Tax Planning in the Wake of COVID-19
PART ONE: CALIFORNIA TAX RELIEF
The California Franchise Tax Board (FTB), administrators of the state’s Personal Income Tax and the Corporation Tax programs, has announced their initial relief plans for California taxpayers affected by the COVID-19 pandemic. In accordance with the Executive Order issued by Governor Newsome on March 12th, the following extended deadlines and other changes now apply:
- Partnerships and LLCS taxed as partnerships with March 15 due dates receive a 90-day extension to file and pay by June 15, 2020
- Individual filers with tax returns due April 15 receive a 60-day extension to file and pay by June 15, 2020
- Quarterly estimated tax payments due April 15 receive a 60-day extension to file and pay by June 15, 2020
- The FTB will waive interest and late filing and payment penalties that would otherwise apply
The FTB also issued the following instructions for tax-payers:
“Taxpayers claiming the special COVID-19 relief should write the name of the state of emergency (for example, COVID-19) in black ink at the top of the tax return to alert FTB of the special extension period. If taxpayers are e-filing, they should follow the software instructions to enter disaster information.”
These changes are contingent upon federal guidance and due dates may be pushed back later if the Internal Revenue Service grants longer relief periods. To date, such guidance has not been finalized by the U.S. Treasury Department.
If you have any questions regarding the new filing dates, the status of filings, or other tax issues please reach out for a consultation.