| 1 | 1 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1791Introduced by Assembly Member Boerner HorvathFebruary 22, 2019 An act to add Section 18631.2 to the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTAB 1791, as introduced, Boerner Horvath. Informational returns.Existing law requires specified persons to file informational returns with the Franchise Tax Board and authorizes the Franchise Tax Board to require persons that file specified federal returns to file copies of those returns with the state.This bill would require a person that files a Form 1099 with respect to a nonresident who performed services within the state and a person required to file a Form 6050W to file a duplicate of that form, respectively, with the Franchise Tax Board, under specified circumstances. The bill would additionally require a third-party settlement organization to report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code with respect to the third-party network transactions related to that participating payee, as provided, and would lower the de minimis threshold for that information, as provided. The bill would authorize the Franchise Tax Board to accept electronic filing of those forms.Because the failure to provide information required under these provisions would be a crime, under specified conditions, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 18631.2 is added to the Revenue and Taxation Code, to read:18631.2. (a) Any person required to file a federal Form 1099 with respect to a nonresident who performed services within the state during the taxable year shall file a copy of the form with the Franchise Tax Board. (b) Any person required to file an information return pursuant to Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, shall, within 30 days of the date the filing is due, file a duplicate with the Franchise Tax Board of those information returns on which the recipient has an address within the state.(c) (1) At the same time the information filing required by subdivision (b) is due with the Franchise Tax Board, a third-party settlement organization shall report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, with respect to the third-party network transactions related to that participating payee.(2) For purposes of this subdivision, Section 6050W(e) of the Internal Revenue Code, relating to exception for de minimis payments by third party settlement organizations, shall not apply and the de minimis exceptions of Section 6041(a) of the Internal Revenue Code, relating to payments of $600 or more, shall apply.(d) The Franchise Tax Board may authorize electronic filing of the Form 1099 and Form 6050W filed pursuant to this section.(e) For purposes of this section:(1) Third-party network transaction means any transaction which is settled by a third-party settlement organization.(2) Third-party settlement organization means a central organization which has the contractual obligation to make payment to participating payees of third-party network transactions.(f) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to implement the purposes of this section, including regulations related to electronic filing.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (g) The failure to provide the information required by this section shall be subject to the provisions of Chapter 9 (commencing with Section 19701). SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1791Introduced by Assembly Member Boerner HorvathFebruary 22, 2019 An act to add Section 18631.2 to the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTAB 1791, as introduced, Boerner Horvath. Informational returns.Existing law requires specified persons to file informational returns with the Franchise Tax Board and authorizes the Franchise Tax Board to require persons that file specified federal returns to file copies of those returns with the state.This bill would require a person that files a Form 1099 with respect to a nonresident who performed services within the state and a person required to file a Form 6050W to file a duplicate of that form, respectively, with the Franchise Tax Board, under specified circumstances. The bill would additionally require a third-party settlement organization to report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code with respect to the third-party network transactions related to that participating payee, as provided, and would lower the de minimis threshold for that information, as provided. The bill would authorize the Franchise Tax Board to accept electronic filing of those forms.Because the failure to provide information required under these provisions would be a crime, under specified conditions, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION |
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| 10 | 10 | | |
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| 11 | 11 | | Assembly Bill No. 1791 |
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| 12 | 12 | | |
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| 13 | 13 | | Introduced by Assembly Member Boerner HorvathFebruary 22, 2019 |
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| 15 | 15 | | Introduced by Assembly Member Boerner Horvath |
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| 16 | 16 | | February 22, 2019 |
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| 18 | 18 | | An act to add Section 18631.2 to the Revenue and Taxation Code, relating to taxation. |
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| 19 | 19 | | |
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| 20 | 20 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 21 | 21 | | |
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| 22 | 22 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 23 | 23 | | |
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| 24 | 24 | | AB 1791, as introduced, Boerner Horvath. Informational returns. |
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| 25 | 25 | | |
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| 26 | 26 | | Existing law requires specified persons to file informational returns with the Franchise Tax Board and authorizes the Franchise Tax Board to require persons that file specified federal returns to file copies of those returns with the state.This bill would require a person that files a Form 1099 with respect to a nonresident who performed services within the state and a person required to file a Form 6050W to file a duplicate of that form, respectively, with the Franchise Tax Board, under specified circumstances. The bill would additionally require a third-party settlement organization to report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code with respect to the third-party network transactions related to that participating payee, as provided, and would lower the de minimis threshold for that information, as provided. The bill would authorize the Franchise Tax Board to accept electronic filing of those forms.Because the failure to provide information required under these provisions would be a crime, under specified conditions, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason. |
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| 28 | 28 | | Existing law requires specified persons to file informational returns with the Franchise Tax Board and authorizes the Franchise Tax Board to require persons that file specified federal returns to file copies of those returns with the state. |
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| 29 | 29 | | |
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| 30 | 30 | | This bill would require a person that files a Form 1099 with respect to a nonresident who performed services within the state and a person required to file a Form 6050W to file a duplicate of that form, respectively, with the Franchise Tax Board, under specified circumstances. The bill would additionally require a third-party settlement organization to report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code with respect to the third-party network transactions related to that participating payee, as provided, and would lower the de minimis threshold for that information, as provided. The bill would authorize the Franchise Tax Board to accept electronic filing of those forms. |
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| 32 | 32 | | Because the failure to provide information required under these provisions would be a crime, under specified conditions, this bill would impose a state-mandated local program. |
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| 33 | 33 | | |
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| 34 | 34 | | The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. |
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| 35 | 35 | | |
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| 36 | 36 | | This bill would provide that no reimbursement is required by this act for a specified reason. |
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| 37 | 37 | | |
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| 38 | 38 | | ## Digest Key |
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| 39 | 39 | | |
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| 40 | 40 | | ## Bill Text |
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| 42 | 42 | | The people of the State of California do enact as follows:SECTION 1. Section 18631.2 is added to the Revenue and Taxation Code, to read:18631.2. (a) Any person required to file a federal Form 1099 with respect to a nonresident who performed services within the state during the taxable year shall file a copy of the form with the Franchise Tax Board. (b) Any person required to file an information return pursuant to Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, shall, within 30 days of the date the filing is due, file a duplicate with the Franchise Tax Board of those information returns on which the recipient has an address within the state.(c) (1) At the same time the information filing required by subdivision (b) is due with the Franchise Tax Board, a third-party settlement organization shall report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, with respect to the third-party network transactions related to that participating payee.(2) For purposes of this subdivision, Section 6050W(e) of the Internal Revenue Code, relating to exception for de minimis payments by third party settlement organizations, shall not apply and the de minimis exceptions of Section 6041(a) of the Internal Revenue Code, relating to payments of $600 or more, shall apply.(d) The Franchise Tax Board may authorize electronic filing of the Form 1099 and Form 6050W filed pursuant to this section.(e) For purposes of this section:(1) Third-party network transaction means any transaction which is settled by a third-party settlement organization.(2) Third-party settlement organization means a central organization which has the contractual obligation to make payment to participating payees of third-party network transactions.(f) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to implement the purposes of this section, including regulations related to electronic filing.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (g) The failure to provide the information required by this section shall be subject to the provisions of Chapter 9 (commencing with Section 19701). SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 44 | 44 | | The people of the State of California do enact as follows: |
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| 46 | 46 | | ## The people of the State of California do enact as follows: |
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| 48 | 48 | | SECTION 1. Section 18631.2 is added to the Revenue and Taxation Code, to read:18631.2. (a) Any person required to file a federal Form 1099 with respect to a nonresident who performed services within the state during the taxable year shall file a copy of the form with the Franchise Tax Board. (b) Any person required to file an information return pursuant to Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, shall, within 30 days of the date the filing is due, file a duplicate with the Franchise Tax Board of those information returns on which the recipient has an address within the state.(c) (1) At the same time the information filing required by subdivision (b) is due with the Franchise Tax Board, a third-party settlement organization shall report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, with respect to the third-party network transactions related to that participating payee.(2) For purposes of this subdivision, Section 6050W(e) of the Internal Revenue Code, relating to exception for de minimis payments by third party settlement organizations, shall not apply and the de minimis exceptions of Section 6041(a) of the Internal Revenue Code, relating to payments of $600 or more, shall apply.(d) The Franchise Tax Board may authorize electronic filing of the Form 1099 and Form 6050W filed pursuant to this section.(e) For purposes of this section:(1) Third-party network transaction means any transaction which is settled by a third-party settlement organization.(2) Third-party settlement organization means a central organization which has the contractual obligation to make payment to participating payees of third-party network transactions.(f) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to implement the purposes of this section, including regulations related to electronic filing.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (g) The failure to provide the information required by this section shall be subject to the provisions of Chapter 9 (commencing with Section 19701). |
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| 50 | 50 | | SECTION 1. Section 18631.2 is added to the Revenue and Taxation Code, to read: |
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| 52 | 52 | | ### SECTION 1. |
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| 54 | 54 | | 18631.2. (a) Any person required to file a federal Form 1099 with respect to a nonresident who performed services within the state during the taxable year shall file a copy of the form with the Franchise Tax Board. (b) Any person required to file an information return pursuant to Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, shall, within 30 days of the date the filing is due, file a duplicate with the Franchise Tax Board of those information returns on which the recipient has an address within the state.(c) (1) At the same time the information filing required by subdivision (b) is due with the Franchise Tax Board, a third-party settlement organization shall report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, with respect to the third-party network transactions related to that participating payee.(2) For purposes of this subdivision, Section 6050W(e) of the Internal Revenue Code, relating to exception for de minimis payments by third party settlement organizations, shall not apply and the de minimis exceptions of Section 6041(a) of the Internal Revenue Code, relating to payments of $600 or more, shall apply.(d) The Franchise Tax Board may authorize electronic filing of the Form 1099 and Form 6050W filed pursuant to this section.(e) For purposes of this section:(1) Third-party network transaction means any transaction which is settled by a third-party settlement organization.(2) Third-party settlement organization means a central organization which has the contractual obligation to make payment to participating payees of third-party network transactions.(f) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to implement the purposes of this section, including regulations related to electronic filing.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (g) The failure to provide the information required by this section shall be subject to the provisions of Chapter 9 (commencing with Section 19701). |
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| 56 | 56 | | 18631.2. (a) Any person required to file a federal Form 1099 with respect to a nonresident who performed services within the state during the taxable year shall file a copy of the form with the Franchise Tax Board. (b) Any person required to file an information return pursuant to Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, shall, within 30 days of the date the filing is due, file a duplicate with the Franchise Tax Board of those information returns on which the recipient has an address within the state.(c) (1) At the same time the information filing required by subdivision (b) is due with the Franchise Tax Board, a third-party settlement organization shall report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, with respect to the third-party network transactions related to that participating payee.(2) For purposes of this subdivision, Section 6050W(e) of the Internal Revenue Code, relating to exception for de minimis payments by third party settlement organizations, shall not apply and the de minimis exceptions of Section 6041(a) of the Internal Revenue Code, relating to payments of $600 or more, shall apply.(d) The Franchise Tax Board may authorize electronic filing of the Form 1099 and Form 6050W filed pursuant to this section.(e) For purposes of this section:(1) Third-party network transaction means any transaction which is settled by a third-party settlement organization.(2) Third-party settlement organization means a central organization which has the contractual obligation to make payment to participating payees of third-party network transactions.(f) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to implement the purposes of this section, including regulations related to electronic filing.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (g) The failure to provide the information required by this section shall be subject to the provisions of Chapter 9 (commencing with Section 19701). |
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| 58 | 58 | | 18631.2. (a) Any person required to file a federal Form 1099 with respect to a nonresident who performed services within the state during the taxable year shall file a copy of the form with the Franchise Tax Board. (b) Any person required to file an information return pursuant to Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, shall, within 30 days of the date the filing is due, file a duplicate with the Franchise Tax Board of those information returns on which the recipient has an address within the state.(c) (1) At the same time the information filing required by subdivision (b) is due with the Franchise Tax Board, a third-party settlement organization shall report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, with respect to the third-party network transactions related to that participating payee.(2) For purposes of this subdivision, Section 6050W(e) of the Internal Revenue Code, relating to exception for de minimis payments by third party settlement organizations, shall not apply and the de minimis exceptions of Section 6041(a) of the Internal Revenue Code, relating to payments of $600 or more, shall apply.(d) The Franchise Tax Board may authorize electronic filing of the Form 1099 and Form 6050W filed pursuant to this section.(e) For purposes of this section:(1) Third-party network transaction means any transaction which is settled by a third-party settlement organization.(2) Third-party settlement organization means a central organization which has the contractual obligation to make payment to participating payees of third-party network transactions.(f) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to implement the purposes of this section, including regulations related to electronic filing.(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (g) The failure to provide the information required by this section shall be subject to the provisions of Chapter 9 (commencing with Section 19701). |
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| 62 | 62 | | 18631.2. (a) Any person required to file a federal Form 1099 with respect to a nonresident who performed services within the state during the taxable year shall file a copy of the form with the Franchise Tax Board. |
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| 64 | 64 | | (b) Any person required to file an information return pursuant to Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, shall, within 30 days of the date the filing is due, file a duplicate with the Franchise Tax Board of those information returns on which the recipient has an address within the state. |
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| 66 | 66 | | (c) (1) At the same time the information filing required by subdivision (b) is due with the Franchise Tax Board, a third-party settlement organization shall report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code, relating to returns relating to payments made in settlement of payment card and third party network transactions, with respect to the third-party network transactions related to that participating payee. |
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| 68 | 68 | | (2) For purposes of this subdivision, Section 6050W(e) of the Internal Revenue Code, relating to exception for de minimis payments by third party settlement organizations, shall not apply and the de minimis exceptions of Section 6041(a) of the Internal Revenue Code, relating to payments of $600 or more, shall apply. |
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| 70 | 70 | | (d) The Franchise Tax Board may authorize electronic filing of the Form 1099 and Form 6050W filed pursuant to this section. |
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| 72 | 72 | | (e) For purposes of this section: |
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| 74 | 74 | | (1) Third-party network transaction means any transaction which is settled by a third-party settlement organization. |
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| 76 | 76 | | (2) Third-party settlement organization means a central organization which has the contractual obligation to make payment to participating payees of third-party network transactions. |
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| 78 | 78 | | (f) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to implement the purposes of this section, including regulations related to electronic filing. |
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| 80 | 80 | | (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. |
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| 82 | 82 | | (g) The failure to provide the information required by this section shall be subject to the provisions of Chapter 9 (commencing with Section 19701). |
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| 84 | 84 | | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 86 | 86 | | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 88 | 88 | | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 90 | 90 | | ### SEC. 2. |
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