Income taxes: administration: nonresident aliens: identifying numbers: group filing.

The California Assembly Committee on Revenue and Taxation proposes permanent changes to state tax filing requirements for nonresident aliens through legislation that removes the January 2026 sunset date from existing temporary provisions. The measure maintains the current prohibition on requiring Social Security numbers or Individual Taxpayer Identification Numbers from nonresident aliens who are ineligible for these identifiers when filing state tax returns.

Under the bill's provisions, the Franchise Tax Board must continue accepting group tax returns filed by employers on behalf of qualifying nonresident alien employees who perform services in California. These group filings are subject to the state's highest marginal tax rate plus an additional one percent, with limited allowable deductions and credits. Employers filing group returns retain responsibility for making tax payments, including any penalties and interest, on behalf of participating nonresident aliens.

The legislation preserves the existing framework allowing the Franchise Tax Board to request documentation if a nonresident alien later obtains a Social Security number or Individual Taxpayer Identification Number. It also maintains the board's authority to adjust reported income on group returns to ensure accurate tax assessment under state law. The measure includes technical amendments aligning various code sections with the permanent authorization of these filing procedures.