The Franchise Tax Board (FTB) is sending letters to more than 45,000 California businesses that have not filed their 2012 state income tax returns. Each year FTB reviews more than 5 million income records received from the IRS, the State Employment Development Department, the State Board of Equalization, financial institutions, and other businesses.
On June 26, 2014, the IRS issued information about its new voluntary Annual Filing Season Program (AFSB).
But before you get too excited, you should know that California Registered Tax Preparers (CRTPs) will automatically be issued a Record of Completion if they are registered in good standing with CTEC for the 2014-15 year and have a valid PTIN.
If so, you should take note of a tax court case (Hom (DC CA /6/4/2014)) decision requiring an on-line gambler to file an FBAR for an on-line gaming account with an out-of-the-country on-line casino. He was fined for not making an FBAR reporting of his online account and the tax court sided with the government.
The IRS has released (effective 6/12/14) the final Cir 230 Regulations dealing with written advice provided by tax practitioners. As part of the final regulations the IRS has listened to industry comments and modified the “covered opinion rules” thus eliminating the need for those annoying e-mail disclaimers.
When petitioners filed for Chapter 7 bankruptcy, they sought to exclude roughly $300,000 in an inherited individual retirement account (IRA) from the bankruptcy estate using the “retirement funds” exemption.