may not exceed $7,500 and any relief in excess of $500 is subject to review and concurrence by the FTB Executive Officer. 3 If a request is denied, the decision is final and may not be appealed. 4 Who can file Either a taxpayer or their authorized representative can file Form FTB If an authorized representative files for the taxpayer, attach the original or a copy of Form FTB 350, ower of Attorney Declaration, to the form. When to file A refund for any interest, penalty, and fee payments may result from relief granted, only if the applicable statute of limitations for filing a claim for refund remains open. Generally, a claim can be filed no later than four years from the due date of the tax return, or one year from the date of the overpayment. You can access Form FTB 3705 at: misc/3705.pdf AB 686 (Ch. -349) R&TC 004(c)() 3 R&TC 004(c)(3)(A) 4 R&TC 004(f) FTB intercept of state and federal refunds If a taxpayer s refund check is less than expected, it may have gone to satisfy other state debts. By Kathryn Zdan, EA Managing Editor There is a state interagency refund intercept program that requires the FTB to determine whether a taxpayer has a balance due with another government agency and redirect part (or all) of the taxpayer s state tax refund to pay the debt. In addition, the FTB participates in the Treasury Offset rogram and may intercept a federal refund to pay a state tax debt. State refund intercept If the FTB takes part of a taxpayer s refund to satisfy another agency s debt, they will send the taxpayer a notice explaining how much was taken and sent to which agency. If your client disputes the other agency s liability, he or she must contact that agency. The contact information for the agency will be located on the FTB notice. The FTB does not have the authority or ability to make adjustments or discuss why the amount is owed. If a taxpayer owes more than one agency, there is an order of priority that determines who gets paid first. Any leftover amount will be refunded to the taxpayer. riority of debts Refunds are available for intercept after all existing tax debts have been satisfied. If there is more than one agency-offset request, this is the priority:. Delinquent child or family support cases enforced by a local child support agency; Delinquent child or family support cases enforced by someone other than a local child support agency; 3. Delinquent spousal support cases enforced by a local child support agency; 4. Delinquent spousal support cases enforced by someone other than a local child support agency; 5. Unpaid restitution fines; 6. Unemployment benefits overpayment cases; 7. All other California state agencies; 8. California cities and counties; 9. California colleges; and 0. IRS debts. The FTB notes that taxpayers should expect the intercepted amount to take three to four months to post to the other agency account. 3 Use tax paid on FTB return The R&TC allows a taxpayer to elect to pay use tax on an income or franchise tax return. 4 The use tax will be paid after See Intercept, page 57

9 May, 03 Intercept, continued from page 56 the FTB liability but before any other liability. (See What if FTB doesn t send use tax to BOE on page 54.) Refund status You can check the status of a taxpayer s 0 state tax refund by going to: online/refund/ To check a refund online, you must have the taxpayer s: Social Security number; Complete mailing address; and Refund amount shown on their tax return. Taxpayers will generally receive a state tax refund within: 7 0 days for an e-filed return; or 8 weeks from the mailing date on a paper-filed return. Contact the FTB if your client has not received the refund within 5 days of the date it was issued. Contact the Tax ractitioner Hotline with questions at: (96) FTB taking federal refunds Taxpayers will receive a notice if the FTB will intercept their federal tax refund, and they have 60 days to pay their state tax liability in order to avoid the offset. ayments can be made online via the FTB s Web ay. Even if a taxpayer has an OIC plan in place or is making installment payments, the FTB may still offset the federal refund, in addition to any state tax refund, until the outstanding tax debt is paid. 5 Taxpayers who have their federal income tax refunds intercepted by the FTB to pay all or a portion of any delinquent state income or franchise taxes are now charged a $ collection fee. The FTB imposes the fee for every offset; therefore, a taxpayer may have more than one fee imposed. 6 riority of debts When more than one debt is submitted for the same taxpayer, the federal Treasury Offset rogram applies the intercepted money in this order: The IRS; Child support; State income tax; and Other state debt. For more information on the Treasury Offset rogram, go to: faq/treasuryoffsetfaq.shtml USC 640(e) Gov t Code 49.3, R&TC FTB Treasury Offset rogram FAQs, Question 6, treasuryoffsetfaq.shtml 6 Gov t Code Reasonable cause exception to underpayment penalty fails Million dollar rule hits whistleblower. By Lynn Freer, EA ublisher In 009, Thomas Cantor was granted three whistleblower awards totaling $3,69,558. Because he did not pay 90% of his current year tax, the Board ruled he was subject to an underpayment of estimated tax penalty of $5,503. CA asks for relief The law regarding estimated tax payments for individuals with AGI over $ million was enacted in September 008 and effective for years beginning on or after January, 009. The Board was not swayed by the taxpayers CA, who requested reasonable cause relief because the law was new, and denied the taxpayers request for relief of the penalty for reasonable cause. Cantor and his wife also argued that: Their receipt of the settlement proceeds was a one-time occurrence and they otherwise have a good payment history; and Their late payment of estimated tax was not done intentionally, as they sought the advice of their accountant and were given incorrect information. No reasonable cause allowed With two exceptions, the law does not provide for reasonable cause exception to the underpayment of estimated tax penalty and the taxpayers did not meet either of these exceptions. 3 The Board found that an honest mistake did not fit into the reasonable cause provisions. Reasonable cause exceptions There are two statutory bases for waiver of the underpayment of estimated tax penalty set forth in IRC 6654(e)(3), to which California conforms: IRC 6654(e)(3)(A) provides for waiver of the penalty if the government determines that by reason of casualty, disaster, or other unusual circumstances the imposition of the penalty would be against equity and good conscience. IRC 6654(e)(3)(B) provides for waiver of the penalty if the government determines that: The underpayment was due to reasonable cause; and Either: "" The taxpayer retired after having attained age 6; or "" The taxpayer became disabled in the taxable year for which estimated payments were required to be made or in the previous taxable year. Reliance on the advice of a competent tax advisor may constitute reasonable cause that would warrant See Underpayment penalty, page 58

10 Spidell s California Taxletter Underpayment penalty, continued from page 57 Estimated tax payment requirements: California/federal differences California requires individual taxpayers with California AGI equal to or greater than $ million ($500,000 for MFS) to pay 90% of the current-year tax, or be subject to the underpayment of estimated tax penalty. There is no prior-year safe harbor for these taxpayers. 4 California conforms, with modifications and one major exception, to IRC 6654, which provides generally for a penalty for failure to pay estimated taxes. 5 In addition, IRC 6654 provides for installment due dates, the amounts of the required installments, and exceptions, including the annualized income installment method. 6 California conforms to these federal provisions (using California amounts): For individuals who owe at least $500 on their current year return ($50 for MFS), the required annual payment is the lesser of: "" 90% of the tax shown on the return for the current taxable year; 7 or "" 00% of the tax shown on the return for the preceding taxable year; and The 00% prior-year safe harbor is increased to 0% if the taxpayer s prior-year AGI exceeds $50,000 ($75,000 for MFS). 8 Here are the California differences: There is no prior-year safe harbor if the taxpayer s California AGI is $ million or more (see below); California s quarterly payments are 40%, 30%, 0%, and 30% of the total due; and There is no penalty for taxpayers with tax liabilities of less than $500 ($50 for MFS). California law contains an exception that applies to taxpayers at all levels of income and tax liability. Under R&TC 936(c)(), a taxpayer is not subject to the underpayment penalty if, in the prior year, the taxpayer had a liability (minus credits for withholding, but not including estimated tax payments) of less than $500 ($50 for MFS). relief from other penalties, but it does not provide a basis for a waiver of the estimated tax penalty under IRC 6654(e)(3)(A). 9 The IRM provides the following examples of situations where a waiver may be granted if it is determined that imposition of the penalty would be against equity and good conscience: The taxpayer s records are destroyed by fire or flood or other natural disaster; 0 The taxpayer becomes seriously ill or is seriously injured and is unable to manage his affairs; or Nevada-source income taxable for California purposes A taxpayer incorrectly excluded all of his Nevadasource income from California tax, onehalf of which should have been included on the California return he filed with his wife because it was community income. Although the taxpayer and his wife were separated, she still lived in California and they were still filing jointly. Under Nevada law, the Nevadasource taxable income the taxpayer earned during the year in question is The taxpayer designates that an overpayment of tax shown on a prior return is to be credited against estimated tax, but the overpayment is offset for either past-due child support or non-tax federal debt under IRC 640(c), and the taxpayer is not notified of the offset before the due date of the estimated tax installment. In Farhoumand, the tax court held that an honest mistake did not violate equity and good conscious as that phrase is used in IRC 6654(e)(3)(A). Important Tax Rulings community property and therefore one half of it is attributed to his spouse. Appeal of Yoshio Aoki (October 4, 0) Cal. St. Bd. of Equal., Case No Locked-up records not good cause for failing to file The FTB assessed $3,895 in tax for a taxpayer who filed no return, basing their calculation on the amount of mortgage payments made for the year in question. The taxpayer argued unsuccessfully that she was Appeal of Thomas L. and Cheryl A. Cantor (October 5, 0) Cal. State Board of Equal., Case No R&TC Appeal of Geroge A. and Jean D. McEwen (August 0, 985) 85-SBE-09 4 R&TC R&TC R&TC IRC 6654(d)()(B) 8 IRC 6654(d)()(C) 9 IRM IRM IRM Farhoumand v. Comm., TCM 0-3 not able to file because her financial documents were locked in a storage container and she was unable to access them to deliver to her tax representative. Appeal of Mary Ann Ault (October 4, 0) Cal. St. Bd. of Equal., Case No Husband s employment in China doesn t qualify taxpayer for HOH A taxpayer was denied HOH status where she tried to claim that her husband was permanently in China on business. 3 See ITRs, page 59

11 May, 03 ITRs, continued from page 58 She argued that he would continue to work in China until retirement because he is no longer able to tolerate being bossed around by younger people in the Bay Area and she was therefore an abandoned spouse. The Board found that the house the taxpayer owned had been purchased with her husband, his California driver s license was not surrendered, and he returned to California as his work schedule permitted, surmising that his absence was only temporary and that the taxpayer did not qualify for HOH filing status. 3 Appeal of Jennifer Hu (October 4, 0) Cal. St. Bd. of Equal., Case No IRS s stay denied in return preparer regulation case The U.S. Court of Appeals for the District of Columbia has denied the IRS s motion to stay the injunction that prevents the IRS from operating its return preparer regulation program. This means that until the appeals court rules on the case, the program is further suspended. The district court s original decision prevents the IRS from moving forward with the larger RTR program during the appeals process, but it does not affect the IRS requirement that practitioners have TINs. To view the district court s January decision, go to: gov/cgi-bin/show_public_ doc?0cv0385- Loving et al. v. Internal Revenue Service (March 7, 03) U.S. Court of Appeals for the District of Columbia, Case No. :-cv JEB (order) 0 3 fire prevention fee bills delayed The Department of Forestry and Fire rotection (CAL FIRE) has requested that the BOE postpone fire prevention fee billings for Fiscal Year 0 3, and the BOE has announced that they are No CDC credit allowed before child is born A taxpayer was denied the Child and Dependent Care Expenses Credit for 007 and 008 when she provided non-contemporaneous written receipts as proof of payment, as well as statements from the child care provider that were not signed under penalty of perjury. 4 Additionally, the receipt numbers for 008 preceded the receipt numbers for 007, and for 007 she claimed payments for her son the month before he was born. 4 Appeal of Ruby Lemos (November 4, 0) Cal. St. B.d of Equal., Case No Thumb working with CAL FIRE to develop an appropriate billing schedule. At this point it is unclear when the bills will be sent. As more information becomes available, the BOE will update its fire prevention fee media resources page at: taxprograms/fire_prevention_ fee_resource.htm BOE News Release NR 3-3-G (March 0, 03) Resources for reporting tax fraud to EDD The EDD has provided a website and telephone number where you can file reports of fraud relating to payroll tax, unemployment insurance, and disability insurance. Reporters can remain anonymous. ayroll tax fraud can be reported by calling (800) or completing an online Fraud Reporting Form. For more information and to access the form, go to: frmfraudstart.htm Disabled veterans exemption increases for 04 For 04, the disabled veterans property Tax Nephew isn t a qualifying child for married HOH taxpayer A married taxpayer was denied HOH status when he tried to claim his nephew as his qualifying dependent. 5 Because the taxpayer was still married (although he had been separated and living apart from his wife for four years), he was unable to claim his nephew as a qualifying dependent. For married individuals a qualifying child must be a natural child, stepchild, adopted child, or eligible foster child. 6 5 Appeal of Jose Magdaleno (November 4, 0) Cal. St. Bd. of Equal., Case No IRC 5(f)(), 7703(b) tax exemption amounts will increase from the 03 amounts of $,8/$83,93 to $4,93/$87, Veterans with income below the household income limit may take the higher exemption; others may take the lower amount. The 04 household income limit will increase from the 03 amount of $54,84 to $56,0. 4 BOE Letter to County Assessors No. 0/03, May, 0 BOE interest rates for second half of 03 The interest rate applicable to overdue and unpaid sales and use tax and other taxes from July, 03, through December 3, 03, will remain at 6%. The interest rate applicable to refunds and credits for tax overpayments for the same period is 0%. Other taxes to which these rates apply include hazardous waste taxes, fuel taxes, cigarette taxes, and alcoholic beverage taxes. These rates and the rates for prior periods can be viewed on the BOE website at: interates.htm See Thumb Tax, page 60

12 Spidell s California Taxletter Thumb Tax, continued from page 59 FTB is sending Cutler notices The FTB has begun sending Notices of roposed Assessment (NAs) to taxpayers who claimed a small business stock benefit on their 008 returns. The first batch was sent on April, 03. This mailing included approximately 70 notices sent to taxpayers who have not requested a waiver of the statute of limitations, and whose statute of limitations is scheduled to expire this month. After April, additional notices will be issued before the statute of limitations expires in subsequent months for taxpayers who do not provide waivers to the FTB. Affected taxpayers can find more information in the FTB s list of small business stock FAQs: Cutler_Decision.shtml California For clients filing a reservation-source income refund claim, send the amended return via regular mail to: For clients filing a reservation-source income refund claim, send the amended return via private carrier or overnight delivery service to: For the full text of FTB s announcement regarding reservation-source income, go to: Taxpayers affected by the Boston Marathon explosions who received a late payment penalty can contact the FTB racticioners Hotline at: Taxpayers seeking additional information or wanting to initiate settlement of their civil tax matters in dispute should call or write: To request relief of the use tax penalty online, go to: Send Form BOE-735 Request for Relief from enalty, Collection Cost Recovery Fee, and/or Interest to: To access Form FTB 3705, go to: To check the status of a taxpayer s 0 state tax refund, go to: Contacts Reservation-Source Income Claim for Refund 347 MS F38, Franchise Tax Board.O. Box 779, Rancho Cordova, CA Franchise Tax Board, Reservation-Source Income Claim for Refund 347 MS F38, Sacramento, CA Reservation_Source_Income.shtml (96) or (800) (96) (phone), (96) (fax), or Director, Settlement Bureau MS A70, Franchise Tax Board,.O. Box 3070, Rancho Cordova, CA State Board of Equalization.O. Box Sacramento, CA For questions regarding refund status, call: (96) For more information on the Treasury Offset rogram, go to: To view the district court s January decision regarding the RTR program, go to: Fire prevention fee media resources: For more information and to access the Fraud Reporting Form, go to: To view the BOE interest rates for the second half of 03, go to: For more information on Cutler notices, go to: doc?0cv resource.htm and_cutler_decision.shtml

13 Seminars SM Supplement to the May 03 issue of Spidell s California Taxletter Spidell s 03 Summer Tax Seminar 8:30 a.m. - 0:0 a.m. Medicare surtaxes, extensions, and other big 03 issues 0:0 a.m. - :00 p.m. From the K- to the 040 return resented by Tim Hilger, CA Understand how the new Medicare tax works who pays and on what income: º º Take home a list of what partnership and Schedule K- income is and is not subject to the 3.8% surtax º º Balance capital gains and losses to reduce the tax º º repare to solve the real estate professional/trade or business dilemma º º Compute the 0.9% additional Medicare tax on earned income º º Uncover the weird computation of the 0.9% tax for an individual with a W- and self-employment income º º Make sure your client isn t subject to an underpayment penalty Review ATRA 0 depreciation, extenders, and estate tax Understand the estate tax changes, including deceased spouse s unused exclusion, rates, and gift tax issues :5 p.m. - :55 p.m. Divorce and community property resented by Claudia Hill, EA, MBA See where all those numbers on Schedule K- go on your client s individual return Understand the difference between basis and at-risk rules and when losses are and are not deductible Find out what you do with the currently nondeductible losses Know when income is passive or investment income, and subject or not subject to passive loss rules Get information on all types of Schedule K- entities: º º Trust and estate º º artnership/llc º º S corporation Take home sample forms and practice tips you ll use later 3:05 p.m. - 4:45 p.m. Retirement and retirement planning resented by Renée Rodda, JD Examine the latest cases addressing alimony, noncustodial children, and other hot topics Study the new IRS community property splitting form: º º Compare it with Spidell s form º º See what potential problems it may cause º º Discuss work-arounds to avoid a C 000 Understand California community property law: º º What is and is not community property º º When does the community begin and end (for married and RD couples) Uncover your potential conflict of interest problems when your clients divorce Learn to use IRS new community property splitting Form 8956 Help your clients create the most tax-efficient property settlement Solve C 000 problems on returns where income is split See what two Supreme Court cases could mean for RDs and same-sex married couples resented by Steve Honeyman, CA Compare the various types of pension plans for individuals and businesses See which plans will set aside the greatest amount of income for the employer/owner Evaluate the benefits of Roth conversion See how to change your mind after the Roth conversion and recharacterize (undo it) Use the IRA-to-charity conversion rules to reduce taxes, even for the lower- and middle-income client See how to avoid IRA penalties: º º Forgot to take RMD º º Rollover not timely completed Understand how to compute RMDs for spouses, beneficiaries, and others Examine Social Security benefit payments for widowed and divorced individuals Help your client decide whether to take Social Security benefits now or at full retirement age Compare Medicare to MediCal Get 9 hours of CE for the price of 8! (lunch session included) Lunch anel: Tax planning 03 style Moderated by Steve Yukelson, CA, and Lynn Freer, EA Chow down and get some tax planning tips to save your clients money. As time permits, we ll also answer other tax questions. The lunch panel is optional. If you choose to eat lunch and participate, you will qualify for an additional hour of federal continuing education credit. Spidell ublishing, Inc.

14 # Get 9 hours of CE for the price of 8! (lunch session included) Each location includes FREE parking, continental breakfast, lunch, soda break, and print manual Spidell s 03 Summer Tax Seminar: Day Date City Location Tuesday July 9, 03 San Jose San Jose Airport Garden Hotel Wednesday July 0, 03 So. San Francisco So. San Francisco Conference Center Thursday July, 03 leasanton Hilton at the Club Friday July, 03 Sacramento Hilton Arden West Monday July 5, 03 San Diego Scottish Rite Event Center Tuesday July 6, 03 Orange DoubleTree Hotel Anaheim/Orange County Wednesday July 7, 03 Burbank ickwick Gardens Conference Center Thursday July 8, 03 Culver City DoubleTree Hotel Los Angeles Westside Source Code: TL53 Course time: 8:30 a.m. to 4:45 p.m. Lunch: :00 p.m. to :5 p.m. Spidell ublishing: Experienced... Trusted... Connected This seminar is designed to meet the requirements for up to 9 hours of continuing education for CAs, As, and CFs; up to 9 federal tax hours for EAs and CRTs (CTEC); and up to 7.5 hours for attorneys. IRS provider No. CRA7E. Spidell ublishing, Inc. is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CE Sponsors, 50 Fourth Avenue North, Suite 700, Nashville, TN, Web Site: www. nasba.org. This seminar is designed to meet the requirements for up to 9 hours of continuing education for the California Board of Accountancy. Basic Level. Field of Study: Taxes. Delivery method: Group Live. For more information regarding administrative policies, such as complaints or refunds, contact Spidell ublishing at (74) There are no prerequisites or advanced preparation required. Seminars SM G Spidell s 03 Summer Tax Seminar... $9* Location: Supplement to the May 03 issue of Spidell s California Taxletter Spidell s 03 Summer Tax Seminar Call for group discounts of 5 or more. Cannot combine with other offers. Date: # G Check # G Charge my: G MC G Visa G AmEx G Discover Name Company Name Card Number Billing ZI Exp. Date Security Code Address City/State/ZI hone Fax Signature *Additional $0 fee for registration at the door for all seminars. lease use a separate form for each person registering. Seminar includes continental breakfast, lunch, and parking at all locations. Cancellation olicy: $50 cancellation fee if you cancel fewer than seven (7) days before any seminar. Request refunds by July 3, 03, or save the $50 fee and convert the seminar into self-study. (Tell us where to your follow-up letter) We need your professional license/registration number(s) for continuing education credit. CA/A No. EA No. TIN CF No. CRT (CTEC) No. Bar No. Order by fax: (74) or phone: (74) Order by mail:.o. Box 6044, Anaheim, CA Order online:

15 Supplement to the May 03 issue of Spidell s California Taxletter Spidell s 03/4 Fall Federal and California Tax Update Seminar Health care taxes and changes start NOW! SAVE $ 5 when you order by May 3, 03! Take one day out of your busy schedule to attend Spidell s Fall Federal and California Tax Update Seminar and be ready to tax plan in 03, prepare returns in 04, and learn about new 3.8% and 0.9% tax, plus new health insurance requirements. Also: Drepare D for the new HI taxes: They start in 03 DSuccessfully D help your client become a California DUse D underpayment penalty exceptions to reduce new nonresident tax increases DUncover D new guidance on when an LLC is doing DUnderstand D new individual and employee health business in California insurance mandates DReview new federal and state cases involving: D D DSee which extended tax benefits will expire DTake advantage of new tax planning strategies (November/December seminars only) D oo oo oo oo Failed IRC 03 exchange Built-in gains Mortgage interest and charitable contributions Cancellation of debt Compare us to others! Spidell Other Yes No Yes No Take advantage of a great price ($04)*... Use the printed manual all year to answer federal and California tax questions.... Search updated e-version of our famous 450+ page manual at no extra cost**... Receive follow-up letter and updates throughout the year... Choose from more than 45 convenient locations plus live webinar dates... Trust the California company with California speakers... Take home a year-end client letter for your California clients... Solve conformity questions with Spidell s Conformity Checklist... Free lunch and parking for all attendees at all locations.... No cancellation fee if you cancel 7 days prior to seminar (or switch to self-study)... *Discount available until 5/3/3 **Anticipated delivery: February 04 Spidell ublishing, Inc. is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CE Sponsors, 50 Fourth Avenue North, Suite 700, Nashville, TN, Web Site: This seminar and webinar is designed to meet the requirements for 8 hours of continuing education for the California Board of Accountancy. Basic Level. Field of Study: Taxes. Delivery method: Group Live and Group Internet-Based. For more information regarding administrative policies, such as complaints or refunds, contact Spidell ublishing at (74) There are no prerequisites or advanced preparation required. Spidell ublishing... Experienced... Trusted... Connected Spidell ublishing, Inc..O. Box 6044 Anaheim, CA hone: (74) Fax: (74)

16 Supplement to the May 03 issue of Spidell s California Taxletter Spidell s 03/4 Fall Federal and California Tax Update Seminar 8:30 a.m. to 4:45 p.m. (seminars include lunch) Day Date City Venue Day Date City Venue Monday Nov. 8 Modesto DoubleTree Modesto Thursday Dec. 9 Ontario DoubleTree Ontario Monday Nov. 8 Concord Hilton Concord Thursday Jan. Stockton Hilton Stockton Tuesday Nov. 9 San Rafael Embassy Suites San Rafael Thursday Jan. Costa Mesa Hilton Orange County/Costa Mesa Tuesday Nov. 9 Burbank ickwick Gardens Conference Center Friday Jan. 3 Del Mar Hilton San Diego/Del Mar Wednesday Nov. 0 Oxnard Residence Inn River Ridge Friday Jan. 3 Berkeley DoubleTree Berkeley Marina Thursday Nov. San Luis Obispo Alex Madonna Expo Center Monday Jan. 6 Sacramento DoubleTree Sacramento Friday Nov. Bakersfield DoubleTree Bakersfield Tuesday Jan. 7 Long Beach Long Beach Marriott Monday Nov. 5 City of Industry acific alms Hotel and Conference Center Tuesday Jan. 7 Milpitas Crowne laza San Jose/Silicon Valley Monday Dec. Sacramento Crowne laza Sacramento Northeast Wednesday Jan. 8 asadena Hilton asadena Monday Dec. Escondido California Center for the Arts Thursday Jan. 9 Westlake Village Hyatt Westlake laza Tuesday Dec. 3 Rohnert ark DoubleTree Rohnert ark Friday Jan. 0 Valencia Hyatt Regency Tuesday Dec. 3 leasanton Hilton leasanton at the Club Monday Jan. 3 San Bernardino Hilton San Bernardino Wednesday Dec. 4 So. San Francisco So. San Francisco Conference Center Monday Jan. 3 Santa Rosa Hyatt Vineyard Creek Wednesday Dec. 4 Fresno Radisson Fresno Tuesday Jan. 4 San Diego Scottish Rite Event Center Friday Dec. 6 Monterey Embassy Suites Monterey Bay Tuesday Jan. 4 Sacramento Crowne laza Sacramento Monday Dec. 9 Anaheim Anaheim Marriott Wednesday Jan. 5 So. San Francisco So. San Francisco Conference Center Tuesday Dec. 0 Culver City DoubleTree Hotel Los Angeles Westside Thursday Jan. 6 San Ramon San Ramon Marriott Wednesday Dec. Woodland Hills Warner Center Marriott Monday Jan. 0 Anaheim Hilton Anaheim Friday Dec. 3 San Jose DoubleTree San Jose Tuesday Jan. Burbank ickwick Gardens Conference Center Monday Dec. 6 San Diego Scottish Rite Event Center Wednesday Jan. Woodland Hills Warner Center Marriott Monday Dec. 6 Santa Barbara Fess arker s DoubleTree Resort Friday Jan. 4 Temecula echanga Resort & Casino Tuesday Dec. 7 Burbank ickwick Gardens Conference Center Week of /6 /0 TBA Culver City/L.A. Location TBA Wednesday Dec. 8 Torrance Torrance Marriott South Bay Week of /7 /3 TBA San Jose DoubleTree San Jose Live Webinar Times (Two-day webinar: 8:30 a.m. to noon acific Time each day) Webinar Webinar Dec. 8 and Dec. 9 Jan. 7 and Jan. 8 # This seminar is designed to meet the requirements for 8 hours of continuing education for CAs, As, and CFs (CFs do not receive credit for webinar version of this course); 6 hours of Federal Update CE for EAs, 6 hours of Federal Update and CA for CRTs, and 6.75 hours of General MCLE credit for attorneys. This seminar has been designed to meet the requirements of the IRS Return reparer Office; including sections 0.6 and 0.9 of Department of Treasury s Circular No. 30 (rovider No. CRA7E); Course No. CRA7E-U I (live), CRA7E-U O (online); the California State Board of Accountancy; the California Bar Association; the Certified Financial lanner Board of Standards, and the California Tax Education Council. This does not constitute an endorsement by these groups. The state boards of accountancy have final authority on the acceptance of individual courses for CE credit. For more information regarding administrative policies such as complaints or refunds, contact Spidell ublishing at A listing of additional requirements to renew tax preparer registration may be obtained by contacting CTEC at.o. Box 890, Sacramento, CA , or by phone at , or on the internet at SOURCE CODE: TL53 03/4 Fall Federal and California Tax Update 03/4 Fall Federal and California Tax Update Call for group discounts of or more. Cannot combine with other offers. $9 $04* Location/Webinar No: Date: G Check # Name G Charge my: G MC G Visa G AmEx G Discover Company Name # Card Number Billing ZI Exp Date Security Code Address City/State/ZI hone Fax Signature *Offer expires May 3, 03. Additional $0 fee for registration at the door. lease use a separate form for each person registering. Cancellation olicy: $50 cancellation fee if you cancel fewer than seven (7) days before the seminar, or save the $50 fee and convert the seminar into self-study. Request refunds by January 3, 04. We need your professional license/registration number(s) for continuing education credit. CA/A No. CF No. EA No. CRT No. CA Bar No. TIN Order by fax (74) or phone (74) Order by mail:.o. Box 6044 Anaheim, CA Order online: caltax.com