CA NR Sole Proprietor Income - Spidell CA Minute

[BulldogTom]

https://go.spidell.com/e/837113/ellpublishing-SCM-05-14-23-mp3/5v69lx/1493174511?h=Uz1dPLaqv038i0ytdEaOrGEVqizKc5zWaPMIrY6Ucy4

Not sure if I did this link correctly.   Towards the end of this 5 minute audio, an accountant was held to owe penalties for failure to know the CA requirements.   

FTB is looking at the 1099s from clients to their Sole Proprietor accountants in other states to see if they are filing NR returns.

Tom
Longview, TX

[Lee B]

California supposedly has a big projected budget shortfall.

They will be looking under every rock for more revenue.

[Medlin Software, Dennis]

Such as a web site with an email or chat link creating nexus. The key is the profit possible, cost of investigating, and odds of collection. It seems like it is the same as a low dollar warrant. Unless big enough, they will not try to extradite. But if the process is automated (ala spam) there is a fair chance enough will choose to pay to make it profitable. 

[joanmcq]

Since prepared tax returns list the address of the firm preparing it, going after out of state tax preparers is low hanging fruit. 

I always celebrate whenever one of my clients moves out of CA.

[BulldogTom]

15 hours ago, joanmcq said:

Since prepared tax returns list the address of the firm preparing it, going after out of state tax preparers is low hanging fruit. 

I always celebrate whenever one of my clients moves out of CA.

Out of state preparer penalties will also be low hanging fruit for the FTB.   You must know all the CA rules, including those that apply to you.   

Adding penalties to the tax bill of out of state accountants (who don't vote in CA) may make the collections worth the effort.

Tom
Longview, TX