Bill Text: CA AB1863 | 2021-2022 | Regular Session | Amended

California Assembly Bill 1863 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Income tax: CalFile: online tax filing: Volunteer Income Tax Assistance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-09-30 - Chaptered by Secretary of State - Chapter 953, Statutes of 2022. [AB1863 Detail]

Download: California-2021-AB1863-Amended.html

Amended IN Assembly March 24, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 1863

Introduced by Assembly Member Irwin

February 08, 2022

An act to amend Section ~~974~~ 19582 of the ~~Military and Veterans~~ Revenue and Taxation Code, relating to ~~veterans.~~ taxation.

LEGISLATIVE COUNSEL'S DIGEST

AB 1863, as amended, Irwin. ~~County veterans service officers.~~ Income tax: ReadyReturns.

Existing law requires the Franchise Tax Board to make available to taxpayers tax forms to allow taxpayers to file returns under the Personal Income Tax Law and Corporation Tax Law.
Existing law, beginning on or after January 1, 2015, in modified conformity with federal income tax laws, allows an Earned Income Tax Credit against personal income tax and a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability to an eligible individual that is equal to that portion of the Earned Income Tax Credit allowed by federal law as determined by the Earned Income Tax Credit adjustment factor, as specified.
This bill would require the Franchise Tax Board to develop a return for a ReadyReturn Program under which the board would prepare an electronic tax return for eligible taxpayers that contains income and tax liability information. The bill would require the board to notify taxpayers of their eligibility for the program and to send a ReadyReturn to eligible taxpayers, as specified. This bill would define “eligible taxpayers” as those taxpayers who qualify for the Earned Income Tax Credit. This bill would state the Legislature’s intent that the Franchise Tax Board develop an alternative method to allow taxpayers without internet access to request a completed ReadyReturn in paper form, as provided. This bill would also require the Franchise Tax Board to work with computer software providers to enable taxpayers to access, and to authorize their tax preparers and agents to access, information under the program, as specified.
Existing law authorizes the board of supervisors of each county to appoint a county veterans service officer to perform duties relating to the administration of benefits to veterans. Existing law requires the Department of Veterans Affairs annually to prepare a report of the activities of county veterans service officers, including information on the number of veterans and their family members who have contacted or utilized the services of the county veterans service officers and the benefits received by veterans and their dependents as a result of the efforts of the county veterans service officers.
~~This bill would make a technical, nonsubstantive change to these provisions.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 19582 of the Revenue and Taxation Code is amended to read:

19582.

(a) For taxable years beginning on or after January 1, 1987, the Franchise Tax Board shall make available to taxpayers tax ~~forms~~ forms, including those provided as a part of the ReadyReturn Program described in subdivisions (c) and (d), that are as simple as possible for taxpayers to prepare. These forms shall be designed to provide for taxpayers to copy figures from, or attach a copy of, their federal return or portions thereof, or both, and to make any necessary adjustments.

~~The~~

(b) The Franchise Tax Board shall, in preparing tax forms, make every effort to ease taxpayers’ compliance burden, including, but not limited to, (a) designing forms so that, to the maximum extent possible, items already entered on the federal return may be copied to the state form, (b) reducing the number of state schedules by attaching copies of comparable federal schedules to the state return, where appropriate, and (c) choosing a weight and quality of paper, color of ink, and general form design which will facilitate the preparation of returns. to:

(1) Designing forms so that, to the maximum extent possible, items already entered on the federal return may be copied to the state form.
(2) Reducing the number of state schedules by attaching copies of comparable federal schedules to the state return, where appropriate.
(3) Choosing a weight and quality of paper, color of ink, and general form design which will facilitate the preparation of returns.
(c) (1) The ReadyReturn Program is an optional filing method that provides an eligible taxpayer a tax return using tax data of the taxpayer, already collected by the Franchise Tax Board, and calculations based on that data.
(2) The Franchise Tax Board shall provide an eligible taxpayer with a ReadyReturn in electronic format in the manner specified in this section. The ReadyReturn shall include a record of the taxpayer’s wages that have been reported by employers. The ReadyReturn shall also provide the tax liability attributable to that income.
(d) The Franchise Tax Board shall notify an eligible taxpayer that the ReadyReturn Program is an available filing option. The notification shall contain all of the following information:
(1) That an eligible taxpayer may choose to view or file a ReadyReturn under the program.
(2) A description of the ReadyReturn Program that includes, but is not limited to, the following statement:
“ReadyReturn gives a taxpayer access to the wage data received from their employer. ReadyReturn gives a taxpayer the option of viewing or filing a ‘ReadyReturn.’ A ReadyReturn is a completed tax return that is based on the following: wage data received from an employer, the taxpayer’s filing status from the prior year, amounts withheld by the employer, and additional taxes owed to the state or refund owed to the taxpayer.”
(3) Immediately below the description set forth in paragraph (2) and in boldface type and in a large font, the following statement:
“The ReadyReturn Program is an optional service for the convenience of taxpayers with simple returns. You are under absolutely no requirement to use this program. You may choose not to look at the online program, or to look at the online program and not file the ReadyReturn. If you choose not to view or file a ReadyReturn, this will not affect your tax liability in any way.”
(4) The statement described in paragraph (3) shall be prominently displayed on the ReadyReturn internet website, and provided to every eligible taxpayer that uses the online ReadyReturn prior to logging in and prior to electronically signing an electronically submitted ReadyReturn.
(e) (1) A negative inference shall not be drawn from a taxpayer’s decision not to file a ReadyReturn or to file a return under a different method.
(2) If an eligible taxpayer files a ReadyReturn, a penalty shall not be imposed pursuant to subparagraph (B) of paragraph (1) of subdivision (a) of Section 19132 with respect to any tax required to be shown on that return which is not so shown.
(f) It is the intent of the Legislature that the Franchise Tax Board should do all of the following:
(1) Provide all taxpayers with access to wage data provided by employers and other tax return information reported by third parties and maintained on the records of the Franchise Tax Board.
(2) Provide available tax return information to taxpayers starting on January 1, 2024.
(3) Develop an alternative method for an eligible taxpayer without access to the internet to request their completed ReadyReturn in paper form. The Franchise Tax Board may eliminate the paper ReadyReturn delivery option if the volume of paper ReadyReturn requests decreases below 10 percent of the total ReadyReturns filed in the immediately previous taxable year.
(g) Contingent upon the successful implementation of an authentication solution to ensure taxpayer privacy and security of taxpayer data, an eligible taxpayer shall be able to authorize their preparer or agent to access any information provided as part of the ReadyReturn Program and any third party reporting information described in subdivision (d). The Franchise Tax Board shall work with providers of proprietary software to make the information described in subdivisions (c) and (d) available to taxpayers using that software.
(h) For purposes of this section, “eligible taxpayer” means a taxpayer eligible for the earned income tax credit described in Section 17052.

SECTION 1.Section 974 of the Military and Veterans Code is amended to read:
974.
(a)The Department of Veterans Affairs shall annually prepare a report of the activities of county veterans service officers, and may require each county veterans service officer to submit information required to prepare the report. The report shall include all of the following:
~~(1)The number of veterans and their family members who have contacted or utilized the services of the county veterans service offices during the fiscal year.~~
~~(2)The number of claims filed to achieve benefits such as pension, disability compensation, and health care on behalf of veterans and their dependents.~~
~~(3)The annualized monetary value of benefits received by veterans and their dependents as a result of the efforts of county veterans service offices, broken down by type of benefit.~~
(4)A summary of other services provided by county veterans service offices and special events and activities in which county veterans service offices participated, such as veterans outreach events, homeless veteran “Stand Downs,” and job fairs for veterans.
~~(b)The information required to be included in paragraphs (1) to (3), inclusive, of subdivision (a) shall be set forth for each county together with a statewide total.~~
(c)The department shall transmit a copy of the report to the Department of Finance, the State Department of Health Care Services, the California Veterans Board, and to each Member of the Legislature.