Instructions For Form Ftb 4800 - Franchise Tax Board - State Of California

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STATE OF CALIFORNIA
FRANCHISE TAX BOARD
PO BOX 1998
B1
SACRAMENTO CA 94267-1998
Interest or interest-dividends paid on non-California municipal bonds during 2000 to individuals or
partnerships with a California address must be reported to the California Franchise Tax Board.
The filing requirement applies whether the bond is held directly by the individual or partnership,
through a mutual fund, a money market fund, a unit investment trust, or another financial
investment vehicle.
Effective January 1, 1997, California Revenue and Taxation Code Section 18639 requires an
information return from payers paying interest or interest-dividend income on federally tax exempt
bonds issued by non-California governmental entities (municipal bonds). Examples include bonds
issued by counties, cities, sewer facilities, and education boards that are located outside
California. Payments of interest or interest-dividends aggregating $10 or more on these types of
municipal bonds paid to individuals or partnerships with a California address must be reported.
The filing requirement is applicable for payments of interest made on or after January 1, 1997 (for
1997 or subsequent tax years).
Payments of Interest income must be reported on a per bond basis and each bond is to be
identified by the CUSIP number. The format specifications for each record are similar to IRS
specifications contained in IRS Publication 1220 (REV 7-2000) that covers Revenue Procedure
2000-25. Exceptions to the IRS specifications are listed on page 2 of this letter. For payments of
interest-dividends, report the total distribution to each shareholder instead of CUSIP numbers or
individual bond information. Also, provide the percentage of the fund’s portfolio income distribution
attributable to bonds of California, Puerto Rico, Guam, and the Virgin Islands. Formatting
instructions for these reports are detailed in subsequent pages.
You are required to inform payees by January 31, 2001, that this information is being reported to
the California Franchise Tax Board.
Please provide the name, telephone number, and mailing address of your company’s customer
service representative. Your customers who have questions concerning information you provided
will be referred to this person.
If you are a non-clearing firm or do not maintain you own accounts, please forward this request to
the firm that services your accounts. It is not necessary for you to inform us that you have
forwarded the request.
Our filing requirement is patterned after New York State’s information return filing requirement,
which has been in place for about ten years. Although it is only three years old in California, the
financial services industry has developed a track record of reporting this information. Many of
these institutions either have, or are in the process of developing, software to report the required
information to us.
FTB 4800 (REV 12-2000) PAGE 1

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