California

California Dreaming of a Voluntary Compliance Program

February 23, 2022 By Alston & Bird Tax Team

Our Unclaimed Property Team reviews California AB 2280, which would allow the State Controller’s Office to establish a new California Voluntary Compliance Program. The proposed VCP would be available only to certain holders To qualify for the interest waiver, a holder would be required to participate in an educational training program and meet other requirements The controller would be authorized to reinstate interest for any holder that does not comply with reporting and payment requirements Read the full advisory here. [...]Read more

California Updates Unclaimed Property Law to Recognize Electronic Recurring Bank Account Activity

October 12, 2016 By Michael Giovannini and Samantha Bautista

On September 22, California Governor Jerry Brown signed AB 2258 into law, which revises California’s Unclaimed Property Law (UPL) to expressly recognize that certain electronic recurring transactions constitute “owner-generated activity” that would prevent accounts held by a banking or financial organization from being considered presumed abandoned. As described by the bill’s author, AB 2258 effectuates a “simple modernization of the statute,” which will “eliminate unnecessary escheatment notices to be sent from the bank to the account holder that require the account holder to affirm [...]Read more

State & Local Tax Advisory – Gillette Overturned: One Test, Two Decisions in California

January 7, 2016 By Michael Giovannini

On Thursday, December 31, 2015, the Supreme Court of California issued its decision in Gillette Co. v. Franchise Tax Board, reversing the California Court of Appeal and holding that the Multistate Tax Compact is not a binding compact between its member states. Accordingly, the California legislature had the authority to, and did in fact, replace the state’s equally weighted apportionment formula with a double-weighted-sales formula in 1993. This highly anticipated decision by the California high court will undoubtedly have a significant impact on the landscape of ongoing disputes among taxpayers [...]Read more