Page 2March 1998Tax professionals and individualtaxpayers are using the Franchise TaxBoard’s new tax payment voucher ingreater numbers than expected. At presstime, more than six out of 10 taxpayerswith tax liabilities have mailed theirpayments and returns with Form 540-V,“Return Payment Voucher forIndividuals.”Although there is no penalty for not usingthe voucher, FTB has asked taxpayers tofill it out and mail it in with their returnsbecause it is helpful in processing returnsand payments accurately and efficiently.If you are one of the tax professionalsadvising clients to use the voucher, youwill find a revised version of thevoucher instructions at FTB’s
Internet address.You may download the revisedinformation as a separate form or as partof either the “Resident Booklet” or the“Nonresident Booklet.” The revised formalso is included in the paper and CD-ROM versions of the 1997 Package X.(The original version was included in the1997 personal income tax booklets andalso printed as a separate form availableby mail order from FTB.)The revised voucher instructions clarifythat the amount entered on the vouchershould match the amount of the check ormoney order being remitted, includingany 1997 penalties or interest. Theinstructions read: “Enter the amount of payment that you are sending with yourreturn. If you are paying penalties orinterest in addition to the tax you owe, besure to enter the total amount of yourcheck or money order on Form 540-V.”
Volume 98-2 March 1998
is a bimonthlypublication of the Taxpayer AdvocateBureau, California Franchise TaxBoard. Its primary objective is toprovide information to income taxpreparers about state income taxlaws, regulations, policies andprocedures.
Members of the Board:
Kathleen Connell, ChairState ControllerDean AndalChair, State Board of EqualizationCraig L. BrownDirector, Department of Finance
Executive Officer:Gerald H. GoldbergEditor:Pat Huberty
To update or correct your address or to subscribe to TAX NEWS (send $12 for a one-year subscription), write:
TAX NEWSP.O. Box 520Rancho Cordova, CA 95741-0520or call: (916) 845-7070.
For information about a client’saccount, contact:
Tax Practitioner Support Unit
(916) 845-7057 (phone)(916) 845-6377 (fax)
For recorded answers to questionson California taxes, to order formsor check on a refund, call:
(800) 338-0505From outside U.S. (916) 845-6600
To send a facsimile about a client’saccount, transmit to:
(800) 852-5711From outside U.S. (916) 845-6500
TDD (800) 822-6268
FTB on the Internet
Printed on recycled paper.
Taxpayers UsingNew PaymentVoucher
In December 1997, the Franchise TaxBoard asked about 8,100 corporations tofile their delinquent 1995 tax returns.This month, FTB will send Notices of Proposed Assessments (NPAs) to theones that did not produce a return orexplain why they do not have a filingobligation.The assessments include not only FTB’sestimate of the tax due but also penalties,interest and fees related to thedelinquency.FTB bases its tax assessments oninformation about the corporations’income and activities that the InternalRevenue Service, State Board of Equalization and EmploymentDevelopment Department supply:
The IRS provides the names of corporations that file federal returnsand that have California addresses.Also included is income informationfrom the federal tax return.
The SBE supplies incomeinformation on corporations withactive California sales and use taxpermits.
EDD provides the names of corporations with employees subjectto payroll withholding requirements.Also this month, FTB will contact anadditional 25,000 corporations withrequests to file a delinquent 1995corporate tax return.If some of your clients receive either theNPA or the request to file, you may beable to save them money by urging themto respond quickly. The sooner theycomply with the tax laws the smaller theamount of interest and penalties will be.Clients who want more information abouteither notice will find answers tofrequently asked questions by callingFTB’s automated voice response systemat (800) 478-7194.
CorporationsFail to Filefor 1995