AB 672, as amended, Harkey. Tax administration: tax clearance certificates.
Existing law requires, for specified estates, a tax clearance certificate issued by the Franchise Tax Board certifying that all taxes have been paid or secured as required by law, before a probate court allows the final account of the fiduciary.begin insert Existing law prohibits a deduction from being allowed for amounts attributable and taxable to nonresident beneficiaries if the fiduciary fails to obtain a tax clearance certificate, as specified.end insert
This bill would eliminate the tax clearance certificate requirementbegin insert related to the final account of the fiduciaryend insert and related provisions.begin insert This bill would also eliminate the tax clearance certificate requirement related to that deduction for taxable years beginning on or after January 1, 2014.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17735 of the Revenue and Taxation Code
2 is repealed.
begin insertSection 17735 of the end insertbegin insertRevenue and Taxation Codeend insert
4begin insert is amended to read:end insert
begin insert(a)end insertbegin insert end insert In the case of an estate,begin insert for taxable years beginning
6before January 1, 2014,end insert no deductions shall be allowed under
7Section 661(a) of the Internal Revenue Code with respect to
8amounts attributable and taxable to nonresident beneficiaries if
9the fiduciarybegin delete failsend deletebegin insert failedend insert to obtain
a certificate as provided by
10begin insert
formerend insert Section 19513.
11(b) This section shall remain in effect only until December 1,
122018, and as of that date is repealed.
Section 19513 of the Revenue and Taxation Code is
14repealed.
Section 19514 of the Revenue and Taxation Code is
16repealed.
Section 19515 of the Revenue and Taxation Code is
18repealed.
Section 19591 of the Revenue and Taxation Code is
20amended to read:
(a) Specialized tax services fees shall be imposed upon
22the following services provided by the board:
23(1) Installment payment programs.
24(2) Expedited services for:
25(A) Corporation revivor requests.
26(B) Tax-exempt status requests.
27(C) Limited partnership revival confirmation letter requests.
28(b) (1) For periods on or after the effective date of this section
29and
prior to January 1, 2006, the Franchise Tax Board shall publish
30by notice a schedule of specialized tax services fees to be imposed,
31which notice shall be exempt from the requirements of Chapter
323.5 (commencing with Section 11340) of Part 1 of Division 3 of
33
Title 2 of the Government Code. The amounts of these fees under
34this paragraph shall be calculated in the same general manner as
35required under paragraph (2).
36(2) Commencing on January 1, 2006, the amount of the
37specialized tax services fees shall be established by the board
38through regulations adopted pursuant to Chapter 3.5 (commencing
39with Section 11340) of Part 1 of Division 3 of Title 2 of the
40Government Code, and shall be established in the manner and in
P3 1the amounts necessary to reimburse the board for the costs of
2administering the specialized services, including the board’s direct
3and indirect costs for providing specialized tax services.
4(3) For periods on or after the effective date of this section, and
5prior to January 1, 2011, the amount of the specialized
tax service
6fee for limited partnership revival confirmation letter requests shall
7be one hundred dollars ($100). Commencing on January 1, 2011,
8the specialized tax service fee for limited partnership revival
9confirmation letter requests shall be calculated in the same general
10manner as required under paragraph (2).
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