FTB Tax Registration Program FAQs

FTB(Franchise Tax Board) Tax Registration Program FAQs
1. What is the FTB Tax Registration program?
With passage of SB 1146, the California Franchise Tax Board (FTB) is authorized to share certain tax records related to the business activities of residents, corporations and other entities within cities. The City can identify unregistered businesses by matching FTB data to existing City business license records.  The FTB is authorized to share certain tax records related to the business activity of sole proprietorships, corporations, partnerships, or limited liability companies. Cities use the FTB information to cross check against city business license records and can identify unregistered/unlicensed businesses.
2. Why did I receive a letter?
City records show that you reported to FTB business activity and claiming deductions for a business in Carson and you may be required to obtain a Business License and pay business taxes.  The City of Carson was notified by the FTB that your filed tax return reported a business activity in the City. All business activity conducted in Carson, whether from a residence (rented or owned) or at a commercial location is required to obtain a business license.
3. What happens if I do not respond?
You may be in violation of Carson Municipal Code (”CMC”) Section 6310 and if so, your account could be assessed penalty fees and submitted to small claims court or other legal action.
4. What is the definition of a business according to the CMC?
Section 6303 defines a business as all kinds of vocations, occupations, professions, enterprises, establishments, and all other kinds of activities and matters, conducted for a gain, benefit or advantage to the taxpayer, whether or not a profit is actually earned.
5. If I receive a Form 1099-MISC from work I performed, do I need a Carson business license?
Yes, Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee. Persons performing such work are considered Independent Contractor and as such are required to obtain a Carson business license. 
6. What if I conduct a business from my home address, do I  need to have a business license?
Yes.  All businesses whether based out of a residence or commercial location are required to obtain a business license.
7. I have a part-time business (for example, drive for Uber/Lyft).  Do I need a Carson business license?
Yes, if the consulting work is performed and attributable to a location within Carson, such as your residence, a Carson Business License is required If you live in Carson, a business license is required, regardless if the majority of your work is conducted in other cities.
8. I received this letter but I no longer have a business.  What should I do?
If you previously had a business located in Carson but never obtained a business license, you are still liable to pay the business tax for the year(s) the business was operational in Carson.
9. How often must I renew my business license? 
If you previously conducted business in Carson and never registered your business with the City, you are liable for business taxes for the year(s) that you operated a business. Business license renewal invoices are mailed and must be paid within 60-days after the expiration date. Accounts are delinquent if payment is not received within the 60-day grace period and those accounts are assessed a 25% penalty fee.  If payment is not received within 90-days passed the expiration date, a 50% penalty is assessed.
10. What if I have other questions?
Annually. A business license must be paid within 60 days of its annual renewal date. If payment is not received after approximately 62 days, a 25% penalty is assessed. If payment is not received after approximately 90 days, a 50% penalty is assessed.  You can contact Business License staff at (310) 952-1748 or via email at revenue@carson.ca.us. City Hall is open Monday through Thursday, 7:00 a.m. to 6 p.m., closed every Friday, Saturday, Sunday, and holidays.
 

 

The City is committed in assisting our business partners and community, while maintaining the integrity of adhering to the Carson Municipal Code. The Business License Municipal Code Article VI Chapter 3 can be located at http://www.codepublishing.com/CA/Carson/.

 

 

 

 

City Hall Contact

701 E Carson Street
Carson, CA 90745
(310) 830-7600, 7 AM - 6 PM
Monday - Thursday
24-hour automated: (310) 952-1700

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