Whats new in CA? Voluntary worker classification program to name one.

• Author: Williams, Len
• Position: CATax

As a follow-up to the first item in die CA Tax column that appeared in the September issue of California CPA titled, "Assessors Treating Property Bequests Differently," CalCPA member Dan Oliney points out that, unless die trustor/testator provides otherwise, non-pro-rata distributions are permissible under Probate Code-Sec. 11950 for estates and Sec. 16246 for trusts.

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Parcel Numbers on Schedule A

According to the Oct. 1, 2011, issue of spidell's California Taxletter, the FTB may require the parcel numbers for properties whose property taxes are claimed as an itemized deduction on Form 540, Sch. A. The same news item says that the information will be requested only for residences and properties used for investment or personal purposes. The information will not be requested for property taxes claimed on schedules C, E and F

The reason is that property lax bills, in addition to ad valorem taxes on the property also include amounts due for assessments for sidewalks, streets, etc. that are not deductible.

State Taxes from Rents Collected for Out-of-State Owners

Briefly, property managers (withholding agents) must withhold on all rents collected for non-resident owners if the property is located in California and the property manager has not received Form 588 or 589 from the FTB stating that either no withholding is required or a reduced amount is to he withheld.

The FTB says Form 589 no longer may be faxed but must be mailed or submitted online. An online submission of the form must be followed by faxing required documentation (such as IRS 8804-C Schedule E, expense breakdowns, etc) to the FTB at (916) 845-9512. The fax must include the taxpayer's name, taxpayer ID and the date of the online 589 submission on the fax.

The FTB will process online requests within 10 business days and mailed requests within 21 business days. Business Permit Verification Continues A recent Board of Equalization news release announced that letters were sent to about 9,800 retail businesses in 10 different ZIP codes statewide notifying them of upcoming visits by BOE specialists. The specialists will verify that all businesses are properly registered and have the proper permits. Businesses that received the August mailings were located in ZIP codes 92103 (Venice), 90292 (Marina Del Rev), 91304 (Canoga Park), 91723 (Montclair), 92103 (San Diego), 92501 (Riverside), 94022 and 94024 (Los Altos), and 94590 and 94591...