Tax Season Toolkit: everything you need to navigate through the busy season.

• Position: Tax rules and regulations

As California's rainy season gives way to reveal an azure spring sky, CPAs know that the greater storm is yet to come.

As the holiday season turns into tax season, bringing the promise of constant, adrenaline-fueled deadlines, CPAs can be excused for turning a sentimental eye to winter.

But never fear! CalCPA's annual Tax Season Toolkit is here to help.

As you meet with clients, research what's new in the tax codes and update your software to provide the best service you can, spring ahead and confidently meet the only season that's never late or early--tax season.

California Tax Tips

Practitioner Hotline Hours

The tax practitioner hotline is available Monday-Friday, 8 a.m.-5 p.m., at (916) 845-7057. The hotline is closed on weekends and state holidays. You also can fax questions to (916) 845-6377.

California Package X

A copy of the FTB's Package X will make tax season a little easier. Package X contains 2005 California tax forms and instructions and is offered in bound and loose-leaf print versions.

The FTB is taking orders and will begin shipping Package X in January.

For information, or to download an order form, go to www.ftb.ca.gov/professionals/packageX. Or call (916) 845-7070.

E-file Resources

The FTB has compiled a wealth of e-file resources, including FAQs, an e-file opt-out form (Form 8454), program information, a list of approved e-file software providers, an e-file tutorial, sample client letters, and forms and publications at www.ftb.ca.gov/professionals/efile/M_e_file.html.

You can contact the FTB's e-file help desk at (916) 845-0353 or by fax at (916) 845-0287.

To e-mail the FTB with your e-filing questions, visit www.ftb.ca.gov/emailapps/ero.asp or e-file@ftb.ca.gov.

E-signature Option

The FTB accepts electronic signatures for e-filed returns, mirroring IRS procedures by allowing taxpayers and tax professionals to sign using a personal identification number. The FTB accepts electronic signatures using Self-Select PIN, Practitioner PIN methods and the ERO PIN. In addition, you still can use the California E-file Return Authorization (Form 8453).

For more information, including an e-Signature Responsibilities Chart and related FAQs, visit www.ftb.ca.gov/professionals/efile/esig.html.

California Real Estate Withholding Information for Sellers and Buyers

For sales closing during 2005, California law requires withholding of 3.33 percent of the total sales price on sales of California real property. The seller may be exempt from withholding if they certify that they meet an exemption.

For more information on California's withholding requirements, visit www.ftb.ca.gov/individuals/wsc/California_Real_Estate.html. For questions relating to real estate withholding requirements, call (916) 845-7315.

The FTB also has changed the forms for real estate sales closing on or after Jan. 1, 2005. Forms 593-C and 593-L have been expanded to include non-individuals, and Form 593-W has been eliminated. For more, visit www.ftb.ca.gov/aboutftb/newsroom/withholding2005.html.

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Tax Rates, Tax Threshold and Standard Deductions

The tax rates have been indexed by 2.8 percent for the 2005 tax year.

The tax threshold has risen to $10,764 of adjusted gross income for single and married filing separate taxpayers, and $21,527 for married filing joint, surviving spouse and head of household taxpayers.

The standard deduction will increase for single or married filing separate taxpayers from $3,165 to $3,254. For married, qualifying widow(er), or head of household taxpayers, the standard deduction increases from $6,330 to $6,508. The personal exemption credit increases for single, married filing separate, or head of household taxpayers from $85 to $87 and for married or surviving spouses from $170 to $174. The dependent exemption credit rises from $265 to $272 for each dependent.

Other tax credits affected by indexing include the Joint Custody Head of Household Credit, Dependent Parent Credit, Qualified Senior Head...