Listed in this article are the summary of California’s tax filing and payment relief in response to COVID-19 Pandemic.
CALIFORNIA FRANCHISE TAX BOARD RELIEF FOR INCOME TAX FILING AND PAYMENT
Across the board, all business and government were significantly affected by the COVID-19 pandemic. This has led many businesses and state and local agencies to prepare and provide plans for every contingency in a national emergency that might hurt their operations.
State tax authorities are working to respond to the public health crisis that impacts the taxpayers and their employees. They are addressing the possible inability of the taxpayers to file tax returns and pay tax dues and those that are in the administration to process the filings due to the said pandemic. These authorities are grappling with the issue daily and are rapidly releasing new provisions.
On March 18, 2020, The Franchise Tax Board (FTB) announced updated special tax relief for all California taxpayers due to the COVID-19 pandemic. FTB is postponing until July 15 the filing and payment deadlines for all individuals and business entities for:
- 2019 tax returns
- 2019 tax return payments
- 2020 1st and 2nd quarter estimate payments
- 2020 LLC taxes and fees
- 2020 non-wage withholding payments
Since California conforms to the underlying code sections that grant tax postponements for emergencies, FTB is extending the relief to all California taxpayers. Taxpayers do not need to claim any special treatment or call FTB to qualify for this relief. This announcement supersedes last week’s announcement.
If possible, taxpayers should continue to file tax returns on time to get their refunds timely, including claiming the Earned Income Tax Credit and Young Child Tax Credit. During this public health emergency, FTB continues to process tax returns, issue refunds, and provide phone and live chat service to taxpayers needing assistance.
More information regarding this relief is available here.
CALIFORNIA DTFA SALES/USE TAX & OTHER TAX AND FEE RELIEF
The California Department of Tax and Fee Administration (CDTFA) said it is authorized under the Governor’s COVID-19 Executive Order to assist individuals and businesses impacted by the COVID-19 pandemic through May 11, 2020. Individuals and businesses impacted by COVID-19 may seek filing and payment extensions, relief from interest and penalties, and filing claims for refund, applicable to all tax types administered by the CDTFA. Taxpayers may request assistance by contacting the CDTFA. Relief requests can be made online or by mail.
See the CDTFA’s website for more information on how to request such relief.
CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT EMPLOYMENT TAXES RELIEF
Employers directly affected by COVID-19 may request up to a 60-day extension to file their state payroll reports and/or deposit payroll taxes without penalty or interest. The EDD must receive a written request for extension within 60 days from the original delinquent date of the payment or return. Taxpayers may visit the Emergency and Disaster Assistance for Employers page for more information.
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. It is not intended to be relied upon as accounting*, tax, or other professional service. Please refer to your advisors for specific advice. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.