ITEMS YOUR CLIENT SHOULD BRING TO A TAX INTERVIEW (THAT YOUR ORGANIZERS MIGHT NOT LIST)
1. 1099-Ks for merchant charges. Reconcile amounts on 1099s to amounts reported by the client for Schedules C or E (or business entity return).
2. 1099-Bs for sales of stock or securities. Reconcile amounts on 1099s to amounts shown on client reports, if any.
3. Property tax statements: Look at property tax bills and estimate of value of real property in California to verify that the county has properly computed tax based on reduced property values.
4. Review government documents (W-2s, 1099s) for federal/California differences.
5. Paycheck stubs to review 2015 withholding.
6. Statements and instructions from mutual fund companies breaking down U.S. government and state tax-exempt income information.
7. All tax information broken out separately for both members of a registered domestic partnership.
8. Notices, bills, etc., from the IRS or California.
9. New clients should bring the past four years' California returns.
10. For the Child and Dependent Care Expenses Credit:
a. Nontaxable funds received, including child support and public assistance;
b. Percentage of time the qualifying dependent lives in the California home of the taxpayer;
c. Address, telephone number, and Social Security number or Employer Identification Number of the care providers;
d. Expenses paid to California providers; and
e. Nonresident military spouse's military income.
11. California K-1 and accompanying correspondence (check for California differences and possible state tax paid by S corporation, partnership, trust, or LLC).
12. Withholding paid through escrow on sales of property reported on FTB Form 593-B and closing statements. Keep a copy of the escrow closing statement and Form 593-B.
13. Withholding for residents and nonresidents reported on FTB Form 592-B.
14. Invoices from purchases made over the Internet, by mail, or by phone order where no California sales or use tax was paid (or, if the use tax table amount is used, only individual purchases of more than $1,000.
15. Any activity pertaining to a Health Savings Account, including contributions to, earnings or losses from, distributions from, and rollovers to that account.
16. Rollover or distribution amounts from Medical Savings Accounts, FSAs, HRAs, and Roth IRA conversions.
17. Did the taxpayer form a business entity this year, does the taxpayer own an inactive business, or does he or she plan to terminate a business this year?
18. Payroll records for 2013 if number of employees increased in 2014 (for businesses operating in DGAs).
19. Change of ownership of business entity.
20. Title change information for property that changed hands due to gift or death of an owner.
21. For employers with no more than 25 full-time equivalent employees, review for possible federal Health Insurance Credit. If credit is taken, there will be a federal/California difference in the expense amount for employee health insurance.
22. For Schedule C and other business returns, alert the taxpayer of the requirement for a city business license.