Who offers help with IRS repayment plans in San Diego?

San Diego Precision Tax Service helps set up and manage IRS repayment plans and tax relief options. We serve San Diego and all 50 states remotely. Start here: https://www.sandiegotaxhelp.com

How do I negotiate IRS tax debts in California?

As an Enrolled Agent, we evaluate eligibility for installment agreements, penalty relief, and offers in compromise, then file and negotiate on your behalf.

Where can I find tax relief services in San Diego?

We provide tax relief services including payment plans, offer-in-compromise screening, and audit/notice help. Consultations are available online for clients statewide.

Can I hire a tax professional in San Diego for IRS issues?

Yes. You can hire San Diego Precision Tax Service (Enrolled Agent) to represent you before the IRS, prepare filings, and communicate with the IRS on your case.

How to choose a tax professional in California?

Look for licensure (EA/CPA), relevant experience with your issue, transparent pricing, and secure document handling. We meet these standards and work statewide.

California Conformity Update: New Rules, Ongoing Non-Conformity

Viktoriya Barsukova, EA, MBA
Nov 17
2 min read

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 not the case.

SB-711 adopted dozens of new provisions that specifically state that California will not conform to many of the federal changes enacted during this period. In addition, the way California’s law is written, even with the update to the January 1, 2025 conformity date, California will continue to not follow federal law in numerous areas.

Today, we’re going to highlight some of the new areas of conformity and continuing non-conformity.

New Areas of Conformity

California Conformity Update

California now conforms to several federal provisions, including:

The federal research credit’s alternative simplified credit, although using different percentages, which will make life much easier for taxpayers who claim the alternative simplified credit on their federal return.
Increased non-taxable loan amounts for disaster victims from qualified retirement plans.
The disallowance of business expense deductions for penalties and fines imposed by governmental agencies and other non-governmental organizations, such as the SEC, for various violations and investigations.
The disallowance of business expense deductions for local lobbying expenses or legal expenses associated with sexual harassment or abuse settlement agreements involving non-disclosure agreements.
The use of the 200% declining balance method when depreciating farm equipment, rather than being limited to the 150% declining balance method.
The $500 penalty imposed against tax preparers who claim head of household status for their clients without adequate due diligence.
Increased penalties for failing to file correct information returns, with the maximum penalty increased from $130 to $340 per return.

Continuing Areas of Non-Conformity

California Conformity Update

However, California continues to not conform to federal law in numerous areas, including:

Bonus depreciation
Section 179 expense amounts
Shorter recovery periods for qualified improvement property
Increased depreciation for luxury autos
The 15-year mandatory amortization of foreign research expenses
The 80% taxable income limitation for net operating losses
The five-year holding period for the S-Corporation built-in gains tax
Limitations on meal and entertainment expenses
The increased 60% charitable contribution individual deduction cap for cash contributions
The treatment of gambling losses
The repeal of personal casualty losses

California also does not conform to:

The enhanced casualty loss deduction provisions for qualified disaster losses, including the repeal of the 10% AGI limitation and allowing non-itemizers to claim disaster losses.
Non-taxable 529 rollovers to IRAs.
Non-taxable 529 distributions used for elementary and secondary school tuition and expenses.

In addition, California will not conform to any of the new below-the-line deductions for: