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Recent Franchise Tax questions

My tax preparer is trying to file my CA Forms 568

Hi, my tax preparer is trying to file my CA Forms 568 electronically for the first time. His system is not allowing him to submit one of them (let's call it LLC-B) because he's already submitted one with the same FEIN (let's call it LLC-A). We formed LLC-A in 2003 to hold title to a rental property, did a 1031 exchange to a TIC fractional interest, the TIC sponsor formed LLC-B for us to hold title to the fractional interest, and LLC-A as the exchangor became the member of LLC-B. We were informed when we asked the sponsor about an FEIN that LLC-B was not required to have its own FEIN. My tax preparer has been using LLC-A's FEIN on both LLC-A's and LLC-B's paper forms 568 since 2006 without a problem, but now the software for electronic filing is kicking out LLC-B's return saying he already used the FEIN. What do you think? Should he try using my SSN since all entites are disregarded? (I'm trustee of our revocable trust (disregarded--has its own FEIN), trust is single member of LLC-A, LLC-A is single member of LLC-B.) Please advise

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Dr. Fiona Chen

President

Ph.D.

578 satisfied customers
Bank account was frozen and money removed from the account

The State of Texas has frozen a bank account of mine and removed some of the money from the account. I was, but not am a citizen of the State of Texas and I never received any notice from the state. Is it legal for the State of Texas to take such action and my that action be reversed? I have not lived in Texas for over 2 years. I now live in Tennessee. Does Texas still have any jurisdiction? And, I have not conducted business in Texas for years, and own no taxes as far as I know.

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Mark Taylor

Certified Public Accountant

Masters

1,296 satisfied customers
I am and EA doing the final return of an S Corp. The owner

I am and EA doing the final return of an S Corp. The owner basically shut down the whole thing. He did not do anything official to end it. but it is no longer operating. I did the 1120S for 2015 and checked the box final return. In the CA corp return, I got an error mesage and I put down the corporation dissolved as of 12/31/15. Error message disappeared. The client will have to pay his S corp fee for 2015. Is this all I need to do? The client no longer plans to do any Corporate work and has not done any in 2016. Am I missing anything here? Is there some other STEP client must do to kill corp as of 12/31/15. It was a one man corp and he was beyond retirement age. Tax wise, is there any problems with my handling?

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Dr. Fiona Chen

President

Ph.D.

578 satisfied customers
I'm in California and my employer received a Demand to

I'm in California and my employer received a Demand to Furnish letter for information about me. Will you tell me what I can do to stop any garnishment?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,236 satisfied customers
I live in California, and I'm selling a condo for $650,000,

Hello, I live in California, and I'm selling a condo for $650,000, which I lived in for two of the last five years. The last 2 1/2 years I have rented the condo. I will have capital gains of about $300,000. does the state of California require me to withhold California State tax of 3 1/3% of the sale price or the capital gain?

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Dr. Fiona Chen

President

Ph.D.

578 satisfied customers
If i pay the notice of estimate assessment for my foreign

If i pay the notice of estimate assessment for my foreign franchise tax and corp income tax, do i still have to file my tax for that tax year?

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Mark Taylor

Certified Public Accountant

Masters

1,296 satisfied customers
On a sale of California real estate, $11K in franchise tax

On a sale of California real estate, $11K in franchise tax was deducted from the proceeds. Can this $11K in taxes be deducted as a selling cost on the 4797 - or should it be included as an income tax deduction on Schedule A?

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Robin D.

Vocational, Technical or Trade School

21,234 satisfied customers
I am a sub s company that was registered to do business in

I am a sub s company that was registered to do business in California. A final tax return was filed and clearly markedsurrender, however a certificate of surrender was not filed with the secretary of state.No further business was conductedin the state since the final return was filed. Now the state is claiming all past tax returns must be filed with filing feesand penalties due. What cure remedies do I have.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,026 satisfied customers
I have a client who left CA in April 2012 and is being

I have a client who left CA in April 2012 and is being assessed taxes plus interest,collection fees and ;penalties on a 1099 income.. He was out of state when many of the payments were received in his new home in Texas. The added costs are almost as great as the original tax.. CA FTB is threatening to file a lien or levy. My client did not realize he had any tax liability to CA. The Payer is from Calif. Do I simply take the amount he was paid when in CA and file a CA return pay tax based on that? No CA return was filed, as client only had this small CA income. How much CA 1099 income must he make to be subject to CA tax.? Any ideas or tips?

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Barbara

Enrolled Agent, Paralegal

5,154 satisfied customers
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