One-Time Penalty Abatement The California Franchise Tax Board has implemented a new one-time Penalty Abatement program. This new program began on April 17, 2023. California Assembly Bill 194 has granted the FTB authority under Revenue Taxation Code(R&TC) Section 19132.5 to issue one-time abatements for timeliness penalties on individual income tax returns including Form 540, Form
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Navigating Financial Planning: Understanding the 2024 IRS Gift and Estate Tax Changes
2024 IRS Gift and Estate Tax Changes As the year 2023 draws to a close, the landscape of financial planning is undergoing a significant transformation due to the Internal Revenue Service’s (IRS) recent updates to the gift and estate tax exemption limits. Understanding the 2024 IRS Gift and Estate Tax changes is pivotal for individuals
IRS Provides Some Relief for Required Minimum Distributions from Retirement Accounts and IRA Rollovers
Required Minimum Distributions The IRS recently issued official guidance providing relief to taxpayers who may not have taken a Required Minimum Distribution (RMD) from their IRA or other retirement accounts. The official guidance also provides relief to taxpayers who took a distribution in 2023 from a retirement account and wish to make a rollover. Learn
Tax and Vice – Taxation of Gambling and Cancellation of Debt
Taxation of Gambling This installment of our Tax and Vice blog series will discuss the tax treatment of cancelled debts. I will use a recent California Appeals case (Tak Chun Gaming Promotion v. Long) to illustrate the potential tax consequences when a gambling debt or any debt gets cancelled or there is a so called
Tax and Vice – Are IRS Deadlines Set in Stone?
A Discussion of Deadlines to File Collection Due Process Appeals and Other Filings – IRS Deadlines This installment of Tax and Vice discusses a Tax Court case involving a marijuana dispensary. To set the scene, a cannabis dispensary owner, Snoop Dogg, and Willie Nelson were having an epic sesh when they were rudely interrupted by
Taxation of Hotel Rewards Programs, Gift Cards, and Points Programs
Taxation of Rewards Programs A recent US Tax Court case illustrates how the taxation of hotel rewards programs, gift cards, or points programs could be a potential tax trap for the unwary. In Hyatt Hotels Corp v. Comm’r (TC Memo 2023-122), the Hyatt hotel chain ended up with a hefty assessment as a result of
IRS Announces New Tax Rates for 2024
IRS Tax Rates for 2024 The IRS recently announced new tax rates for the 2024 calendar year. The tax tables can be found below. The standard deduction will be $29,200 for Married Filing Join Taxpayers, $21,900 for Taxpayers filing head of household, and $14,600 for single taxpayers and Married Filing Separate Taxpayers. Learn more about
California Employment Development Department (EDD) Liens and Levies: What Businesses Need to Know
What is an EDD Lien? The California Employment Development Department (EDD) is responsible for administering the state’s unemployment insurance, workers’ compensation, disability insurance, and personal income tax programs. When businesses and employers fail to pay their payroll taxes or file required reports, the EDD may take collection action, including liens and levies. So, what is
Tax and Vice – Do Cannabis Dispensaries Need to Install Turnstiles to Defend Themselves in a CDTFA Sales Tax Audit?
CDTFA Sales Tax Audit This installment of our Tax and Vice Blog will discuss the turnstile approach the CDTFA is using in many sales tax audits of cannabis dispensaries. A couple of recent California Office of Tax Appeals cases (Appeal of Divine Wellness Center and Appeal of Mutual Medicinal Collective) highlight the turnstile approach the
Navigating IRS New Guidance on Transfer of Publicly Traded Partnership Interests
Publicly Traded Partnership Interests The Internal Revenue Service recently issued new guidance to provide more clarity on the transfer of Publicly Traded Partnership (PTP) interests to foreign investors. While the guidance is a step forward, it brings with it its own sets of questions and considerations. Here is a breakdown of these updates and what