Tax News

CCH (cch.taxgroup.com) reports:

  The California State Board of Equalization (SBE) has announced that it will begin transitioning existing sales and use taxpayers to electronic filing and eliminate the use of paper tax returns for most taxpayers.

  In July 2008, more than 90,000 taxpayers will be notified they will no longer be receiving paper returns from the SBE, but rather they will be expected to file online. The first group of existing taxpayers transitioning to e-filing includes single location quarterly prepayment accounts that are comprised of medium to large size businesses that file and make prepayments 12 times per year. These taxpayers will be expected to e-file rather than use a paper return with the reporting of third quarter 2008 returns, due October 31.

  In addition to existing accounts, beginning July 1, 2008, all new businesses that apply for a seller's permit will be set up for e-filing. There are an estimated 165,000 new seller's permits issued each year.

  Over the next two years, the majority of existing sales and use tax accounts will be transitioned from paper to e-filing, phased in based on account type and reporting basis. All businesses will receive SBE e-file notices in their next quarterly tax returns, expected around July 1, 2008. Taxpayers may request a one-year exemption from online filing.

  There are several e-filing options available on the SBE Web site at
www.boe.ca.gov. The SBE offers a free option, BOE-file. In addition, taxpayers may also choose from two fee-based electronic service providers. Accountants, bookkeepers, and other third-party return preparers can e-file on behalf of the taxpayer as well.

  Subscribers to CCH Tax Research NetWork can view the release.

News Release 46-08-C, California State Board of Equalization, June 27, 2008.