• Adjusted Interest Rate for January 2010 to June 2010
• Thousands of Businesses Need to File State Tax Returns
• IRS Tax Calendar

Adjusted Interest Rate for January 2010 to June 2010

Pursuant to Revenue and Taxation Code Section (R&TC) 19521 (formerly 19269), the adjusted interest rate has been determined for the period January 1, 2010, through June 30, 2010. The adjusted interest rate is four percent. This is the rate compounded daily that accrues with respect to various state taxes including: personal income, corporate income, and franchise. The rate for corporation tax overpayments for the period is zero percent. If you are interested in viewing the previous interest and estimate penalty rates, go to ftb.ca.gov and search for interest rates.

Thousands of Businesses Need to File State Tax Returns

On September 14, 2009, FTB announced it began contacting more than 35,000 companies that did business in California in 2007, but failed to file a state tax return for that year.

FTB annually reviews more than 5 million income records from government agencies and financial institutions, and matches them against tax records filed to determine whether some businesses have yet to file. As part of this annual effort, FTB collected approximately $31 million last year from businesses that failed to file tax returns.

Businesses contacted by FTB will have 30 days to file their delinquent tax return or show why one is not due. If no action is taken, they will issue a tax assessment that may include penalties and fees.

Failure to file tax returns is one part of the tax gap that is defined as the difference between taxes owed and taxes paid. California estimates its annual tax gap to be $6.5 billion per year.

For those receiving notices, information is available by calling 866.204.7902. Callers should be prepared to provide the 15-digit notice number.

In March 2009, FTB began a similar program with individual taxpayers, contacting more than 900,000 individuals who earned California income, but failed to file state income tax returns last year.

FTB identifies nonfilers by using more than 350 million income records we receive annually from third parties such as the IRS, banks, employers, state departments, and other sources. In addition, they use occupational licenses and mortgage interest payment information to detect individuals who have not yet filed.

Last year, FTB collected more than $550 million in revenue through these efforts.

For those receiving notices, go to ftb.ca.qov and search for Request/Demand for Tax Return. Taxpayers can request more time to respond, retrieve information that can assist them in filing a tax return, request tax forms, learn about payment options, sign up to receive an email reminder to file, and much more. Individuals can also call us at 866.204.7902 to get information.

IRS Tax Calendar

The Tax Calendar for Small Businesses and Self-Employed (Pub 1518, Catalog Number 12350Z) is now available. This 12-month wall calendar is filled with useful information on general business taxes, IRS and SSA customer assistance, electronic filing and paying options, retirement plans, business publications and forms, and common tax-filing dates. Each page highlights different tax issues and tips that may be relevant to small business owners with room on each month to add notes, state tax dates, or business appointments.

If you pre-order your copy (up to five free) now, the 2010 Tax Calendar will be shipped on November 1.

As a courtesy to all our readers, we will give you one month of free Digital Accounting services if you sign up by Sep 30, 2009. To learn more about this fabulous service, please give us a call for a free consultation.