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Archives for February 2019

Here are five facts about the new Form 1040

Here are five facts about the new Form 1040

There are several changes to the 2018 Form 1040. However, taxpayers who file electronically may not notice the changes as the tax return preparation software guides people through the filing process.

The IRS worked closely with its partners in the tax return preparation and tax software industries to prepare for tax reform and tax form changes affecting tax year 2018, including the Form 1040. This ongoing collaboration ensures that taxpayers can continue to rely on the IRS, tax professionals and tax software programs when it’s time to file their tax returns.

Here are five things taxpayers need to know about the 2018 Form 1040.

  • The 2018 Form 1040 replaces Forms 1040,1040A and 1040EZ with one 2018 Form 1040 that all taxpayers will file.
  • Forms 1040A and 1040EZ are no longer available. Taxpayers who used one of these forms in the past will now file Form 1040.
  • The 2018 Form 1040 uses a “building block” approach and allows taxpayers to add only the schedules they need to their 2018 tax return.
  • The most commonly used lines on the prior year form are still on the form. Other lines are moved to new schedules and are organized by category. These categories include income, adjustments to income, nonrefundable credits, taxes, payments, and refundable credits.
  • Many taxpayers will only need to file Form 1040 and no schedules. Those with more complicated tax returns will need to complete one or more of the 2018 Form 1040 Schedules along with their Form 1040. These taxpayers include people claiming certain deductions or credits, or owing additional taxes.

Electronic filers may not notice any changes because the tax return preparation software will automatically use their answers to the tax questions to complete the Form 1040 and any needed schedules.

For taxpayers who filed paper returns in the past and are concerned about these changes, this year may be the year to consider the benefits of filing electronically. Using tax software is convenient, safe and a secure way to prepare and e-file an accurate tax return.

More information:
About the Form 1040, U.S. Individual Income Tax Return
Questions and Answers About the 2018 Form 1040
Get Ready for Tax Filing Season
Publication 5307, Tax Reform: Basics for Individuals and Families
Publication 17, Your Federal Income Tax for Individuals
IRS Tax Map

Individuals who need passports for imminent travel should contact IRS promptly to resolve tax debt

Individuals who need passports for imminent travel should contact IRS promptly to resolve tax debt

WASHINGTON ― The Internal Revenue Service today reiterated its warning that taxpayers may not be able to renew a current passport or obtain a new passport if they owe federal taxes. To avoid delays in travel plans, taxpayers need to take prompt action to resolve their tax issues.

In January of last year, the IRS began implementing new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act. The law requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt, which is $52,000 or more. The law also requires State to deny their passport application or renewal. If a taxpayer currently has a valid passport, the State Department may revoke the passport or limit ability to travel outside the United States.

When the IRS certifies a taxpayer to the State Department as owing a seriously delinquent tax debt, they receive a Notice CP508C from the IRS. The notice explains what steps a taxpayer needs to take to resolve the debt. Please note, the IRS doesn’t send copies of the notice to powers of attorney. IRS telephone assistors can help taxpayers resolve the debt, for example, they can help taxpayers set up a payment plan or make them aware of other payment alternatives. Taxpayers shouldn’t delay because some resolutions take longer than others, such as adjusting a prior tax assessment.

When a taxpayer no longer has a seriously delinquent tax debt, because they paid it in full or made another payment arrangement, the IRS will reverse the taxpayer’s certification within thirty days. State will then remove the certification from the taxpayer’s record, so their passport won’t be at risk under this program. The IRS can expedite the decertification notice to the State Department for a taxpayer who resolves their debt, has a pending passport application and has imminent travel plans or lives abroad with an urgent need for a passport.

A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more than $52,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.

Before denying a passport renewal or new passport application, the State Department will hold the taxpayer’s application for 90 days to allow them to:

  • Resolve any erroneous certification issues,
  • Make full payment of the tax debt, or
  • Enter a satisfactory payment arrangement with the IRS.

Ways to Resolve Tax Issues

There are several ways taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt. They include the following:

  • Paying the tax debt in full,
  • Paying the tax debt timely under an approved installment agreement,
  • Paying the tax debt timely under an accepted offer in compromise,
  • Paying the tax debt timely under the terms of a settlement agreement with the Department of Justice,
  • Having requested or have a pending collection due process appeal with a levy, or
  • Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.

Relief programs for unpaid taxes

Frequently, taxpayers qualify for one of several relief programs including the following:

  • Payment agreement. Taxpayers can ask for a payment plan with the IRS by filing Form 9465. Taxpayers can download this form from IRS.gov and mail it along with a tax return, bill or notice. Some taxpayers can use the online payment agreement to set up a monthly payment agreement.
  • Offer in compromise. Some taxpayers may qualify for an offer in compromise, an agreement between a taxpayer and the IRS that settles the tax liability for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to decide the taxpayer’s ability to pay. Taxpayers can use the Offer in Compromise Pre-Qualifier tool to help them decide whether they’re eligible for an offer in compromise.

Subject to change, the IRS also will not certify a taxpayer as owing a seriously delinquent tax debt or will reverse the certification for a taxpayer:

  • Who is in bankruptcy,
  • Who is deceased,
  • Who is identified by the IRS as a victim of tax-related identity theft,
  • Whose account the IRS has determined is currently not collectible due to hardship,
  • Who is located within a federally declared disaster area,
  • Who has a request pending with the IRS for an installment agreement,
  • Who has a pending offer in compromise with the IRS, or
  • Who has an IRS accepted adjustment that will satisfy the debt in full.

For taxpayers serving in a combat zone who owe a seriously delinquent tax debt, the IRS postpones notifying the State Department of the delinquency and the taxpayer’s passport is not subject to denial during the time of service in a combat zone.

BUREAU OF CANNABIS CONTROL, § 5401. Limited-Access Areas

§ 5401. Limited-Access Areas

(a) A retailer shall establish limited-access areas and permit only authorized individuals to enter
the limited-access areas.
(b) Authorized individuals include individuals employed by the retailer as well as any outside
vendors, contractors, or other individuals conducting business that requires access to the limitedaccess area.
(c) An individual in the limited-access area who is not employed by the retailer shall be escorted
by an employee of the licensee at all times within the limited-access area.
(d) An individual who enters the limited-access area shall be at least 21 years of age.
(e) A retailer shall maintain a log of all authorized individuals who are not employees of the
retailer who enter the limited-access area. These logs shall be made available to the Bureau upon
request.
(f) A retailer shall not receive consideration or compensation for permitting an individual to enter
the limited-access area.

 

New Sales and Use Tax Rates Operative April 1, 2019

New Sales and Use Tax Rates Operative April 1, 2019

The tax rate changes listed below apply only within the indicated city or county limits. The new tax rates, tax codes, acronyms, and expiration dates will be available to view and download as a spreadsheet prior to April 1, 2019, on our webpage California City & County Sales & Use Tax Rates (scroll down to “Download” for the spreadsheet).

To find the specific tax rate for your area or business location, go to Find a Sales and Use Tax Rate by Address. (Please note: The new rates will not be available here until April 1, 2019.) You can also call our Customer Service Center at 1‑800‑400‑7115 (TTY:711). Customer service representatives are available to assist you Monday through Friday from 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays.

DISTRICT TAX RATE INCREASING
Citywide New Code Acronym Prior Rate New Rate
City of Alameda (located in Alameda County) 648 ALTG 9.250% 9.750%
City of Oroville (located in Butte County) 649 OVTG 7.250% 8.250%
City of Angels Camp
(located in Calaveras County)
650 ACGT 7.250% 7.750%
City of Antioch
(located in Contra Costa County)1
652 ANIT 8.750% 9.250%
City of Martinez
(located in Contra Costa County)
654 MZGT 8.750% 9.250%
City of Coalinga (located in Fresno County) 656 COLG 7.975% 8.975%
City of Fowler (located in Fresno County) 658 FWLG 7.975% 8.975%
City of Kerman (located in Fresno County) 660 KERM 7.975% 8.975%
City of Bakersfield (located in Kern County) 741 BSVG 7.250% 8.250%
City of Burbank
(located in Los Angeles County)
662 BURB 9.500% 10.250%
City of Covina (located in Los Angeles County) 664 COGT 9.500% 10.250%
City of Culver City
(located in Los Angeles County)
666 CULG 10.000% 10.250%
City of Pomona
(located in Los Angeles County)
668 PMAG 9.500% 10.250%
City of La Puente
(located in Los Angeles County)
670 LUPG 9.500% 10.000%
City of Santa Fe Springs
(located in Los Angeles County)
672 SFSG 9.500% 10.500%
City of Glendale
(located in Los Angeles County)
674 GNDG 9.500% 10.250%
City of Lawndale
(located in Los Angeles County)
676 LAWG 9.500% 10.250%
City of Cudahy
(located in Los Angeles County)
678 CDHG 9.500% 10.250%
City of Pasadena
(located in Los Angeles County)
680 PSGD 9.500% 10.250%
City of Chowchilla (located in Madera County) 682 CHCS 7.750% 8.750%
City of Los Banos (located in Merced County) 684 LSBS 8.250% 8.750%
City of King City (located in Monterey County)2 686 KNGG 8.250% 8.750%
City of Marina (located in Monterey County)3 688 MRGT 8.750% 9.250%
City of Placentia (located in Orange County) 690 PLCT 7.750% 8.750%
City of Santa Ana (located in Orange County) 692 SATA 7.750% 9.250%
City of Seal Beach (located in Orange County) 694 SEAL 7.750% 8.750%
City of Garden Grove
(located in Orange County)
696 GGGT 7.750% 8.750%
City of Roseville (located in Placer County) 697 ROSG 7.250% 7.750%
City of Norco (located in Riverside County) 699 NOGT 7.750% 8.750%
City of Murrieta (located in Riverside County) 701 MURG 7.750% 8.750%
City of Wildomar (located in Riverside County) 703 WILG 7.750% 8.750%
City of Sacramento
(located in Sacramento County)4
705 SARG 8.250% 8.750%
City of Barstow
(located in San Bernardino County)
710 BARS 7.750% 8.750%
City of Oceanside
(located in San Diego County)
712 OTGT 7.750% 8.250%
City of Lodi (located in San Joaquin County) 714 LOGT 7.750% 8.250%
City of Redwood City
(located in San Mateo County)
716 REDG 8.750% 9.250%
City of Santa Maria
(located in Santa Barbara County)5
718 SMPG 8.000% 8.750%
City of Carpinteria
(located in Santa Barbara County)
720 CARG 7.750% 9.000%
City of Los Gatos
(located in Santa Clara County)
722 LGTG 9.000% 9.125%
City of Santa Rosa
(located in Sonoma County)6
732 SATG 8.625% 9.000%
City of Porterville (located in Tulare County) 734 PVGT 8.250% 9.250%
City of Port Hueneme
(located in Ventura County)
736 PHEG 7.750% 8.750%
City of West Sacramento
(located in Yolo County)
738 WSGT 8.000% 8.250%
Countywide New Code Acronym Prior Rate New Rate
San Benito County
(This rate applies in all unincorporated areas and in incorporated cities that do not impose a district tax.)
706 SBRT 7.250% 8.250%
City of Hollister 707 8.250% 9.250%
City of San Juan Bautista 708 8.000% 9.000%
Sonoma County
(This rate applies in all unincorporated areas and in incorporated cities that do not impose a district tax.)
744 SCPS 8.125% 8.250%
City of Cotati 726 9.125% 9.250%
City of Healdsburg 727 8.625% 8.750%
City of Rohnert Park 728 8.625% 8.750%
City of Sebastopol 729 8.875% 9.000%
City of Sonoma 730 8.625% 8.750%
City of Santa Rosa6 732 SATG 8.625% 9.000%
Unincorporated Area7 New Code Acronym Prior Rate New Rate
Santa Cruz County Unincorporated Area 724 SCUG 8.500% 9.000%
Yuba County Unincorporated Area8 739 YBUA 7.250% 8.250%
CURRENT DISTRICT TAXES EXTENDED
County/City Code Acronym Tax Rate Expiration Date
Humboldt County 389 HBGT 7.750% Indefinite
Marin County 102 TAMC 8.250% 3/31/2049
Santa Clara County 331 SCCR 9.000% Indefinite
City of Albany (located in Alameda County) 298 ALBG 9.750% Indefinite
Town of Paradise (located in Butte County) 381 PTTG 7.750% 3/31/2031
City of Rio Dell (located in Humboldt County) 390 RDGT 8.750% 12/31/2024
City of San Fernando
(located in Los Angeles County)
347 SNFE 10.000% Indefinite
City of El Monte (located in Los Angeles County) 199 EMGF 10.000% 3/31/2029
City of Monterey (located in Monterey County) 403 MTRS 8.750% 3/31/2027
City of Sebastopol (located in Sonoma County) 344 SBCGS 8.875% Indefinite
City of Red Bluff (located in Tehama County) 424 RDBF 7.500% 3/31/2031

1The city increased its existing tax (ANTG) of 0.50 percent to 1.00 percent (ANIT) and extended the expiration date to March 31, 2039.

2The city increased its existing tax (KING) of 0.50 percent to 1.00 percent (KNGG) and extended the expiration date to March 31, 2029.

3The city approved a new 1.50 percent tax (MRGT) to replace the existing 1.00 percent tax (MRNA) which will expire March 31, 2019.

4The city approved a new 1.00 percent tax (SARG) to replace the existing 0.50 percent tax (SACG) which will expire March 31, 2019.

5The city approved a new 1.00 percent tax (SMPG) to replace the existing 0.25 percent tax (SMAG) which will expire March 31, 2019.

6The city approved a new tax of 0.25 percent (in addition to the Sonoma countywide increase of 0.125 percent listed in the countywide table).

7These new taxes apply in the unincorporated area of the county only. They do not affect the rate that applies in incorporated cities within these counties.

8The Yuba County Unincorporated Area tax is subject to pending litigation. Information regarding this tax will be updated if necessary.

BUREAU OF CANNABIS CONTROL, § 5400. Access to Retailer Premises

Chapter 3. RETAILERS

§ 5400. Access to Retailer Premises

(a) Access to the licensed premises of an A-retailer licensee shall be limited to individuals who
are at least 21 years of age.
(b) Access to the licensed premises of an M-retailer licensee shall be limited to individuals who
are at least 18 years of age and have a valid physician’s recommendation.
(c) If a licensed premises is shared by an A-license and an M-license pursuant to section 5025 of
this division, the licensee may allow persons identified in subsections (a) and (b) above to access
the premises.

IRS urges businesses to e-file cash transaction reports; It’s fast, easy and free

IRS urges businesses to e-file cash transaction reports; It’s fast, easy and free

WASHINGTON — The Internal Revenue Service today urged businesses required to file reports of large cash transactions to take advantage of the speed and convenience of filing these reports electronically.

Although businesses have the option of filing Form 8300, Report of Cash Payments Over $10,000, on paper, many have already found that e-filing is a faster, more convenient and cost-effective way to meet the reporting deadline. The form is due 15 days after a transaction and there’s no charge for the e-file option.

Electronically filing Form 8300 is a secure way for businesses to send sensitive information to the IRS. Although many cash transactions are legitimate, information reported on this form can help stop those who evade taxes, profit from the drug trade and engage in terrorist financing and other criminal activities. The government can often trace money from these illegal activities through the payments reported on this and other cash reporting forms.

Businesses that file Form 8300 electronically get free, automatic acknowledgment of receipt when they file. In addition, electronic filing is more accurate, reducing the need for follow-up correspondence with the IRS.

To file Form 8300 electronically, a business must  set up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System. For more information, interested businesses can call the BSA E-Filing Help Desk at 866-346-9478 or email them at BSAEFilingHelp@fincen.gov. The help desk is available Monday through Friday from 8 a.m. to 6 p.m. Eastern time.

For more informationabout the reporting requirement, see FS-2019-1, available on IRS.gov. Among other things, the fact sheet includes reporting scenarios for specific businesses, such as automobile dealerships, taxi companies, landlords, colleges and universities, homebuilders and bail-bonding agents. It also lists other resources on IRS.gov related to reporting cash transactions of more than $10,000.

BUREAU OF CANNABIS CONTROL, § 5315. Distributor Transport Only License

§ 5315. Distributor Transport Only License

(a) A distributor transport only licensee may transport cannabis goods between licensees;
however, they shall not transport any cannabis goods except for immature plants and seeds to a
retailer or to the retailer portion of a microbusiness.
(b) A complete application for a distributor transport only license shall include all the
information required in an application for a Type 11-Distributor license.
(c) The licensing fee for a distributor transport only license will be based in part upon whether
the licensee intends to transport only cannabis goods that the licensee has cultivated or
manufactured (self-distribution), or whether the licensee intends to transport cannabis goods
cultivated or manufactured by other licensees.
(d) A distributor transport only licensee shall comply with all of the requirements for a holder of
a Type 11-Distributor license, except for those related to quality assurance and testing.
(e) A distributor transport only licensee shall not hold title to any cannabis goods unless the
licensee also holds a state-issued cultivation, manufacturing, retailer, or microbusiness license.
(f) Holding a distributor transport only license shall not authorize a licensee to:
(1) Engage in the delivery of cannabis goods as defined in Business and Professions Code
section 26001(p);
(2) Engage in the wholesale, destruction, packaging, labeling, or storing of cannabis goods; or
(3) Arrange for the testing of cannabis goods by a testing laboratory.
(g) Notwithstanding subsection (e) of this section, a distributor transport only licensee who is
licensed to engage in self-distribution and whose premises will be on the same property as their
licensed cultivation or manufacturing premises shall not be required to comply with the security
provisions contained in Article 5 of this division.

Here’s what taxpayers should do to protect private data

government-1

Here’s what taxpayers should do to protect private data

Taxpayers should protect their personal and financial data from criminals who continue to steal large amounts of information. Thieves use the data to file bogus tax returns and commit crimes while impersonating the victim.

All taxpayers should follow these steps to protect themselves and their data.

Keep a secure computer. Taxpayers should:

  • Use security software that updates automatically. Essential tools for keeping a secure computer include a firewall, virus and malware protection, and file encryption for sensitive data.
  • Treat personal information like cash; don’t leave it lying around.
  • Give personal information only over encrypted and trusted websites.
  • Use strong passwords and protect them.

Avoid Phishing and Malware. Taxpayers should:

  • Not respond to emails, texts or calls that appear to be from the IRS, tax companies and other well-known businesses. Instead, verify contact information about companies or agencies by going directly to their website.
  • Be cautious of email attachments. Think twice before opening them.
  • Turn off the option to automatically download attachments.
  • Download and install software only from known and trusted websites.

Protect personal information. Taxpayers should:

  • Not routinely carry a Social Security card or other documents showing a Social Security number.
  • Not overshare personal information on social media. This includes information about past addresses, a new car, a new home and children.
  • Keep old tax returns and tax records under lock and key.
  • Safeguard electronic files by encrypting and properly disposing them.
  • Shred tax documents before trashing.

Taxpayers should forward IRS-related scam emails to phishing@irs.gov. They can report IRS impersonation telephone calls at www.tigta.gov.

More Information:

  • Identity Protection: Prevention, Detection and Victim Assistance
  • Publication 4524, Security Awareness for Taxpayers
  • Taxes. Security. Together.

BUREAU OF CANNABIS CONTROL, § 5314. Shipping Manifest

§ 5314. Shipping Manifest

(a) Prior to transporting cannabis goods, a distributor shall generate a shipping manifest through
the track and trace system for the following activities:
(1) Testing and sampling;
(2) Sale of cannabis goods to a licensee;
(3) Destruction or disposal of cannabis goods; and
(4) Any other activity, as required pursuant to this division, or by any other licensing authority.
(b) The distributor shall transmit the shipping manifest to the Bureau and the licensee that will
receive the cannabis goods prior to transporting the cannabis goods.
(c) The distributor shall ensure and verify that the cannabis goods being taken into possession for
transport at the originating licensed premises are as described and accurately reflected in the
shipping manifest. For purposes of this section, the distributor may verify that the cannabis
goods are accurately reflected in the shipping manifest by confirming that the number of boxes
of cannabis goods, type of cannabis goods, weight or units of cannabis goods matches the label
on the boxes containing the cannabis goods.
(1) The distributor shall not take into possession or transport:
(A) Any cannabis goods that are not on the shipping manifest; or
(B) Any cannabis goods that are less than or greater than the amount reflected on the shipping
manifest.
(2) The distributor is responsible for any discrepancies between the shipping manifest and the
cannabis goods in its possession during transport, and subject to any enforcement or disciplinary
action related to such discrepancy.
(3) A distributor shall not void or change a shipping manifest after departing from the originating
licensed premises.
(d) A shipping manifest shall accompany every transport of cannabis goods.
(e) Notwithstanding subsection (a) of this section, if a transporting distributor has not obtained
access to the track and trace system, the distributor shall complete the shipping manifest outside
of the track and trace system and transmit it to the Bureau and the licensee receiving the
shipment by electronic mail.
(f) If the transporting distributor has access to the track and trace system and the licensee
receiving the shipment has not obtained access to the track and trace system, the distributor shall
complete the shipping manifest in the track and trace system and transmit it to the Bureau.
However, the distributor shall send a copy to the licensee receiving the shipment by electronic
mail.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067 and
26070, Business and Professions Code

EITC provides tax break for low to moderate income taxpayers

EITC provides tax break for low to moderate income taxpayers

The earned income tax credit benefits low to moderate income people and families. The credit can lower the tax someone owes or mean a refund for the taxpayer.

Taxpayers can do these things to determine if they qualify for the EITC and make claiming it easier:

Review their eligibility

  • Taxpayers must have earned income of $54,884 or less.
  • Taxpayers must file a federal tax return claiming the credit even if no tax is due and filing a return is not otherwise required.
  • Even if they didn’t qualify for the EITC in the past, filers should review EITC eligibility if their household income or family situation has changed.

Learn the EITC rules

  • Taxpayers who are married and file a separate return don’t qualify for the EITC.
  • Filers must have a valid Social Security number for themselves, their spouse and any qualifying child listed on their tax return.
  • Taxpayers must have earned income. This includes money they earn from working as an employee or being self-employed.
  • Filers may be married or single.
  • Taxpayers can be with or without qualifying children.
  • A child must have lived with the taxpayer for more than six months in 2018.
  • The child must meet the age, residency, relationship and joint return rule.
  • Filers who don’t have children must also meet the age, residency and dependency rules.
  • Members of the U.S. military serving in a combat zone have special rules that may apply.

Find free services to help claim the credit

  • Those who do their own taxes can use IRS Free File to claim EITC. Free brand-name software will figure out taxes and the credit automatically.
  • IRS volunteer programs offer free tax help at thousands of sites around the country.

Know when to expect their refund

  • By law, if a taxpayer claims either the EITC, the IRS can’t issue the refund before mid-February.
  • This applies to the entire refund, even the portion not associated with these credits.
  • The IRS expects the earliest of these refunds to be available in taxpayer bank accounts or on debit cards starting on February 27, 2019. This is if the taxpayer chose direct deposit and there are no other issues with the tax return.
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