California ~ Corporate, Personal Income Taxes: FTB Authorized to Communicate With Taxpayers by Electronic Means

Legislation authorizes the Franchise Tax Board (FTB) to adopt regulations that would allow taxpayers to elect to use electronic means to communicate with the FTB for California personal income and corporation franchise and income tax purposes.

The taxpayer or the taxpayer’s authorized representative may request that the FTB provide notification to the taxpayer in a preferred electronic communication method designated by the taxpayer that a notice, statement, bill, or other communication related to personal income or corporation franchise or income taxes is available for viewing in the taxpayer’s limited access secure folder on the FTB’s Web site. Taxpayers would also be allowed to file a protest, notification, and other communication with the FTB in a secure manner. Prior to obtaining the consent of a taxpayer to participate in the alternative communication method, the FTB must advise the taxpayer of the ramifications of electing to receive FTB notifications in the manner selected and of failing to take appropriate action in response to one or more of those notifications.

Notwithstanding any other law regarding the use of the U.S. mail, any notice, statement, bill, protest, and other communication between the FTB and a taxpayer using an alternative communication method will be treated as if it were mailed. The provision authorizing the use of alternative communication method will cease to be operative with respect to a notice, statement, bill, protest, or other communication between the FTB and a taxpayer after 2017. However, any notice, statement, bill, protest, or other communication between the FTB and the taxpayer using the alternative communication method prior to 2018 will still remain valid.

Ch. 136 (A.B. 2177), Laws 2010, effective January 1, 2011

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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