What is the California Mandatory e-file?
California law requires tax practitioners who prepare more than 100 California individual income tax returns annually and prepare one or more using tax preparation software to e-file all personal income tax returns. This measure reduces tax return processing costs for the State. 3. Does a sole proprietor need to have a tax ID number? As long as a sole proprietor does not have any employees, and does not file excise or pension plan tax returns, the sole proprietor does not need to have a tax ID number. 4. What is a tax deductible business expense under federal income tax law? Basically, any business related ordinary, necessary, and reasonable expense may be deductible. However, the law does prohibit certain expenses. To be sure, check the Code and/or talk to your legal counsel. 5. Can I deduct business expenses if I work out of my home? Certain criteria must be met in order to deduct business expenses if you work out of your home. For example, to deduct business expenses for the part of
