California's Enrolled Agents Head to the State Capitol to Speak with Political Leaders

Enrolled Agents: The Tax Professionals

SACRAMENTO, Calif., Jan. 3, 2011 /PRNewswire-USNewswire/ -- The following was released today by the California Society of Enrolled Agents:

WHO: This event will be hosted by the California Society of Enrolled Agents (CSEA), which currently has more than 4,200 Members worldwide. CSEA has eighteen affiliated Chapters throughout the state of California, in every legislative district.  

(Logo: http://photos.prnewswire.com/prnh/20101220/DC20267LOGO)

WHAT: Enrolled Agents from across California meet with their state legislators to discuss pressing taxation issues that affect all Californians. California conformity with Federal tax law has long been a priority of CSEA. The non-conformity of California tax law to Federal tax law has become completely unmanageable. The cumbersome complexities of non-conformity continue to burden taxpayers, tax professionals and tax administration. The passage of Proposition 26 on November 2 has a dramatic effect on conformity. Proposition 26 amended the California Constitution, requiring a two-thirds majority for enactment of any tax increase. What Proposition 26 also includes is that any new tax increase provision adopted after January 1, 2010 without a two-thirds majority (unless re-enacted by a two-thirds majority) will be repealed, effective November 3, 2011. Since most conformity measures include tax increases as well as decreases, Proposition 26 essentially eliminates any reasonable expectation for future conformity legislation.  

SB 401, a revenue-neutral partial conformity bill enacted last April (thus after January 1, 2010), contains tax increase provisions and is now subject to repeal in its entirety. The implications of SB 401 repeal are unclear (legal opinions are pending) due to differing interpretations. It is possible that taxpayers who benefitted from the California principal residence COD exclusion on their 2009 tax returns will be legally required to file amended returns without the exclusion, since the exclusion was available as a provision of SB 401.

Enrolled Agents are tax professionals who are licensed by the federal government to represent taxpayers and assist them with tax planning and the preparation of tax returns. Unlike CPAs or attorneys, Enrolled Agents specialize in taxation itself.  With the constant changes affecting the tax codes in California, it is imperative to have a professional assisting you who specializes in taxes. This legislative day will enhance awareness of these important tax professionals among members of the legislature and other government officials.

WHEN: Friday, January 7, 2011, 8:30 am- 4:00 pm

WHERE: California State Capitol, Sacramento

SOURCE California Society of Enrolled Agents