Asked by J
How would a California municipality know if there are residents who failed to obtain a business license? By participating in:
The California Employment Development Department's City Business Tax Program.
The Franchise Tax Board's City/County Business Tax Program.
The Internal Revenue Service's City Business Tax Program.
Their county's City Business Tax Program.
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Answered by
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The Franchise Tax Board's City/County Business Tax Program.
Explanation: the FTB runs a City/County Business Tax Program that provides local governments with lists of state-registered businesses to help identify unlicensed operators. The IRS cannot freely disclose federal taxpayer data, and counties do not run a statewide "City Business Tax Program" like the FTB program. (EDD has employer data programs too, but the specific program for identifying unlicensed local businesses is the FTB City/County Business Tax Program.)
Explanation: the FTB runs a City/County Business Tax Program that provides local governments with lists of state-registered businesses to help identify unlicensed operators. The IRS cannot freely disclose federal taxpayer data, and counties do not run a statewide "City Business Tax Program" like the FTB program. (EDD has employer data programs too, but the specific program for identifying unlicensed local businesses is the FTB City/County Business Tax Program.)
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