Lee B

Oregon has had a similar program for about 4 years now called Oregon Saves. While it's a laudable idea it ignores reality. 1. Most working class families live paycheck to paycheck and don't have any extra money. 2. Most small employers are just trying to survive so they ignore the Oregon Saves program. 3. There's no enforcement so there' s no penalty for not participating.

No

Which is why, if at all possible ,I never wanted my clients present during any audit no matter what kind, Income Tax, Workers Comp, Employment Tax or Liability Insurance.

The number of states with a PTET is over 25 now. Here is a link to a recent analysis of the situation in The Tax Advisor: https://www.thetaxadviser.com/issues/2022/aug/state-pte-elections.html

Maybe the auditor is fishing to see what pops up?

Thanks, I didn't know that. It's been quite a few years since I had a client that didn't stay current with their tax payments.

This alert applies to all of the Chromium Browsers i.e., Chrome, Edge, Brave, Vivaldi and Opera. Chrome included a complete fix as part of yesterday's release of Chrome 108.

No problems but I haven't done much yet, Just finished all of my year end payroll stuff.

The daughter is apparently over 18 and now an adult. You're going to need the daughter's consent and involvement.

"If an apportioning trade or business is (1) operating as a sole proprietorship owned by a nonresident individual or (2) operating as a single-member disregarded LLC owned by a nonresident individual and therefore treated as a sole proprietorship, for income arising from activities that occur both within and outside California, the single-sales factor formula must be used to determine the California source income of the individual on Schedule R-1. For more information, see Cal. Code Regs., tit. 18 section 17951-4(c)(2). Nonresident individuals with service or intangible income from a trade or business or profession may have California source income if they have income from California as result of market assignment. See market assignment information in the General Information section, Specific Line Instructions, R&TC Section 25136, and Cal. Code Regs., tit. 18 section 25136-2, for more information." This relates to a Corporation, which is a horse of a different color.

If the IRS issued the refund how did the state take it?

There are different kinds of nexus. The one that your first post referenced is payroll related. The one most people are familiar with is sales tax nexus, which has undergone major changes in the last three years. Then there is corporate tax nexus with the apportionment factors. Finally we have state income tax nexus which we have been discussing on this thread.

Here is a lengthy analysis of the state income tax nexus situation in The Tax Advisor, dated December 1, 2022: https://www.thetaxadviser.com/issues/2022/dec/states-reactions-to-mtc-application-pl-86-272-to-internet-sales.html

In recent years, I have prepared tax returns for CA, IA, ID, MT and UT. As far as I know I will only be preparing Oregon Tax Returns this year and I plan to keep it that way.

I would also be concerned about whether your client obtained a PPP Loan during the same time frame or any of the other pandemic payroll related credits, because you can't use the same payroll dollars twice and double dip.

California is pushing the nexus boundaries to the breaking point. It's way beyond whether you have a resident employee. Just read FTB Pub 1050, it's a real eyeopener!

Yes, I still receive mail and email from the FTB even though it's been 3 or 4 years since I last filed a CA Tax Return.

I responded to a CP 2000 13 months ago. I have received 2 letters from the IRS saying they needed more time. Still waiting. Another accountant here in Oregon mailed a reply back in May 2021. Her correspondence was opened and recorded in November 2021. So far she has received 4 letters from the IRS saying they needed more time. Don't even know what to say.

Abby, your friend's consulting does not appear to be a "protected activity'. My preliminary reading is that she would have to register.

Tom, your original post triggered me to find out if anything had changed since the last time I looked into this issue. :)

I found the applicable information in FTB Pub 1050: https://www.ftb.ca.gov/forms/misc/1050.pdf Based on my reading I believe my client's shipping of Roasted Coffee to customers in CA still meets the definition of "protected activity" under Public Law (PL) 86-272, 15 U.S.C. §§381-384, which Congress adopted in 1959. "PL 86-272 prohibits a state from imposing a net income tax on the income of a person derived within the state from interstate commerce if the only business activities within the state conducted by or on behalf of the person consist of the solicitation of orders for sales of tangible personal property." Abby, this Pub has a lengthy list of protected and unprotected online activities.

I have a S Corporation client who is a Coffee Roaster/Wholesaler. They have customers in California to whom they ship Roasted Coffee every week. In the past that has not created a California Nexus. What changed and when was the effective date. I would appreciate a link to the applicable part of the FTB website. Also, have you noticed any commentary and analysis? Thanks in advance, Lee

"If a taxpayer makes a charitable contribution of cryptocurrency valued at more than $5,000, a qualified appraisal is required the IRS held in Chief Counsel Advice 202302012.[1] The IRS finds that cryptocurrency fails to fall into any category of property exempted from the qualified appraisal rules of §170(f)(11)(C)." It doesn't get any easier, does it?

I had to call BSO technical support. I got through right away. The support person was helpful, then I was able to log in and start uploading my clients W 2s.

I wouldn't go as far as keeping the payroll software back that many years. However I would keep the following for each client/year: 1. Payroll Check History Detail 2. Quarterly Payroll Reports 3. Annual payroll reports My past experience trying to keep that many years of ATX Software up and running was definitely an exercise in frustration! However, I currently have 5 years of Drake currently up and running with zero problems