who is franchise tax board

The Franchise Tax Board

operates in the United States and it is usually a state-operated tax agency for both personal and business taxes. Franchise taxes allow corporations to do business within a state, though states have varying tax rates for the corporations based on their legal filing and gross income levels.

Full Answer

Can the Franchise Tax Board Levy Social Security?

— KidneyBuzz Can Social Security income be garnished by the Franchise Tax Board? If the Franchise Tax Board (FTB) is notified that the bank account consists only of Social Security earnings, your account would not be garnished. Social Security income is excluded from state tax collection activity.

Can I pay the Franchise Tax Board online?

Use Web Pay to pay your taxes online from your bank account. No registration required. Pay today or schedule payments up to one year in advance. Consequently, does Franchise Tax Board take credit cards?

What is the minimum franchise tax?

$800 Minimum Franchise Tax Overview. The $800 minimum franchise tax is the minimum franchise fee that a corporation will have to pay to operate in California, which is similar to the tax situation in many states. What is not similar, however, is the structure and rate of this tax.

Are garnishments to the franchise tax board deductible?

The tax portion taken out through those garnishments is added to your state income tax deduction on the Federal itemized deductions schedule A&B, while the portion that is interest on the total unpaid tax due would be deducted on the same schedule as an interest expense.

How long has Rachael been with FTB?

Rachael has been with FTB since 1991. Her extensive knowledge of audit programs came from serving as the Individual and Pass-Through-Entity (IPTE) Bureau Director and managing and working in several audit business areas for 26 years. Her experience covers personal income tax, pass-through entities, federal audits, audit policy, protest resolution, financial operations, and human resource activities for audit.

Who is the Chairman of the Board of Equalization?

Antonio Vazquez serves as Chairman of the Board of Equalization (BOE), representing 10 million constituents living in the 3rd District, which includes most of Los Angeles County, all of Ventura County, and a portion of San Bernardino County.

Who is Jennifer from FTB?

Jennifer has worked for FTB since 1988. She began her career in the filing program. Since then she has held a variety of positions in the Filing and Accounts Receivable Management (ARM) Divisions. She has led and managed large collection programs. She directed the recovery of delinquent business entity taxes, personal income taxes, and all nontax debts (referred from 400 state and local agencies). ARM collects more than $3.4 billion and $578 million annually for the tax and nontax programs respectively.

What is the California Franchise Tax Board?

The California Franchise Tax Board ( FTB) collects state personal income tax and corporate income tax of California. It is part of the California Government Operations Agency . The board is composed of the California State Controller, the director of the California Department of Finance, and the chair of the California Board of Equalization.

Who was the first woman to be a franchise tax commissioner?

The Executive Officer of the Franchise Tax Board is Selvi Stanislaus, the first woman to hold the post. She assumed this position in 2006.

What does the FTB do?

The FTB also collects delinquent vehicle registration debt collections on behalf of the California Department of Motor Vehicles and delinquent court ordered debt. The FTB also does financial audits of certain candidates for state office, ballot proposition committees, and lobbyists, according to a random selection process by the California Fair Political Practices Commission .

What is the FTB tax?

Corporate income tax. The FTB levies a franchise tax on businesses for doing business in California. The FTB's name reflects the fact that it was originally created to collect this tax. The agency's name was left unchanged even after the state created a personal income tax and added it to the FTB's responsibilities.

How much does the FTB collect in California?

Over the past decade, the FTB has collected an average of $9.5 billion per year in corporate income taxes.

How much does the FTB collect?

Meanwhile, non-residents are taxed on their California-based income. In recent years, the FTB collects more than $50 billion each year in personal income taxes.

What is the purpose of the California Franchise Tax Board?

For example, the California Franchise Tax Board states that its mission is to "help taxpayers file tax returns timely, accurately, and pay the correct amount to fund services important to Californians.". 3.

What is franchise tax?

A franchise tax is a levy paid by certain enterprises that want to do business in some states. Contrary to what the name implies, a franchise tax is not a tax imposed on a franchise. Some entities are exempt from franchise taxes including fraternal organizations, nonprofits, and some limited liability corporations.

How to calculate franchise tax?

As noted above, each state may have a different method of calculating franchise taxes. Let's use Texas as an example. The state's comptroller levies taxes on all entities that do business in the state and requires them to file an Annual Franchise Tax Report every year by May 15th. The state calculates its franchise tax based on a company’s margin which is computed in one of four ways: 1 Total revenue multiplied by 70% 2 Total revenue minus cost of goods sold (COGS) 3 Total revenue minus compensation paid to all personnel 4 Total revenue minus $1 million

What is the difference between franchise and income tax?

Income Tax. There are some key differences between a franchise and income tax. Unlike state income taxes, franchise taxes are not based on a corporation’s profit. A business entity must file and pay the franchise tax regardless of whether it makes a profit in any given year.

How much is franchise tax in California?

In California, the franchise tax rate for S corporations is the greater of either $800 or 1.5% of the corporation's net income. For LLCs, the franchise tax is calculated based on gross income tiers and can span between $800, up to $11,790.

How to calculate corporate revenue?

Corporate revenue is calculated by subtracting statutory exclusions from the amount of revenue reported on a corporation's federal income tax return .

When do you have to file a franchise tax return?

The state's comptroller levies taxes on all entities that do business in the state and requires them to file an Annual Franchise Tax Report every year by May 15th. The state calculates its franchise tax based on a company’s margin which is computed in one of four ways: Total revenue multiplied by 70%.

When does a SOS corporation begin?

The corporation's existence begins when the SOS endorses the Articles of Incorporation and continues until the owner (s) dissolve the corporation

What is a corporation?

A corporation is an entity that is owned by its shareholders (owners). Corporations can be taxed 2 different ways. C corporation. Generally taxed on their income and the owners are taxed on these earnings when distributed as payments or when the shareholder sells stock. S corporation.

Does a foreign corporation qualify for SOS?

A foreign corporation that does not qualify with the SOS, but does business in California, is subject to the franchise tax

Is a S corporation taxable income?

Generally taxed on their income and shareholders are taxed on their share of the S corporation’s taxable income whether payments are distributed or not

Overview

History

Tax programs

Non-tax programs

See also

External links