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Breaking: FTB Exempts EZ Credit From 8886 Requirement

I have just been alerted to FTB Notice 2009-02 “Exemption from Contractual Protection Reportable Transaction Disclosure and Reporting Rules for California Enterprise Zone Hiring Credits,” posted today. Here is the link to the full notice: http://www.ftb.ca.gov/law/notices/2009/2009_2.pdf.

The notice states:

The purpose of this Notice is to advise taxpayers and material advisors that a transaction involving a refundable or contingent fee relating to a California Enterprise Zone Hiring Credit (EZ Hiring Credit) will not be taken into account in determining whether the transaction is a transaction with contractual protection for purposes of the reportable transaction disclosure rules under Treasury Regulation section 1.6011-4(b)(4). The Franchise Tax Board (FTB) will no longer require: (1) taxpayers to disclose a transaction with contractual protection involving EZ Hiring Credits, or (2) material advisors to report a transaction with contractual protection involving EZ Hiring Credits or maintain lists of such advisees. However, if the transaction with contractual protection involving EZ Hiring Credits falls under one of the other categories of reportable transactions required to be disclosed under Treasury Regulation section 1.6011-4(b), disclosure will be required pursuant to that other section.

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