Does your client use the 3-factor apportionment formula for tax years 2013 and after?

• Position: FTB NEWS - California. Franchise Tax Board

For tax year 2013 and after, taxpayers are required to use a sales-only apportionment formula unless there is an exception under Revenue & Taxation Code secs. 25128 and 25128.7. In a recent tax news article (www.ftb.ca.gov/professionals/taxnews/Editions/April-2016), the FTB shared its plans for taxpayers that used the three-factor apportionment formula in their original returns for tax years 2013 and after.

In the coming months, the FTB may begin contacting taxpayers regarding their method of filing to determine whether an appropriate method was used. For any cases under audit with this issue, the FTB will proceed with its normal audit procedures. If the FTB proposes adjustments to a taxpayer's method of reporting, additional tax, penalties and interest may apply.

Nonwage Withholding in My FTB

Potentially 16 million individuals could register for a MyFTB account. Of these, the FTB has identified up to 131,000 individuals whose MyFTB accounts will not be viewable because they have multiple nonwage withholding credits. The FTB is continuing to make enhancements to the system so all taxpayers with nonwage withholding credits will be able to view their accounts on MyFTB by early summer.

If you're unable to access your client's MyFTB account information, contact the Tax Practitioner Hotline at (916) 845-7057. For more information, visit www.ftb.ca.gov/online/myacct.

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