Income taxes: administration: nonresident aliens: identifying numbers: group filing.

Plain English Breakdown

The official source material does not provide specific details on additional conforming changes made by the bill, only that they are related to the provisions mentioned.

Income Taxes: Rules for Non-Resident Aliens

This law extends rules allowing non-resident aliens without a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to file taxes in groups and not provide these numbers when filing state tax returns.

What This Bill Does

• Extends the rule allowing non-resident aliens who do not have an SSN or ITIN to avoid providing those numbers on their state tax forms.
• Allows non-resident aliens to continue filing group tax returns if they choose to, without a time limit.
• Excludes from taxable income any payments made by someone else (like an agent) on behalf of the non-resident in a group filing situation.

Who It Names or Affects

• Non-resident aliens who do not have an SSN or ITIN and file state taxes.
• The Franchise Tax Board, which collects California income tax.

Terms To Know

Social Security Number (SSN)

A unique nine-digit number issued by the Social Security Administration to U.S. citizens, permanent residents, and certain other eligible individuals for social security purposes.

Individual Taxpayer Identification Number (ITIN)

A tax processing number issued by the Internal Revenue Service to individuals who have a filing or payment requirement with the IRS but do not have and are not eligible to obtain an SSN.

Limits and Unknowns

• The bill does not specify when these rules will take effect.
• It is unclear how many non-resident aliens this law will affect.

Official Summary Text

AB 1518, Committee on Revenue and Taxation.
Income taxes: administration: nonresident aliens: identifying numbers: group filing.
The Personal Income Tax Law imposes a tax on the taxable income of an individual taxpayer subject to that law, and provides for specified treatment of the income of nonresidents. Existing law requires every taxpayer subject to tax under the law to file a return with the Franchise Tax Board, and requires specified identifying numbers to be included on state tax returns, statements, and other documents, including a federal social security number (SSN) or individual tax identification number (ITIN), unless otherwise provided.
Existing law, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, prohibits the Franchise Tax Board from requiring a nonresident alien, as defined, to provide an SSN or ITIN when filing a state tax return, statement, or other document if the nonresident alien is not eligible for or has not been
issued an SSN or ITIN. Existing law, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, also requires the Franchise Tax Board to provide for the filing of a group return for electing nonresident aliens, as specified, and excludes from gross income any payments made by an agent on behalf of a nonresident in a group filing.
This bill would extend indefinitely the prohibition on the Franchise Tax Board from requiring a nonresident alien to provide an SSN or ITIN, as described above, the requirement that the Franchise Tax Board provide for the filing of a group return for electing nonresident aliens, as specified, and the exclusion from gross income for any payments made by an agent on behalf of a nonresident in a group filing. The bill would make additional conforming changes related to these provisions.

Current Bill Text

Download Bill PDF