Tax News You Can Use – August 2016

Posted on August 12, 2016 · Posted in Industry News, Latest Updates

8/5/16 – Tax News You Can Use

IRS News:

PATH Act ITIN Changes – The Protecting Americans from Tax Hikes (PATH) Act includes changes to the IRS Individual Taxpayer Identification Number (ITIN) program, including requiring some taxpayers to renew their ITINs beginning in October. In addition, ITINs that have not been used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return unless renewed by the taxpayer. Also, ITINs issued prior to 2013 that have been used on a federal tax return in the last three years will need to be renewed starting this fall, and the IRS is putting in place a rolling renewal schedule. Click here for details.

501(c)4 Organizations – Section 506 has been added to the Internal Revenue Code requiring an organization to notify the IRS of its intent to operate as a section 501(c)(4) organization. The IRS has developed Form 8976, Notice of Intent to Operate Under Section 501(c)(4), which organizations should use to provide this notification, and which must be submitted electronically. Click here for details.

New FATCA FAQ – The IRS has published a new FAQ to the Foreign Account Tax Compliance Act (FATCA) FAQs General Compliance section regarding submission of Form 8809-I, Application for Extension of Time To File FATCA Form 8966, when an additional 90-day extension to file Form 8966, FATCA Report has been requested.

New TIGTA Brochure – The Treasury Inspector General for Tax Administration (TIGTA) has a new informational brochure providing current information about TIGTA’s three major program offices: the Office of Audit, the Office of Investigations, and the Office of Inspections and Evaluations. Each section provides an overview of TIGTA’s oversight of the IRS.

Aliso Canyon Relocation Reimbursement – As part of a relocation plan for residents living near the Southern California Gas (SoCal Gas) Company’s Aliso Canyon storage field who were affected by a natural gas leak, SoCal Gas was required to pay on behalf of, or reimburse, affected residents for certain relocation and cleaning expenses. Announcement 2016-25 informs affected area residents that the IRS will not assert that these amounts are includable in gross income.

Foreign Earned Income for U.S. Overseas Taxpayers Webinar – The IRS webinar,  Foreign Earned Income for U.S. Overseas Taxpayers, is now available on demand..

IRS 101 Webinars for Tax Professionals – The IRS Stakeholder Liaison Western Area is offering a series of webinars, IRS 101. Register now to learn valuable information as you earn CE credit.

Click here to download the flyer for additional details. Please email sl.western@irs.gov with any questions.

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FTB News: 

FTB Tax News – The August 2016 issue of TaxNews, FTB’s monthly online publication, includes information about:

  • New identity theft hotline
  • FTB interest rate increase
  • “Inside FTB – Dissolution/Cancellation Process Team”
  • Outreach letters to taxpayers to claim the CA Earned Income Tax Credit (EITC)

Click here to subscribe to Tax News and news flashes to automatically receive time-sensitive information via email.

California Competes Tax Credit August 22 Application Deadline – The California Competes Tax Credit is available to businesses that relocate to California or stay and expand in California. For fiscal year 2016/2017, $243.3 million of the California Competes Tax Credits will be available for allocation during three application periods. The Governor’s Office of Business and Economic Development (GO-Biz) is hosting over 30 informational workshops on applying for the credit.

During the first application period, $75 million will be available for allocation. Applications for the credit will be accepted at through August 22, 2016. Click here for more information and to apply for the California Competes Tax Credit.

2015 Filing Season Update – Did you know that the FTB added approximately 250,000 new MyFTB registrants during the 2015 filing season and that MyFTB accounts were accessed 875,000 times? Click here for more details.

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BOE News: 

Bank Change for EFT Program – Beginning July 1, 2016, EFT payments for the BOE changed from Citibank to MUFG Union Bank, N.A. (Union Bank). Click here for new bank and payment processer details.

Emergency Tax Relief for Business Owners Affected by Wildfires – Business owners and tax and feepayers affected by the Sand Fire in Los Angeles County and the Soberanes Fire in Monterey County may request extensions to file their returns, and ask for relief from penalties and/or interest for some taxes and fees or to replace copies of records lost or damaged. Click here for details.

Emergency tax or fee relief is available from the BOE for business owners and tax and feepayers directly affected by disasters declared as state of emergencies. Acting Governor Tom Torlakson issued an emergency proclamation for Los Angeles and Monterey counties on Tuesday, July 26 due to the effects of the Sand and Soberanes Fires.

Tax Guide for Medical Cannabis Businesses – BOE’s Tax Guide for Medical Cannabis Businesses provides general guidance regarding issues relating to the sales and use tax laws and other programs administered by BOE which may affect the medical cannabis industry.Publication 557, Tax Help for the Cannabis Industry is another convenient resource.

Sign Up for BOE Updates – Click here to subscribe to email lists and receive the latest news, including newsletters, tax and fee updates, public meeting agendas and other announcements.

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EDD News: 

California Employer Newsletter Now Available – The 2016 second quarter California Employer newsletter is now available online, with information about the phase-in of mandatory e-file and e-pay, updated e-Services for Business tutorials, the change of depository bank for the Electronic Funds Transfer (EFT) program, and California’s unclaimed property law.

Payroll Tax Relief for Los Angeles and Monterey Counties – Employers in Los Angeles County directly affected by the Sand Fire and those in Monterey County directly affected by the Soberanes Fire may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit state payroll taxes without penalty or interest. For more information, visit the EDD’s Emergency and Disaster Assistance for Employers web page, or contact EDD’s Taxpayer Assistance Center at 888-745-3886.