California made a number of amendments to the state’s tax laws, affecting out-of-state taxpayers whose tax year began on or after January 1, 2011. As a result of these amendments, many out-of-state taxpayers will now be subject to California taxes. The changes impose significant information and record-keeping burdens on upper-tier partners as well as members of partnerships and LLCs. In order to avoid penalties and interest on the unpaid taxes, out-of-state taxpayers should determine whether they are now subject to the new California rules, and thus required to pay the estimated California minimum tax by June 15, 2011.
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