On September 25, 2017, Governor Brown signed S.B. 813 into law, which, effective January 1, 2018, expands the existing California state voluntary disclosure program to include out-of-state trusts with California beneficiaries and non-resident partners. Such taxpayers will now be eligible to use the voluntary disclosure program to bring non-California trusts into compliance with California state tax laws. In addition, the Franchise Tax Board (FTB) may waive late-filing penalties for certain types of entities and returns under the program.
Certain partnerships that failed to file their required federal tax returns by the new, April 15th due date for tax years beginning with 2016 may be provided penalty relief, according to Internal Revenue Service Notice 2017-47. The calendar-year partnership due date was moved up from April 18th by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. If your partnership filed its returns with the IRS and provided appropriate copies to receipients by the historical due date, or requested an extension by that time, you may qualify for penalty relief. For more information, click here.
More than one million people earned money in 2013 but did not file a California State Income Tax Return and they will be hearing from the Franchise Tax Board (FTB).