CA tax

California Tax Updates for July 8th

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Post 1:

Interest rates set on overdue payroll tax in California. For the period beginning July 1, 2020, through Dec. 31, 2020, the rate will be 5% compounded daily, according to the CA Employment Development Department. The rate is adjusted semiannually.

Post 2:

A California apparel designer loses a tax credit fight in court. CA companies that engage in qualified research and development (R&D) activities may be entitled to a credit on their CA tax returns. In one case, a women’s apparel design company filed for tax refunds for 2008 through 2011, based on claims for R&D credits in those years. The credit related to projects, which the CA Franchise Tax Board (FTB) said didn’t satisfy a requirement known as the experimentation process test. The credits were disallowed. The taxpayer sought a rehearing in the CA Office of Tax Appeals. The Appeals Court agreed with the FTB and upheld the decision to disallow the credit. (Swat-Fame, Inc. 5/20/20) If you […]

By |July 8th, 2020|ca, CA tax, california, payments, research credit, tax credit|0 Comments

California Tax Updates for June 25

August Calendar

Update 1:

Many California businesses are downsizing or have closed permanently due to COVID-19. The California Franchise Tax Board (FTB) has released a detailed set of steps needed to fully close a CA business entity, including links to resources from the CA Secretary of State and other state departments. The FTB highlights the need to close out tax accounts by filing delinquent returns and paying all balances due on taxes, filing a current annual or quarterly return as final, filing the appropriate closure forms with different state agencies, notifying employees and other stakeholders of the intent to close and dissolving all accounts associate with the business. For more: https://bit.ly/37e3cjI

Update 2:

Businesses that hold unclaimed property in California get extra time to file reports. Due to COVID-19, the CA State Controller (SCO) has postponed the due date for holders of such property, including unclaimed wages, to submit their Remit Reports and Remittances for properties reported on their […]

By |June 25th, 2020|business, ca, CA tax, ftb, New Tax Laws|0 Comments

California Tax Updates for June 18

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Post 1:

Have you wondered what the California Taxpayers’ Rights Advocate actually does? The CA Dept. of Tax and Fee Administration just released a report highlighting the accomplishments of the Taxpayers’ Rights Advocate’s Office (TRAO). The annual report for 2018 through 2019 gives examples of the services it provides, and information about the tax appeals assistance programs. Also listed are the goals of the Advocate, including a primary goal of ensuring that taxpayers contacting the office with issues that haven’t been resolved through normal channels have their concerns promptly and fairly addressed. Here’s the TRAO report: https://bit.ly/37cwSxS

Post 2:

California sales and use tax deadlines are coming up soon. The CA Dept. of Tax and Fee Administration (CDTFA) reminds sales and use taxpayers that June 24, 2020, is the filing due date for the May 1 through June 15, 2020 prepayment; and June 30, 2020, is the […]

By |June 18th, 2020|business, ca, CA tax, california, sales tax|0 Comments

California Tax Updates for June 12

Sales tax. Papers on the office table.

Update1:

Business owners in some California counties may file their business property statements electronically, due to the COVID-19 pandemic. The CA State Board of Equalization (SBE) informed county assessors that they could choose to accept electronically filed business property statements, if assessors submit proper procedures to the SBE for approval. The SBE strongly encourages each County Assessor to accept electronic filing in light of Governor Gavin Newsom’s stay-at-home order issued March 19, 2020. Contact your Linkenheimer CPA with questions about filing in your county.

Update 2:

New sales and use tax changes take effect soon in California. Effective July 1, 2020, the tax rate changes apply only within indicated city limits, said the CA Dept. of Tax and Fee Administration (CDTFA). The tax rates, tax codes and acronyms will be available to view and download on July 1, 2020, on the CDTFA website. Rates are organized into two categories: 1. District tax rate increasing, subdivided […]

By |June 12th, 2020|ca, CA tax, New Tax Laws|0 Comments

California Tax Updates for May 21st

FAQ

Update 1:

Do you still have questions about how California helps those affected by the novel coronavirus (COVID-19) pandemic? The CA Franchise Tax Board (FTB) has just updated its frequently asked questions (FAQs) by adding a section on the individual status letter (also known as a veteran affairs status letter). These letters help individuals get student loans or Veteran Affairs financing. They also show third parties such as employers that the letter holder has no outstanding CA income tax obligations. If you have questions, please contact your Linkenheimer CPA. You can also learn who may obtain an individual status letter and how, and get answers to a wide variety of questions by visiting the FTB here: https://bit.ly/2AuMxwb 

Update 2:

Are you part of the California gig economy? The CA Franchise Tax Board (FTB) has updated its gig economy webpage, which it created to provide information to those who use platforms such as Uber, Lyft, Airbnb and […]

By |May 21st, 2020|ca, CA tax, california, ftb|0 Comments

California Tax Updates for April 15th

Post 1:

Special tax relief is available for certain filing and payment deadlines, said the California Franchise Tax Board (FTB), in response to the coronavirus (COVID-19). The FTB has posted on its website a spreadsheet of certain filing and payment deadlines for all individuals and businesses entities. The spreadsheet has been updated to include information on real estate withholding, nonresident, nonwage, withholding and foreign partner or member withholding. https://bit.ly/2yoWpGK

Post 2:

Small California businesses get interest-free payment plans for sales tax, effective April 2. Governor Gavin Newsom is allowing businesses with sales less than $5 million to defer payment of sales and use taxes, up to $50,000, for up to 12 months, said the CA Dept. of Tax and Fee Administration (CDTFA) (other help may also be available for larger tax liabilities). For taxpayers choosing to defer their first quarter 2020 liability, for example, their tax liability would be paid in 12 monthly installments, with the […]

By |April 15th, 2020|business, ca, CA tax, california, New Tax Laws, tax deadlines|0 Comments

IRS FAQs Address 90-day Filing and Payment Extension

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The IRS has released a set of Frequently Asked Questions (FAQs) that clarifies certain aspects of the 90-day filing and payment extension provided in Notice 2020-18. Among other things, the FAQs explain that Notice 2020-18 postpones the filing and payment of federal income taxes reported on Form 1040, Form 1041 , Form 1120, Form 8960, Form 8991 , and Form 990-T (if that form is due to be filed on 4/15/20). The due date has not been postponed for Form 1065, Form 1065-B , Form 1066, Form 1120-S, payroll taxes, excise taxes, estate and gift taxes, and Form 990-T (if that form is due 5/15/20). The FAQs also provide that the deadline for making contributions to an IRA, HSA, or Archer MSA for 2019 has been extended to 7/15/20. The IRS continues to consider additional guidance on these issues and cautions taxpayers that FAQs are not citable as legal authority. The FAQs can be accessed at www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers If you have questions about how these changes may effect you and your business, please contact your Linkenheimer CPA.

Coronavirus (COVID-19) Tax Relief and California Updates

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As we mentioned in our last post, taxpayers now have more time to file their tax returns and pay any tax owed because of the coronavirus (COVID-19) pandemic. The Treasury Department and IRS announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer making federal income tax payments, which are due on April 15, 2020, until July 15, 2020, without penalties and interest, regardless of the amount they owe. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. They can also defer their initial quarterly estimated federal income tax payments for the 2020 tax year (including any self-employment tax) from the normal April 15 deadline until July 15.

No forms to file

Taxpayers don’t need to file any additional forms to qualify for the automatic federal tax filing and payment relief to July 15. However, individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868. Businesses who need additional time must file […]

Supporting You During the Coronavirus

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Dear clients, friends and community,

We understand there is a lot of anxiety and stress caused by the unprecedented coronavirus pandemic that is affecting the local and global community. As Sonoma County and the Bay Area have been put under a shelter in place order, we are doing everything we can to look after the health and safety of our staff and clients. We want you to know we are standing by your side during this crisis.

Certain essential businesses such as providers of healthcare, food, supplies, and financial services are exempt from the shelter in place order.  Because of the clients served by Linkenheimer LLP, we are also exempted from the order as an essential services provider. That being said, we are implementing strategies to reduce contact and mitigate exposure.

Currently, our offices will remain open during regular business hours. However, for the protection and health of our staff, clients and community we are implementing a strategy that involves most of our staff working from home. We are also asking documents be sent to us electronically, rather than delivered in person. In person meetings, when possible, should be conducted electronically, whether via video […]

Do You Have a California Business That Collects Sales Tax?

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California businesses that collect sales tax from customers must correctly report the sales and remit the tax on time or face a possible 25% fraud penalty. The CA Dept. of Tax and Fee Administration (CDTFA) found that one restaurant owner significantly underreported sales and underpaid the related sales tax. On that basis, the CDTFA determined that he was not only subject to the 25% fraud penalty, but that he also met the criteria for a higher penalty of 40%. That is, evidence showed he knowingly collected sales tax to be remitted and failed to remit the full tax collected; also, the amount exceeded an established threshold. The CA Office of Tax Appeals upheld the penalty. If you have questions, please contact your Linkenheimer CPA.

By |December 11th, 2019|business, ca, CA tax, sales tax|0 Comments