How do you think taxpayers decide it is in their best interest to avoid cheating on their taxes? The same way most children learn from watching other children try something they were told not to do, and see the precocious child get hurt or punished for the action.
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Facts about Franchise Tax Board Settlements
The California Franchise Tax Board (FTB) has authority to settle administrative civil tax disputes. The civil tax disputes include those that arise out of protests, appeals or refund claims filed by taxpayers.
What Is a California Sales Tax Exemption?
If you own a business which produces and sells tangible goods, then you are obligated to pay sales tax to the CDTFA. There are, however, a number of exemptions to this rule, some of which apply to various types of goods and others which attach to certain buyers.
California Payroll Tax Appeals – Part Two
During an appeal, the taxpayer should prepare and file a pre-trial brief or memorandum of points and authorities, in which he or she describes the relevant law and its application to his or her case in support of of it.
The taxpayer may want to locate and interview helpful witnesses, including workers previously interviewed by EDD, principals of the business and its management employees.
California Payroll Tax Appeals – Part One
It is important to note that according to Unemployment Insurance Code (“UIC”) Section 1735, an officer, owner or any person in charge of affairs of any corporation, LLC or LLP, is personally liable for the amount of the contributions, withholdings, penalties, and interest unpaid by said business entity, if business entity willfully fails to pay the amount.
Assessments become delinquent if not paid before they become final, and subject to a penalty of 10%. UIC Section 1135, Sections 1222 and 1224 provide that assessments become final (and delinquent) after 30 days from an assessment date, or the taxpayer petitions or appeals assessment, within 30 days of an administrative law judge or appeals board decision date.
Therefore, filing an appeal generally extends the amount of time the taxpayer has to pay.
Get to Know California Income Tax Brackets
In California, state income taxes are generally among the highest in the country, but the burden is spread among different segments of the population. The rate of California income tax is arranged on something of a sliding scale, separated by income tax brackets.
Tax Help for Seniors: How Taxes Change as You Get Older
Taxes may be certain, but they are not immune to change. As you age, your tax situation will alter. Understanding the myriad rules around senior deductions, eligibility for various credits and the ways in which pensions and investments are taxed can be daunting, but a little knowledge goes a long way to ensuring that your golden years are comfortable and financially secure.
The California Franchise Tax Board & Business Income Taxes
California can be an expensive state in which to do business, and it’s not getting any cheaper. Small businesses in the state are particularly hard hit under the state tax laws.
California has a higher than average state income tax imposed on business and personal income, plus it engages in double-taxation when it comes to business entities structured so that the income passes through to the owner.
The Franchise Tax Board is the agency responsible for administering personal and business income tax in the State of California. While the state generally follows the lead of the IRS in setting policy, it does not do so in every instance, as we shall see.
Learn How to Beat the IRS with the Tax Master Class
The first “Tax Master Class,” masterminded and hosted by Sam Brotman, took place on Thursday, April 29, 2021. Due to the current COVID-19 climate, the event was on Zoom, but for those who missed it, a recording will be made available.
Brotman’s message was aimed at business owners owing more than $100K in taxes. Although the IRS is systematic he warned that with its new influx of money and pressure from the U.S. Treasury to fill the widening $441 billion tax gap, it is far less likely to let the “big whales,“ slip through their nets .
With his many successful years of defending clients against the IRS and the state of California, Brotman decided to put on a seminar about alleviating tax debt, in a sense, performing a much needed, long-form, free public service announcement.
Using his interest in high-stakes poker as a stage, he conveyed that dealing with the IRS is not a game of luck or chance, it’s a game of skill. In this way, his “Tax Master Class,” offers learning the edge to beating the IRS at their own game.