Current Advocacy Issues

What's going on in Advocacy?

DISASTER RELIEF 

Disaster relief is creating confusion with the numerous releases from IRS and FTB.  Here is a quick reference for all we know. DISASTER RELIEF   Updated 3/8/2023 (now includes Kern, Lassen and Plumas counties under IRS CA-2023-01).

Disaster Tax Relief for Modoc County

Modoc County joins the list of federally declared disaster areas, following the recent . Individuals who reside or have a business in Modoc County and were affected by the severe winter storms that began on February 21 now have until August 15, 2023 to file and pay taxes. This county had not been included in any prior FEMA disaster declarations.

The relief includes 2022 individual income tax returns, various business returns due on March 15 and April 18, and any payment normally due during this period. It also includes the quarterly estimated tax payments normally due on April 18 and June 15, and the quarterly payroll and excise tax returns normally due on May 1 and July 31. Get additional details from IRS news release .

While FTB generally conforms to the IRS, it has not yet released an announcement on this matter.


DISASTER TAX RELIEF
Update 3/23/23:  Only 3 counties in CA do NOT qualify for the extension to file/pay:  Lassen, Modoc, and Shasta. 

It's easy to be confused about deadlines, extensions, affected taxpayers, counties with federal and state tax agencies having some variations on the relief available.  CSEA has put together this guide to give you a resource in one place.  Just click on Disaster Relief below.
 DISASTER RELIEF    NOTE: Updated 3/8/2023 (includes Kern, Lassen, and Plumas counties in IRS list under CA-2023-01).  

Per IRS no interest will accrue on payments made by the extension deadline of October 16, 2023.  Read more here:  IRS Interest and Pension Information    Thank you to Jane Ryder, EA, CPA for this great information.

Affected or Not?

Still confused about disaster tax relief, extensions, payments?  Who is affected? The extension to October 16, 2023 for filing and making payments applies to individuals and businesses in the counties identified by the FTB on its website at: Emergency tax relief.  If a taxpayer lives or has a business in one of the 51 counties identified, they are eligible for the extension to file and pay.  These folks are generally referred to as “affected taxpayers.” 

Taxpayers who were directly impacted by the storms, and had damage as a result, are also considered affected, however the difference is these affected taxpayers may be able to claim disaster losses.  The FTB website has a list of disasters with disaster codes to use when claiming a disaster loss.  The FTB TPA expects that table to be updated to include Tuolumne County with a disaster code of 141. 

As always, check the FTB website for updates on this information.


 

The Value of Checking FTB Wait Times 

7/28/2023 
   One of the useful tools on the FTB website is the Wait Times page. This page includes a lot of information that can help manage your clients’ expectations or help you plan when to contact FTB.
   

The Long and Winding Road of Advocacy 

7/14/2023 
   Read how 2019-2020 CSEA President and long-time legislative affairs enthusiast Joyce Cheng, EA helped to implement longer holding period for EDD bank levies.
   

NAEA Testifies Against Enrolled Agent User Fee Increases 

5/20/2022 
   NAEA testified against proposed increases to Enrolled Agent user fees during a May 11 hearing, which was held via teleconference before the IRS and the Treasury.
   

EAs Discuss SALT Tax Workaround and Conformity at 2022 Stern-Mulak Advocacy Week 

1/21/2022 
   CSEA has successfully completed another Stern/Mulak Advocacy Week, which took place in lieu of the typical Legislative Day held at the State Capitol.
   

Two-Thirds of Californians to Receive Golden State Stimulus Payments 

7/16/2021 
   Under the second stimulus package approved by Governor Newsom on Monday, roughly two-thirds of Californians can expect a $600 payment, thanks to the second phase of the Golden State Stimulus.
   

California Budget Trailer Bills Include Important Tax Provisions 

7/2/2021 
   On June 28, Governor Newsom and California legislators announced an agreement on a new 2021-2022 budget. Included in the agreement are a number of trailer bills that contain several major tax-related items.
   

Governor Newsom Signs Paycheck Protection Program Conformity Bill 

5/4/2021 
   Governor Newsom has signed AB 80, bringing California into partial conformity with federal law.
   

PPP Conformity Bill Amended 

4/19/2021 
   AB 80 was been on April 15 to a remove a provision that placed a $150,000 cap on the amount of business expenses paid for using forgiven PPP or EIDL funds that a California business can deduct.
   

Treasury Department Releases Important PPP Conformity Directive 

4/12/2021 
   The Department of the Treasury has released a long-awaited directive that will allow the California Legislature to move forward with their PPP conformity bill, AB 80.
   

CSEA Submits Letter of Support for SALT Workaround Bill 

4/5/2021 
   This week, we submitted a letter of support for SB 104 (McGuire), a bill that will help California small business owners who have been negatively impacted by TCJA’s cap on state and local tax (SALT) deductions.