State postpones deadlines for filing tax protests, appeals, and refund claims
The Franchise Tax Board issued Notice- 2020-02 detailing the new deadlines to file:
Claims for refunds with FTB
Protests of proposed tax assessments with FTB
Appeals to the Office of Tax Appeals of Notices of Action denying claims for refund or affirming tax assessments
COVID-19 Economic impact payments - CARES Act
We recently updated our COVID-19 FAQ Page with the following information regarding the taxability of the economic impact payments, treatment of NOLs, and early withdrawal waiver penalties.
Are the payments that individuals receive from the federal government (i.e., $1,200 [$2,400 for individuals filing a joint return] and $500 per qualifying child) under the recently enacted federal CARES Act subject to California income tax?
No, these payments are not subject to California income tax.
Is the emergency increase in unemployment compensation benefits (in the amount of $600 per week) that individuals receive under the recently enacted federal CARES Act subject to California income tax?
No, these payments are not subject to California income tax.
Are the modifications for net operating losses (NOLs) in the recently enacted federal CARES Act applicable for California income and franchise tax purposes?
No, these modifications for NOLs do not apply for California income and franchise tax purposes.
Does California conform to the federal early withdrawal penalty waivers for distributions from qualified retirement accounts under the recently enacted federal CARES Act?
Yes, the federal early withdrawal penalty waivers for distributions from qualified retirement accounts under the federal CARES Act also applies for California income tax purposes.
If you have suggestions or comments, send us an email to:taxnews@ftb.ca.gov