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

The California Assembly Committee on Revenue and Taxation proposes to permanently extend several tax provisions affecting nonresident aliens that were set to expire on January 1, 2026. The legislation maintains existing rules that allow nonresident aliens to file state tax returns without providing a Social Security Number or Individual Taxpayer Identification Number if they are ineligible for or have not been issued one.

The bill preserves the current group filing mechanism, which enables taxpayers or authorized entities to submit consolidated returns on behalf of qualifying nonresident aliens who earn taxable income from services performed in California. Under these provisions, the highest marginal tax rates apply to income reported on group returns, with limited deductions and credits available. The filing entity assumes responsibility for tax payments, interest, and penalties on behalf of participating nonresident aliens.

The legislation also maintains existing rules that exclude from gross income any payments made by an agent on behalf of nonresident aliens participating in group filings. These provisions aim to streamline tax administration while preserving compliance requirements for nonresident taxpayers and their representatives.