FTB updates: plus new legislation on tax return due dates.

• Author: Flamer, David
• Position: CA Tax

The FTB recently announced late breaking news items. Highlights include:

Interest Rates: The interest rate charged by the FFB for corporation and personal underpayments of tax, and estimated tax penalties, is being increased to 4 percent as of Jan. 1, 2017. The rate was unchanged at 3 percent for the past four years.

Identity Theft Hotline: When assisting clients with identity theft issues, there's a new phone hotline for FTB matters: (916) 845-7088. The fax number remains unchanged at (916) 843-0561. The ID Theft Affidavit form (Form FTB 3552) can be faxed to this number.

Expedited Corporation Revivor Processes: There's now a web-based process that allows business entities to initiate the revivor process. This new procedure is located on the FIB's new "How Can I Revive My Business Entity" webpage (www.ftb.ca.gov/ businesses/faq/742.shtml). Additional information related to suspended entities is presented on the webpage, including reasons why suspension creates disastrous effects.

There's also a new "walk-through" revivor process that can be effected at FTB field offices under certain circumstances. This "rush revivor" process is available to suspended business entities that can prove that they have pending loans, pending federal grants, are in escrow or are facing litigation and must have the entity brought back to good standing. Note that appointments should be scheduled so that the assistor can provide the taxpayer with all of the information, documents, balances due, etc., that must be satisfied for the walk-through revivor to be completed.

Improved Processes for Cancellation or Dissolution of Business Entities: As many practitioners and taxpayers have endured, terminating a business entity can be confusing. The FTB and the Office of the Secretary of State are involved, missteps often ensue and deadlines can be missed. The FTB has identified this as an issue and assembled personnel to review the process and suggest areas of improvement.

My FTB and Taxpayer Security: The FTB started to use a 10-day hold within My FTB on the ability to access a client's data on new submissions of both power of attorney and tax preparer relationships. This hold period will provide time for the FTB to confirm with the subject taxpayer that the relationship is valid and that the practitioner can access taxpayer data. After the 10-day hold expires, the taxpayer's My FTB data will be available unless the taxpayer contacts FTB and disapproves the access.

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