Tax season toolkit: everything you need to navigate through "the cruelest month.".

"April is the cruelest month," begins T.S. Eliot's landmark "The Waste Land." And while he wasn't necessarily referring to tax season, many CPAs would wholeheartedly agree.

As the holiday season turns (a little too quickly) into tax season, and visions of sugar plums are replaced by a swirl of W-2s, post-holiday depression could easily snowball into tax season blues. But never fear! With CalCPA's annual tax season toolkit, your entrance into tax season will be as smooth and swift as the bottom of a toboggan. Soon you'll be at full-speed, meeting with clients, researching what's new in the tax codes and updating your software to provide the best service you can.

So get ready to turn the cruelest month into the most benevolent time of year.

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 can also fax your questions to (916) 845-6377.

California Package X

Undoubtedly, a copy of the FTB's Package X in hand will make tax season a little easier. The package contains 2003 California tax forms and instructions.

The FTB offers two types of print versions of the 2003 California Package X--in bound and loose-leaf formats--for $17, plus sales tax.

The FTB is taking orders, though it won't begin shipping Package X until January. For information or to download an order form, go to www.ftb.ca.gov/professionals/packageX. Or, call (916) 845-7070.

Mandatory E-file

Perhaps the biggest change in California tax concerns electronic filing. Beginning Jan. 1, 2004, practitioners who prepare more than 100 individual state tax returns per year and use tax preparation software are required to e-file.

The FTB has compiled a wealth of e-file resources to cushion your transition to a brave new electronic world, including FAQs, a copy of the Assembly bill that made e-file mandatory, an e-file opt-out form (Form 8454), program information, a list of approved e-file software providers and forms and publications. All are available at www.ftb.ca.gov/professionals/efile/m_e_file.html.

Although budget cuts have forced the FTB to be a leaner organization, it has increased its e-file help desk staff for the coming tax season. The e-file help desk number is (916) 845-0353, and its fax number is (916) 845-0287. Or, you can e-mail your e-file questions to the FTB by first visiting www.ftb.ca.gov/emailapps/ero.asp.

This month, the FTB will make its 2003 e-file handbook and supplement available to all who participate in the e-file program.

Manufacturer's Investment Credit

California's 2003 budget brought with it the sunsetting of the manufacturer's investment credit, which provided a 6 percent tax incentive that allowed manufacturers to offset the cost of buying new equipment. Purchases made through Dec. 31, 2003, are eligible for the credit.

California Real Estate Withholding Information for Sellers and Buyers

A new state income tax law expands the withholding requirement to include resident individuals who sell California real property on or after Jan. 1, 2003. For more information to help you understand California's new withholding requirements, visit www.ftb.ca.gov/individuals/wsc/California_Real_Estate.html.

For complex questions relating to real estate withholding requirements, call (916) 845-7315.

Estimated Tax Payments

A provision put in place this year increases the required estimated tax payments from 80 percent to 90 percent of the current year's tax, unless the estimated tax is based on the previous year's tax.

California Not Conforming...