Enrolled September 19, 2023 Passed IN Senate September 14, 2023 Passed IN Assembly September 13, 2023 Amended IN Assembly September 08, 2023 Amended IN Assembly September 01, 2023 Amended IN Assembly June 29, 2023 Amended IN Senate April 18, 2023 Amended IN Senate March 22, 2023 Amended IN Senate March 21, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 565Introduced by Senator Caballero(Principal coauthor: Assembly Member Irwin)February 15, 2023An act to amend Section 19551.3 of, and to add and repeal Section 19587 to, the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 565, Caballero. Taxation: filing.The Personal Income Tax Law requires an individual taxable under that law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed. Existing law requires the Franchise Tax Board to notify all potential eligible individuals of available paperless filing options offered through the Franchise Tax Board, including the CalFile program and free tax preparation services.Existing law requires the State Department of Social Services (SDSS) and the State Department of Health Care Services (DHCS) to exchange data with the Franchise Tax Board upon request, including specified personal information of a program participant, as defined. For taxable years beginning January 1, 2020, and before January 1, 2026, existing law authorizes the Franchise Tax Board to disclose, upon request, specified return information to SDSS and DHCS. Existing law requires all data provided to remain confidential and be used only for specified purposes, including informing individuals of the availability of the Volunteer Income Tax Assistance, CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits.This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2031, would require the Franchise Tax Board to provide a free tax return preparation program that utilizes the prepopulation of data for qualified individuals to complete and e-file their California personal income tax returns. The bill would define a qualified individual for this purpose to mean an individual who, among other things, received an invitation from the Franchise Tax Board to participate in the free tax return preparation program, is eligible to use CalFile in that taxable year, and is eligible for the California Earned Income Tax Credit, the young child tax credit, or the foster youth tax credit in that taxable year. The bill would authorize the Franchise Tax Board to utilize CalFile as the free tax return preparation program. This bill would allow SDSS and DHCS to exchange data with the Franchise Tax Board for purposes of the free tax return preparation program. The bill would also authorize the use of information provided by the Franchise Tax Board to SDSS and DHCS for purposes of implementing the free tax return preparation program.This bill would incorporate additional changes to Section 19551.3 of the Revenue and Taxation Code proposed by AB 1002 to be operative only if this bill and AB 1002 are enacted and this bill is enacted last.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 19551.3 of the Revenue and Taxation Code is amended to read:19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Section 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Section 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.SEC. 1.5. Section 19551.3 of the Revenue and Taxation Code is amended to read:19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Sections 19582.6 and 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Sections 19582.6 and 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.SEC. 2. Section 19587 is added to the Revenue and Taxation Code, to read:19587. (a) (1) For taxable years beginning on or after January 1, 2025, and before January 1, 2031, the Franchise Tax Board shall provide a free tax return preparation program to qualified individuals, subject to paragraph (2).(2) (A) For taxable years beginning on or after January 1, 2025, and before January 1, 2027, the program shall be available for a qualified individual who is an individual with no dependents or who is a spouse filing a separate return with no dependents.(B) For taxable years beginning on or after January 1, 2027, and before January 1, 2031, the program shall be available for all qualified individuals.(b) For the purposes of this section, the following definitions shall apply:(1) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their California personal income tax returns.(2) Free tax return preparation program means a free program that utilizes the prepopulation of data, to the extent possible, for qualified individuals to complete and e-file their California personal income tax returns.(3) Qualified individual means an individual, as defined by Section 17005, that meets all of the following:(A) Has filed a California personal income tax return for at least one of the five taxable years prior to the calendar year that the individual attempts to use the free tax return preparation program.(B) Received an invitation from the Franchise Tax Board to participate in the free tax return preparation program for the taxable year.(C) Is eligible to use CalFile for the taxable year.(D) Is eligible for any of the credits allowed by Section 17052, 17052.1, or 17052.2 for the taxable year.(c) The free tax return preparation program shall meet the following requirements:(1) Provide questions to guide qualified individuals to file their California personal income tax return.(2) Allow qualified individuals to edit or correct information on their return prior to filing, including filing status and information on dependents.(d) The Franchise Tax Board may utilize CalFile as the free tax return preparation program.(e) For purposes of developing the free tax return preparation program, the Franchise Tax Board shall be exempt from all provisions of state contracting laws and any approvals or oversight from the Department of Technology or the Department of General Services, and shall be exempt from Project Approval Lifecycle requirements and reporting, including Stage Gates 1-4, Financial Analysis Worksheets, Project Status Reports, and Post Implementation Evaluation Reports, as described in Sections 4819.31 to 4819.38, inclusive, of the State Administrative Manual, and subdivisions (a) to (f), inclusive, of Section 19 of the Statewide Information Management Manual.(f) The free tax return preparation program shall be available for use in accordance with this section beginning on January 20, 2026.(g) This section shall remain in effect only until December 1, 2031, and as of that date is repealed.SEC. 3. Section 1.5 of this bill incorporates amendments to Section 19551.3 of the Revenue and Taxation Code proposed by both this bill and Assembly Bill 1002. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 19551.3 of the Revenue and Taxation Code, and (3) this bill is enacted after Assembly Bill 1002, in which case Section 1 of this bill shall not become operative.
Enrolled September 19, 2023 Passed IN Senate September 14, 2023 Passed IN Assembly September 13, 2023 Amended IN Assembly September 08, 2023 Amended IN Assembly September 01, 2023 Amended IN Assembly June 29, 2023 Amended IN Senate April 18, 2023 Amended IN Senate March 22, 2023 Amended IN Senate March 21, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 565Introduced by Senator Caballero(Principal coauthor: Assembly Member Irwin)February 15, 2023An act to amend Section 19551.3 of, and to add and repeal Section 19587 to, the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 565, Caballero. Taxation: filing.The Personal Income Tax Law requires an individual taxable under that law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed. Existing law requires the Franchise Tax Board to notify all potential eligible individuals of available paperless filing options offered through the Franchise Tax Board, including the CalFile program and free tax preparation services.Existing law requires the State Department of Social Services (SDSS) and the State Department of Health Care Services (DHCS) to exchange data with the Franchise Tax Board upon request, including specified personal information of a program participant, as defined. For taxable years beginning January 1, 2020, and before January 1, 2026, existing law authorizes the Franchise Tax Board to disclose, upon request, specified return information to SDSS and DHCS. Existing law requires all data provided to remain confidential and be used only for specified purposes, including informing individuals of the availability of the Volunteer Income Tax Assistance, CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits.This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2031, would require the Franchise Tax Board to provide a free tax return preparation program that utilizes the prepopulation of data for qualified individuals to complete and e-file their California personal income tax returns. The bill would define a qualified individual for this purpose to mean an individual who, among other things, received an invitation from the Franchise Tax Board to participate in the free tax return preparation program, is eligible to use CalFile in that taxable year, and is eligible for the California Earned Income Tax Credit, the young child tax credit, or the foster youth tax credit in that taxable year. The bill would authorize the Franchise Tax Board to utilize CalFile as the free tax return preparation program. This bill would allow SDSS and DHCS to exchange data with the Franchise Tax Board for purposes of the free tax return preparation program. The bill would also authorize the use of information provided by the Franchise Tax Board to SDSS and DHCS for purposes of implementing the free tax return preparation program.This bill would incorporate additional changes to Section 19551.3 of the Revenue and Taxation Code proposed by AB 1002 to be operative only if this bill and AB 1002 are enacted and this bill is enacted last.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Enrolled September 19, 2023 Passed IN Senate September 14, 2023 Passed IN Assembly September 13, 2023 Amended IN Assembly September 08, 2023 Amended IN Assembly September 01, 2023 Amended IN Assembly June 29, 2023 Amended IN Senate April 18, 2023 Amended IN Senate March 22, 2023 Amended IN Senate March 21, 2023
Enrolled September 19, 2023
Passed IN Senate September 14, 2023
Passed IN Assembly September 13, 2023
Amended IN Assembly September 08, 2023
Amended IN Assembly September 01, 2023
Amended IN Assembly June 29, 2023
Amended IN Senate April 18, 2023
Amended IN Senate March 22, 2023
Amended IN Senate March 21, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 565
Introduced by Senator Caballero(Principal coauthor: Assembly Member Irwin)February 15, 2023
Introduced by Senator Caballero(Principal coauthor: Assembly Member Irwin)
February 15, 2023
An act to amend Section 19551.3 of, and to add and repeal Section 19587 to, the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 565, Caballero. Taxation: filing.
The Personal Income Tax Law requires an individual taxable under that law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed. Existing law requires the Franchise Tax Board to notify all potential eligible individuals of available paperless filing options offered through the Franchise Tax Board, including the CalFile program and free tax preparation services.Existing law requires the State Department of Social Services (SDSS) and the State Department of Health Care Services (DHCS) to exchange data with the Franchise Tax Board upon request, including specified personal information of a program participant, as defined. For taxable years beginning January 1, 2020, and before January 1, 2026, existing law authorizes the Franchise Tax Board to disclose, upon request, specified return information to SDSS and DHCS. Existing law requires all data provided to remain confidential and be used only for specified purposes, including informing individuals of the availability of the Volunteer Income Tax Assistance, CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits.This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2031, would require the Franchise Tax Board to provide a free tax return preparation program that utilizes the prepopulation of data for qualified individuals to complete and e-file their California personal income tax returns. The bill would define a qualified individual for this purpose to mean an individual who, among other things, received an invitation from the Franchise Tax Board to participate in the free tax return preparation program, is eligible to use CalFile in that taxable year, and is eligible for the California Earned Income Tax Credit, the young child tax credit, or the foster youth tax credit in that taxable year. The bill would authorize the Franchise Tax Board to utilize CalFile as the free tax return preparation program. This bill would allow SDSS and DHCS to exchange data with the Franchise Tax Board for purposes of the free tax return preparation program. The bill would also authorize the use of information provided by the Franchise Tax Board to SDSS and DHCS for purposes of implementing the free tax return preparation program.This bill would incorporate additional changes to Section 19551.3 of the Revenue and Taxation Code proposed by AB 1002 to be operative only if this bill and AB 1002 are enacted and this bill is enacted last.
The Personal Income Tax Law requires an individual taxable under that law to make a return to the Franchise Tax Board stating specifically the items of the individuals gross income from all sources and the deductions and credits allowable, as prescribed. Existing law requires the Franchise Tax Board to notify all potential eligible individuals of available paperless filing options offered through the Franchise Tax Board, including the CalFile program and free tax preparation services.
Existing law requires the State Department of Social Services (SDSS) and the State Department of Health Care Services (DHCS) to exchange data with the Franchise Tax Board upon request, including specified personal information of a program participant, as defined. For taxable years beginning January 1, 2020, and before January 1, 2026, existing law authorizes the Franchise Tax Board to disclose, upon request, specified return information to SDSS and DHCS. Existing law requires all data provided to remain confidential and be used only for specified purposes, including informing individuals of the availability of the Volunteer Income Tax Assistance, CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits.
This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2031, would require the Franchise Tax Board to provide a free tax return preparation program that utilizes the prepopulation of data for qualified individuals to complete and e-file their California personal income tax returns. The bill would define a qualified individual for this purpose to mean an individual who, among other things, received an invitation from the Franchise Tax Board to participate in the free tax return preparation program, is eligible to use CalFile in that taxable year, and is eligible for the California Earned Income Tax Credit, the young child tax credit, or the foster youth tax credit in that taxable year. The bill would authorize the Franchise Tax Board to utilize CalFile as the free tax return preparation program.
This bill would allow SDSS and DHCS to exchange data with the Franchise Tax Board for purposes of the free tax return preparation program. The bill would also authorize the use of information provided by the Franchise Tax Board to SDSS and DHCS for purposes of implementing the free tax return preparation program.
This bill would incorporate additional changes to Section 19551.3 of the Revenue and Taxation Code proposed by AB 1002 to be operative only if this bill and AB 1002 are enacted and this bill is enacted last.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 19551.3 of the Revenue and Taxation Code is amended to read:19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Section 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Section 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.SEC. 1.5. Section 19551.3 of the Revenue and Taxation Code is amended to read:19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Sections 19582.6 and 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Sections 19582.6 and 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.SEC. 2. Section 19587 is added to the Revenue and Taxation Code, to read:19587. (a) (1) For taxable years beginning on or after January 1, 2025, and before January 1, 2031, the Franchise Tax Board shall provide a free tax return preparation program to qualified individuals, subject to paragraph (2).(2) (A) For taxable years beginning on or after January 1, 2025, and before January 1, 2027, the program shall be available for a qualified individual who is an individual with no dependents or who is a spouse filing a separate return with no dependents.(B) For taxable years beginning on or after January 1, 2027, and before January 1, 2031, the program shall be available for all qualified individuals.(b) For the purposes of this section, the following definitions shall apply:(1) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their California personal income tax returns.(2) Free tax return preparation program means a free program that utilizes the prepopulation of data, to the extent possible, for qualified individuals to complete and e-file their California personal income tax returns.(3) Qualified individual means an individual, as defined by Section 17005, that meets all of the following:(A) Has filed a California personal income tax return for at least one of the five taxable years prior to the calendar year that the individual attempts to use the free tax return preparation program.(B) Received an invitation from the Franchise Tax Board to participate in the free tax return preparation program for the taxable year.(C) Is eligible to use CalFile for the taxable year.(D) Is eligible for any of the credits allowed by Section 17052, 17052.1, or 17052.2 for the taxable year.(c) The free tax return preparation program shall meet the following requirements:(1) Provide questions to guide qualified individuals to file their California personal income tax return.(2) Allow qualified individuals to edit or correct information on their return prior to filing, including filing status and information on dependents.(d) The Franchise Tax Board may utilize CalFile as the free tax return preparation program.(e) For purposes of developing the free tax return preparation program, the Franchise Tax Board shall be exempt from all provisions of state contracting laws and any approvals or oversight from the Department of Technology or the Department of General Services, and shall be exempt from Project Approval Lifecycle requirements and reporting, including Stage Gates 1-4, Financial Analysis Worksheets, Project Status Reports, and Post Implementation Evaluation Reports, as described in Sections 4819.31 to 4819.38, inclusive, of the State Administrative Manual, and subdivisions (a) to (f), inclusive, of Section 19 of the Statewide Information Management Manual.(f) The free tax return preparation program shall be available for use in accordance with this section beginning on January 20, 2026.(g) This section shall remain in effect only until December 1, 2031, and as of that date is repealed.SEC. 3. Section 1.5 of this bill incorporates amendments to Section 19551.3 of the Revenue and Taxation Code proposed by both this bill and Assembly Bill 1002. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 19551.3 of the Revenue and Taxation Code, and (3) this bill is enacted after Assembly Bill 1002, in which case Section 1 of this bill shall not become operative.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 19551.3 of the Revenue and Taxation Code is amended to read:19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Section 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Section 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
SECTION 1. Section 19551.3 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Section 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Section 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Section 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Section 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Section 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Section 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Section 19587.
(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.
(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:
(A) Whether the program participant did not file a tax return.
(B) Whether the program participant was claimed as a dependent on a tax return.
(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Section 19587.
(3) The Franchise Tax Board shall not disclose or provide any federal tax information.
(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.
(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:
(A) The number of outreach contacts.
(B) A description of each outreach program and the parameters of that program.
(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.
(d) For purposes of this section, the following shall apply:
(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.
(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.
(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.
(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
SEC. 1.5. Section 19551.3 of the Revenue and Taxation Code is amended to read:19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Sections 19582.6 and 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Sections 19582.6 and 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
SEC. 1.5. Section 19551.3 of the Revenue and Taxation Code is amended to read:
### SEC. 1.5.
19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Sections 19582.6 and 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Sections 19582.6 and 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Sections 19582.6 and 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Sections 19582.6 and 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Sections 19582.6 and 19587.(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:(A) Whether the program participant did not file a tax return.(B) Whether the program participant was claimed as a dependent on a tax return.(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Sections 19582.6 and 19587.(3) The Franchise Tax Board shall not disclose or provide any federal tax information.(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:(A) The number of outreach contacts.(B) A description of each outreach program and the parameters of that program.(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.(d) For purposes of this section, the following shall apply:(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
19551.3. (a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including the name, date of birth, address, household or case identification number, and the individual taxpayer identification number or social security number of a program participant, and the names, addresses, and contact information of individuals that may qualify for the free tax return preparation program established under Section 19587. The data provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, for providing an estimate of potential state antipoverty tax credits to individuals, and for the purposes of implementing Sections 19582.6 and 19587.
(b) Notwithstanding Section 19542 or any other law, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, the Franchise Tax Board may, upon request, disclose the return information described in paragraph (1) to the State Department of Social Services and the State Department of Health Care Services.
(1) Upon receipt of the information described in subdivision (a), the Franchise Tax Board may disclose the following:
(A) Whether the program participant did not file a tax return.
(B) Whether the program participant was claimed as a dependent on a tax return.
(2) The information provided shall remain confidential and shall be used only for purposes of informing individuals of the availability of the Volunteer Income Tax Assistance (VITA), CalFile, the federal Earned Income Tax Credit, the California Earned Income Tax Credit, other federal and state antipoverty tax credits that are designed to alleviate poverty and tax burdens of low-income households, and for the purposes of implementing Sections 19582.6 and 19587.
(3) The Franchise Tax Board shall not disclose or provide any federal tax information.
(c) (1) The State Department of Social Services and the State Department of Health Care Services that receive data from the Franchise Tax Board shall annually provide to the Franchise Tax Board, no later than January 1 of each calendar year, the results and findings of outreach conducted to measure whether the outreach achieves its intended purpose of increasing the number of claims for the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other state and federal antipoverty tax credits.
(2) The results and findings of outreach conducted by the State Department of Social Services and the State Department of Health Care Services required under paragraph (1) shall include, but are not limited to, the following information:
(A) The number of outreach contacts.
(B) A description of each outreach program and the parameters of that program.
(C) The number of individuals responding to outreach contacts referenced in subparagraph (A), if known.
(d) For purposes of this section, the following shall apply:
(1) Voluntary Income Tax Assistance (VITA) means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.
(2) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their state personal income tax returns.
(3) Program participant means any individual who receives benefits from a social services program administered by the State Department of Social Services or the State Department of Health Care Services.
(e) An unauthorized disclosure or use of the information disclosed pursuant to this section is a misdemeanor pursuant to Section 19552.
SEC. 2. Section 19587 is added to the Revenue and Taxation Code, to read:19587. (a) (1) For taxable years beginning on or after January 1, 2025, and before January 1, 2031, the Franchise Tax Board shall provide a free tax return preparation program to qualified individuals, subject to paragraph (2).(2) (A) For taxable years beginning on or after January 1, 2025, and before January 1, 2027, the program shall be available for a qualified individual who is an individual with no dependents or who is a spouse filing a separate return with no dependents.(B) For taxable years beginning on or after January 1, 2027, and before January 1, 2031, the program shall be available for all qualified individuals.(b) For the purposes of this section, the following definitions shall apply:(1) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their California personal income tax returns.(2) Free tax return preparation program means a free program that utilizes the prepopulation of data, to the extent possible, for qualified individuals to complete and e-file their California personal income tax returns.(3) Qualified individual means an individual, as defined by Section 17005, that meets all of the following:(A) Has filed a California personal income tax return for at least one of the five taxable years prior to the calendar year that the individual attempts to use the free tax return preparation program.(B) Received an invitation from the Franchise Tax Board to participate in the free tax return preparation program for the taxable year.(C) Is eligible to use CalFile for the taxable year.(D) Is eligible for any of the credits allowed by Section 17052, 17052.1, or 17052.2 for the taxable year.(c) The free tax return preparation program shall meet the following requirements:(1) Provide questions to guide qualified individuals to file their California personal income tax return.(2) Allow qualified individuals to edit or correct information on their return prior to filing, including filing status and information on dependents.(d) The Franchise Tax Board may utilize CalFile as the free tax return preparation program.(e) For purposes of developing the free tax return preparation program, the Franchise Tax Board shall be exempt from all provisions of state contracting laws and any approvals or oversight from the Department of Technology or the Department of General Services, and shall be exempt from Project Approval Lifecycle requirements and reporting, including Stage Gates 1-4, Financial Analysis Worksheets, Project Status Reports, and Post Implementation Evaluation Reports, as described in Sections 4819.31 to 4819.38, inclusive, of the State Administrative Manual, and subdivisions (a) to (f), inclusive, of Section 19 of the Statewide Information Management Manual.(f) The free tax return preparation program shall be available for use in accordance with this section beginning on January 20, 2026.(g) This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
SEC. 2. Section 19587 is added to the Revenue and Taxation Code, to read:
### SEC. 2.
19587. (a) (1) For taxable years beginning on or after January 1, 2025, and before January 1, 2031, the Franchise Tax Board shall provide a free tax return preparation program to qualified individuals, subject to paragraph (2).(2) (A) For taxable years beginning on or after January 1, 2025, and before January 1, 2027, the program shall be available for a qualified individual who is an individual with no dependents or who is a spouse filing a separate return with no dependents.(B) For taxable years beginning on or after January 1, 2027, and before January 1, 2031, the program shall be available for all qualified individuals.(b) For the purposes of this section, the following definitions shall apply:(1) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their California personal income tax returns.(2) Free tax return preparation program means a free program that utilizes the prepopulation of data, to the extent possible, for qualified individuals to complete and e-file their California personal income tax returns.(3) Qualified individual means an individual, as defined by Section 17005, that meets all of the following:(A) Has filed a California personal income tax return for at least one of the five taxable years prior to the calendar year that the individual attempts to use the free tax return preparation program.(B) Received an invitation from the Franchise Tax Board to participate in the free tax return preparation program for the taxable year.(C) Is eligible to use CalFile for the taxable year.(D) Is eligible for any of the credits allowed by Section 17052, 17052.1, or 17052.2 for the taxable year.(c) The free tax return preparation program shall meet the following requirements:(1) Provide questions to guide qualified individuals to file their California personal income tax return.(2) Allow qualified individuals to edit or correct information on their return prior to filing, including filing status and information on dependents.(d) The Franchise Tax Board may utilize CalFile as the free tax return preparation program.(e) For purposes of developing the free tax return preparation program, the Franchise Tax Board shall be exempt from all provisions of state contracting laws and any approvals or oversight from the Department of Technology or the Department of General Services, and shall be exempt from Project Approval Lifecycle requirements and reporting, including Stage Gates 1-4, Financial Analysis Worksheets, Project Status Reports, and Post Implementation Evaluation Reports, as described in Sections 4819.31 to 4819.38, inclusive, of the State Administrative Manual, and subdivisions (a) to (f), inclusive, of Section 19 of the Statewide Information Management Manual.(f) The free tax return preparation program shall be available for use in accordance with this section beginning on January 20, 2026.(g) This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
19587. (a) (1) For taxable years beginning on or after January 1, 2025, and before January 1, 2031, the Franchise Tax Board shall provide a free tax return preparation program to qualified individuals, subject to paragraph (2).(2) (A) For taxable years beginning on or after January 1, 2025, and before January 1, 2027, the program shall be available for a qualified individual who is an individual with no dependents or who is a spouse filing a separate return with no dependents.(B) For taxable years beginning on or after January 1, 2027, and before January 1, 2031, the program shall be available for all qualified individuals.(b) For the purposes of this section, the following definitions shall apply:(1) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their California personal income tax returns.(2) Free tax return preparation program means a free program that utilizes the prepopulation of data, to the extent possible, for qualified individuals to complete and e-file their California personal income tax returns.(3) Qualified individual means an individual, as defined by Section 17005, that meets all of the following:(A) Has filed a California personal income tax return for at least one of the five taxable years prior to the calendar year that the individual attempts to use the free tax return preparation program.(B) Received an invitation from the Franchise Tax Board to participate in the free tax return preparation program for the taxable year.(C) Is eligible to use CalFile for the taxable year.(D) Is eligible for any of the credits allowed by Section 17052, 17052.1, or 17052.2 for the taxable year.(c) The free tax return preparation program shall meet the following requirements:(1) Provide questions to guide qualified individuals to file their California personal income tax return.(2) Allow qualified individuals to edit or correct information on their return prior to filing, including filing status and information on dependents.(d) The Franchise Tax Board may utilize CalFile as the free tax return preparation program.(e) For purposes of developing the free tax return preparation program, the Franchise Tax Board shall be exempt from all provisions of state contracting laws and any approvals or oversight from the Department of Technology or the Department of General Services, and shall be exempt from Project Approval Lifecycle requirements and reporting, including Stage Gates 1-4, Financial Analysis Worksheets, Project Status Reports, and Post Implementation Evaluation Reports, as described in Sections 4819.31 to 4819.38, inclusive, of the State Administrative Manual, and subdivisions (a) to (f), inclusive, of Section 19 of the Statewide Information Management Manual.(f) The free tax return preparation program shall be available for use in accordance with this section beginning on January 20, 2026.(g) This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
19587. (a) (1) For taxable years beginning on or after January 1, 2025, and before January 1, 2031, the Franchise Tax Board shall provide a free tax return preparation program to qualified individuals, subject to paragraph (2).(2) (A) For taxable years beginning on or after January 1, 2025, and before January 1, 2027, the program shall be available for a qualified individual who is an individual with no dependents or who is a spouse filing a separate return with no dependents.(B) For taxable years beginning on or after January 1, 2027, and before January 1, 2031, the program shall be available for all qualified individuals.(b) For the purposes of this section, the following definitions shall apply:(1) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their California personal income tax returns.(2) Free tax return preparation program means a free program that utilizes the prepopulation of data, to the extent possible, for qualified individuals to complete and e-file their California personal income tax returns.(3) Qualified individual means an individual, as defined by Section 17005, that meets all of the following:(A) Has filed a California personal income tax return for at least one of the five taxable years prior to the calendar year that the individual attempts to use the free tax return preparation program.(B) Received an invitation from the Franchise Tax Board to participate in the free tax return preparation program for the taxable year.(C) Is eligible to use CalFile for the taxable year.(D) Is eligible for any of the credits allowed by Section 17052, 17052.1, or 17052.2 for the taxable year.(c) The free tax return preparation program shall meet the following requirements:(1) Provide questions to guide qualified individuals to file their California personal income tax return.(2) Allow qualified individuals to edit or correct information on their return prior to filing, including filing status and information on dependents.(d) The Franchise Tax Board may utilize CalFile as the free tax return preparation program.(e) For purposes of developing the free tax return preparation program, the Franchise Tax Board shall be exempt from all provisions of state contracting laws and any approvals or oversight from the Department of Technology or the Department of General Services, and shall be exempt from Project Approval Lifecycle requirements and reporting, including Stage Gates 1-4, Financial Analysis Worksheets, Project Status Reports, and Post Implementation Evaluation Reports, as described in Sections 4819.31 to 4819.38, inclusive, of the State Administrative Manual, and subdivisions (a) to (f), inclusive, of Section 19 of the Statewide Information Management Manual.(f) The free tax return preparation program shall be available for use in accordance with this section beginning on January 20, 2026.(g) This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
19587. (a) (1) For taxable years beginning on or after January 1, 2025, and before January 1, 2031, the Franchise Tax Board shall provide a free tax return preparation program to qualified individuals, subject to paragraph (2).
(2) (A) For taxable years beginning on or after January 1, 2025, and before January 1, 2027, the program shall be available for a qualified individual who is an individual with no dependents or who is a spouse filing a separate return with no dependents.
(B) For taxable years beginning on or after January 1, 2027, and before January 1, 2031, the program shall be available for all qualified individuals.
(b) For the purposes of this section, the following definitions shall apply:
(1) CalFile means the Franchise Tax Boards free, direct, online program for taxpayers to complete and e-file their California personal income tax returns.
(2) Free tax return preparation program means a free program that utilizes the prepopulation of data, to the extent possible, for qualified individuals to complete and e-file their California personal income tax returns.
(3) Qualified individual means an individual, as defined by Section 17005, that meets all of the following:
(A) Has filed a California personal income tax return for at least one of the five taxable years prior to the calendar year that the individual attempts to use the free tax return preparation program.
(B) Received an invitation from the Franchise Tax Board to participate in the free tax return preparation program for the taxable year.
(C) Is eligible to use CalFile for the taxable year.
(D) Is eligible for any of the credits allowed by Section 17052, 17052.1, or 17052.2 for the taxable year.
(c) The free tax return preparation program shall meet the following requirements:
(1) Provide questions to guide qualified individuals to file their California personal income tax return.
(2) Allow qualified individuals to edit or correct information on their return prior to filing, including filing status and information on dependents.
(d) The Franchise Tax Board may utilize CalFile as the free tax return preparation program.
(e) For purposes of developing the free tax return preparation program, the Franchise Tax Board shall be exempt from all provisions of state contracting laws and any approvals or oversight from the Department of Technology or the Department of General Services, and shall be exempt from Project Approval Lifecycle requirements and reporting, including Stage Gates 1-4, Financial Analysis Worksheets, Project Status Reports, and Post Implementation Evaluation Reports, as described in Sections 4819.31 to 4819.38, inclusive, of the State Administrative Manual, and subdivisions (a) to (f), inclusive, of Section 19 of the Statewide Information Management Manual.
(f) The free tax return preparation program shall be available for use in accordance with this section beginning on January 20, 2026.
(g) This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
SEC. 3. Section 1.5 of this bill incorporates amendments to Section 19551.3 of the Revenue and Taxation Code proposed by both this bill and Assembly Bill 1002. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 19551.3 of the Revenue and Taxation Code, and (3) this bill is enacted after Assembly Bill 1002, in which case Section 1 of this bill shall not become operative.
SEC. 3. Section 1.5 of this bill incorporates amendments to Section 19551.3 of the Revenue and Taxation Code proposed by both this bill and Assembly Bill 1002. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 19551.3 of the Revenue and Taxation Code, and (3) this bill is enacted after Assembly Bill 1002, in which case Section 1 of this bill shall not become operative.
SEC. 3. Section 1.5 of this bill incorporates amendments to Section 19551.3 of the Revenue and Taxation Code proposed by both this bill and Assembly Bill 1002. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 19551.3 of the Revenue and Taxation Code, and (3) this bill is enacted after Assembly Bill 1002, in which case Section 1 of this bill shall not become operative.
### SEC. 3.