California Tax Blog

Helping Taxpayers Throughout California

Rex Halverson

Don’t Respond to IRS Phone Call Scams and Fake IRS Emails

They’re Just Phishing for Your Personal or Financial Information The IRS does NOT contact taxpayers by phone call out of the blue or via email, but through official correspondence sent through the U.S. mail. Be aware that whenever you get an angry or threatening call from people who say they are from the IRS and

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FTB Releases New Employment Credit Report

The newly released Franchise Tax Board’s Report on the New Employment Credit (NEC) indicates that the credit is a bad joke on California businesses as less than $4 million in credits were actually claimed in 2014 when an estimated $22 million was projected by the FTB. That’s a paltry 18% of the best estimates. This

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CA Sales & Use Tax for Medical Marijuana Dispensaries

I noticed several ads in the local newspaper this weekend that advertised medical marijuana and offered “Free 1/8th with any $40 min. donation” or “Free ½ gram concentrate.” Additionally, there were offers for “3% back for Every Donation” and “20% off when you preload your Loyalty Member Rewards Card.” Although these ads are probably effective

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Winding Down an LLC in California

A funny thing happened to me as I tried to wind down the affairs of an old LLC on 12/16/15.  I began my day by pulling up the form LLC-4/7, Certificate of Cancellation of a Limited Liability Company on the Secretary of State’s website and filling it out online. I then mailed it in. Two

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7 Tips on How to Maintain Contact with Clients

Communication Maintain frequency and volume of contact with client – Contact clients once a month or more.  I try to make at least five to ten telephone calls per day. Diversify your mode of contact – Utilize e-mail, snail mail, phone calls, seminars, speaking engagements, blogs, news articles, invitations to events. Tailor the communication to

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Basic Tax Consequences of Selling Your Home

What is the exclusion? If you sell your home, you may exclude a specific amount of your capital gain from tax. What is the amount of exclusion? Married couples filing jointly may exclude up to $500,000. Unmarried people who jointly own a home and who each meet the Ownership and Use Test may each exclude

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6 Tips for Surviving a Sales Tax Audit

Have a Game Plan Before the Auditor Calls – Understand that the auditor has time constraints and will appreciate your efforts in promoting a quick and easy audit. You should anticipate and prepare for potential issues and questions that an auditor may have. That is to say, you must strategize. Pre-audit your business and identify

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2014 Tax Extenders Act (H.R. 5771)

The House voted December 3rd to extend tax breaks through the end of 2014. The bill contained about 50 provisions benefiting individuals, businesses and non-profits. The bill now goes to the Senate for approval. Some of the larger tax breaks are noted below: Individual Tax Breaks Extended – Amends the Internal Revenue Code to extend

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