Tax minds collide: FIB, CalCPA Committee on Taxation Discuss Trends.

• Author: Williams, Len
• Position: CATax

These annual meetings have proven to be mutually productive over the years because everyone, on both sides of the table. has a problem-solving attitude.

During the morning session, the FIB tells us its plans and goals, while the afternoon session consists of tile FIB presenting answers to questions that have been submitted in advance. These usually aren't easy questions, and take time to research and develop answers---especially if the questions have never arisen before.

The best example of such a question was several years ago about the procedure(s) to be followed when. many years after the death of the first spouse, it turns out that the irrevocable trust hadn't been funded. The answer was 100 percent practical. and was subsequently incorporated into some FIB publication.

This year, much of the morning discussion was spent on the anticipated MyFTB accotmt with 24/7 electronic divess for taxpayers, originally scheduled to (Irina iii late 2014 or early 2015. A subsequent FIB release said that June 2015 is more likely. However, the FTB's goal is to become 100 percent paperless.

One goal of the practitioner community is conlbrmity, which wasn't discussed. However, the December issue of Spidell's California had a headline: "Say goodbye to conformity--it may never come hack.- As a pleasant surprise. California finally did extend the exclusion from COD income for qualified residence debt, so the state now conforms to the Internal Revenue Code in that respect.

FTB News and Developments

* Surspension professional licenses on he wily for those on the lop 500 tax delinquents list. Those Those licenses are in danger of living suspended will be notified and have 43 clays to come imo compliance. Licenses will be susliended 30 days after that 45-day period.

A client who had been representing himself with respect to an Offer in Compromise Willi the FTB was told that: ii he didn't get into compliance, he would be put on the top 500 tax delingitents list, with whatever downsides thai might portend.That motivated him enough to seek the assistance of a tax attorney to assist him in submitting a creditable OIC.

* The FIB has better data clean-up tools capture information. There had been a problem with about 49,1,000 accounts receivable with the wrong addresses.

* The FIB is asking that more representatives ask their clients about using electronic direct deposit and payment of balances due features.

* IN does the state reject [ewer returns due to erroneous...