Informational returns.

Existing law requires specified persons to file informational returns with the Franchise Tax Board and authorizes the Franchise Tax Board to require persons that file specified federal returns to file copies of those returns with the state. This bill would require a person that files a Form 1099 with respect to a nonresident who performed services within the state and a person required to file a Form 6050W to file a duplicate of that form, respectively, with the Franchise Tax Board, under specified circumstances. The bill would additionally require a third-party settlement organization to report to the Franchise Tax Board, and any participating payee with an address within the state, any information required by Section 6050W of the Internal Revenue Code with respect to the third-party network transactions related to that participating payee, as provided, and would lower the de minimis threshold for that information, as provided. The bill would authorize the Franchise Tax Board to accept electronic filing of those forms. Because the failure to provide information required under these provisions would be a crime, under specified conditions, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.