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A business no longer needs to be dissolved before year-end to stop the next year’s $800 tax from accruing. California’s rules for ending the $800 annual franchise tax have changed, and dissolving entities can now avoid unnecessary payments if the correct steps are followed. A business no longer needs to be dissolved before year-end to stop the next year’s $800 tax from accruing; however, tax planning during dissolution is still essential. Avoiding the $800 Tax After the Final

C Corporations For many business owners, choosing a business entity is one of the most important financial decisions they’ll ever make. A C corporation (“C-corp”) can offer exceptional advantages: strong liability protection, the best fringe benefit options in the tax code, and opportunities like the Qualified Small Business Stock (QSBS) exclusion that can save millions in taxes. But C-corps also come with risks. They face double taxation, increased scrutiny from the IRS, and

Changing Your Business Structure Most business owners reach a point where their original business structure no longer fits where the company is headed. Maybe revenue has grown, you’re hiring people, you’re thinking about retirement, or you’re preparing to sell. Whatever the reason, changing your business entity is more than a paperwork decision—it affects taxes, liability, benefits, and long-term strategy. This article explains what actually happens when you switch from an LL

California Conformity Update: New Rules, Ongoing Non-Conformity For years, California’s conformity to federal law has been spotty at best. This continues to be the case even with California’s recent enactment of SB-711 , the bill that updated California’s specified conformity date from January 1, 2015 to January 1, 2025. In theory, this would mean that California would automatically incorporate all tax changes enacted at the federal level over the last 10 years. But that is n

Exemption, waiver, and withholding reductions requests available. We are going to review the five forms available to request exemptions, waivers, and reductions on non-wage withholding required for both residents and non-residents. In this article, we will review the following California non-wage withholding requirements: Form 590, Withholding Exemption Certificate; Form 590P, Non-Resident Withholding Exemption Certificate for Previously Reported Income ; Form 587 , Non-Re

By Angelo Liberati, BBA, CPA, MST Section 83(b) Election As amended, §83(b) of the Internal Revenue Code of 1986 provides a valuable tax election for individuals who receive restricted stock or other equity compensation, such as restricted stock or nonqualified stock options (NSOs) upon vesting. This choice considers the value of the equity received versus its value when recognized after vesting. To qualify, the equity compensation must have a “substantial risk of forfeitur

IRS Enhances Taxpayer Rights In March 2025, the House passed H.R. 998 , also known as the Internal Revenue Service Math and Taxpayer Help Act . The Senate has since followed, and the bipartisan bill now awaits the president’s signature. This legislation directly addresses long-standing taxpayer frustrations with how the IRS issues and manages “math error” notices —automated corrections to tax returns that can result in unexpected balance due notices or refund changes without

California Expands Retirement Contribution Deductions California has taken a major step toward federal tax conformity with the passage of SB 711 , updating the state’s conformity date from January 1, 2015, to January 1, 2025 . This long-awaited change brings California in line with several Secure Act and Secure 2.0 Act provisions that expand deductions for retirement contributions. Key Conformity Changes Starting in 2025 "California Expands Retirement Contribution Deduction

California Updates CPA Licensing Rules We’re covering two major professional regulation changes — new CPA licensing requirements and expanded exemptions from California Tax Education Council ( CTEC ) registration. Both measures were enacted through AB 1175 and SB 788 , and they mark significant shifts for accounting and tax professionals across the state. Easier Path to CPA Licensure Under AB 1175 Beginning January 1, 2027 , new CPA applicants in California will have the opt

California Conformity to Federal Law California has enacted SB 711 , updating its conformity date to January 1, 2025 , and partially aligning state law with the federal Tax Cuts and Jobs Act (TCJA) . Beginning with the 2025 tax year , California will adopt the TCJA treatment of alimony—but only for certain taxpayers. New Rules for Post-2025 Divorce and Separation Agreements Under SB 711, alimony payments will be non-deductible for the payor and excluded from the payee’s i

The Generational Tax Series Taxes don’t look the same for everyone — every generation faces unique challenges, opportunities, and priorities. That’s why I’m launching a new series breaking down what kind of tax planning and preparation matters most for: The Generational Tax Series: Baby Boomers: Retirement income, RMDs, and Social Security taxation - Click Here Gen X: College costs, home equity, and wealth preservation Click Here Millennials: Gig work, housing, and growi

Today, many boomers have built successful careers, raised families and shaped modern society. Social Security taxation, required minimum distributions (RMDs) and Roth conversions Born between 1946 and 1964 (current age 61 to 79), baby boomers, often called boomers, represent the post–World War II generation, characterized by a dramatic rise in birth rates in the United States and elsewhere. Today, many boomers have built successful careers, raised families and shaped modern s

Filing Separately in 2025 (MFS) Choosing a filing status can significantly affect a taxpayer’s overall tax liability, eligibility for credits and deductions and compliance complexity. The decision to file jointly or separately carries weighty implications for married individuals. While the married filing separately (MFS) status is sometimes necessary due to legal, financial or personal reasons, it comes with potential tax code limitations and disadvantages. This article outli

Identity protection PIN (IP PIN) Identity theft in the tax world can feel like a nightmare. Imagine filing your return only to learn someone else has already used your Social Security number. That’s where the IRS identity protection PIN, better known as the IP PIN, comes in. This simple six-digit code is one of the best defenses against tax-related identity theft, and it’s available to any taxpayer who wants an extra layer of security. If you haven’t considered getting one be

Discovering that someone filed a return in your name is stressful—but you’re not alone. Identity theft is on the rise, and more taxpayers are finding out someone else has already filed a tax return using their information. If your e-file was rejected or you received an unexpected IRS notice , you may be a victim of tax-related identity theft. Understanding what to do—and how to request a copy of the fraudulent return—can help you move forward quickly and with confidence. Quic

To make sure you get every credit you’re entitled to, I just need to confirm your DHS work authorization is still valid The new One Big Beautiful Bill Act of 2025 (OBBBA) brings major changes for immigrant taxpayers—and new risks for tax professionals who fail to verify client identity and authorization. Beginning with 2025 returns, certain clients will have to present both their Social Security number (SSN) and valid DHS work authorization if they want to receive key tax

California AB 116 Overview Effective January 1, 2026, AB 116 reinstates the Medi-Cal program asset test of $130,000 per individual ...

Draft 2026 Forms W-4 a The IRS has issued a draft version of the 2026 Form W-4, Employee’s Withholding Certificate , reflecting major...

Oct. 15 Is the Final Deadline for Extension Filers October 2025 If you filed for a federal tax extension earlier this year, Wednesday,...

IRS Releases Updated Contingency Plan As of today, October 8, 2025, the Internal Revenue Service has begun implementing its Lapsed...