Update 1:

Wildfire victims in parts of California now have until Jan. 3, 2022, to file certain tax returns and make tax payments. In August 2021, CA granted extensions to individuals and businesses affected by wildfires. They were originally given until Nov. 15, 2021 to complete these tasks. The IRS has now extended that deadline to Jan. 3, 2022. This deadline also applies to the quarterly payroll and tax returns normally due on Aug. 2, 2021, and Nov. 1, 2021. In addition, penalties on payroll tax deposits due on or after July 17, 2021, but before July 29, 2021 will be abated as long as the deposits were made by July 29, 2021.

Update 2:

New rates for California’s cannabis cultivation tax have been posted for 2022.The CA Dept. of Tax and Fee Administration (CDTFA) lists the following: cannabis flower, $10.08 per dry-weight ounce; cannabis leaves, $3.00 per dry-weight ounce; and fresh cannabis plants, $1.41 per ounce. Rates for cannabis cultivation tax are subject to an annual adjustment for inflation. Here’s a link to the CDTFA website: https://bit.ly/3kM7g2y

Update 3:

Effective Jan. 1, 2022, a new local tax known as the Overpaid Executive Tax (OET) takes effect in one California city. It was approved by San Francisco voters on Nov. 3, 2020, and imposes an additional tax of 0.1% to 0.6% on taxable gross receipts of certain businesses. Affected businesses are those in which the highest-paid managerial employee earns more than 100 times the median compensation of employees based in San Francisco. Also, businesses that pay the Administrative Office Tax will pay an additional 0.4% to 2.4% on their payroll expense in San Francisco in lieu of the added gross receipts tax. The OET is filed as part of the Annual Business Tax Return.

Contact your Linkenheimer CPA with questions.