New California Use Tax Registration Required for Small Businesses

The California State Board of Equalization (BOE), pursuant to newly added Section 6225 of the Revenue and Taxation Code, is now requiring “qualified purchasers” to register with the Board of Equalization (BOE).  In an effort to collect sales and use tax on internet and out of state purchases, this seems to be another effort by the state government to raise revenue to deal with the budget deficit.

In general, persons or businesses that collect at least $100,000 in gross receipts per calendar year and are not otherwise already registered with the BOE, must register as a “qualified purchaser”.  Additionally, qualified purchasers must then file a return and pay the associated tax for the 2009 calendar year by April 15, 2010.  Additionally, the BOE is requesting these individuals and businesses report and pay tax on purchases from 2007 and 2008 as well, which were due by January 31st of the following years, and is not offering any abatement of related penalties and interest.

The BOE has started sending registration forms and an explanatory letter to businesses throughout the state.  Following is a link to the notice and application recently received by Nienow & Company, LLP:

http://img202.imageshack.us/img202/1260/im451020091025113908.pdf

Please contact us if you would like assistance with registration under this plan.

Filed under: State Taxes, Tax

Everything You Need to Know Regarding Out of State Licensing

Over the past few years, there has been a lot uncertainty in the CPA profession regarding the privelege of doing business in other states.  “If I prepare a non-resident return for one of my clients in Illinois, am I going to be in trouble?”  These kinds of questions have haunted us since the California fired the first salvo, soliciting a response from many of the states requiring various different licensing levels for various different levels of service.

 Art Berkowitz has taken it upon himself to monitor the situation at his blog here.  Although there has not been much posted lately on the subject, the year-end should bring updates, so bookmarking this site may be a good idea.  His site includes a link to an excel spreadsheet he has created which lists all 50 states, and has links to their accountancy governing boards and what their current out of state licensing requirements are.

Filed under: Licensing, State Taxes , Licensing, State Taxes

All 50 State Tax Rates in One Place

This great site contains a simple one page listing of the 2007 income tax rates in all 50 states.  No doubt there is further research needed to fully understand tax brackets, standard deductions and exemptions, but to get a quick idea of how income would be taxed in another state, this is a very hand resource.

 This is a worthy bookmark.

Filed under: Free Online Tax Resources, State Taxes , Free Online Tax Resources, State Taxes

Quick Access to All 50 States Departments of Taxation and Revenue

These days, we all have at least some exposure to filing tax returns in states other than our home state. With the increase in multi-state filing comes the need to contact the revenue departments of other states to ask question or maybe follow up on refunds. Finding the contact information for those can be burdensome. Bookmark this link. Here you will find a quick listing of the taxation and revenue departments for all 50 states.

Filed under: Free Online Tax Resources, State Taxes , Free Online Tax Resources, State Taxes