ca

California Tax Updates for July 8th

Mail.

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

Megaphone Hand, business concept with text Tax time. Vector illustration

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

Do You Have a California Business That Collects Sales Tax?

wooden gavel and money on white background. Isolated 3D illustration

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

Minimum Wage Raised in City of Petaluma

Pay Raise Green Road Sign

A local minimum wage raise is coming for employees of the City of Petaluma. Effective Jan. 1, 2020, the hourly minimum wage rate for employers with 26 or more employees will be $15.00, and $14.00 for employers with fewer than 26 employees. By ordinance, the minimum wage must be adjusted annually, based on the Bay Area Consumer Price Index. This ordinance applies to all employees who work two or more hours per week in Petaluma and are covered by state minimum wage law. It doesn’t apply to federal, state or county agencies or school districts. A youth minimum wage rate applies to those who are ages 14 to 17 during the first 160 hours of employment in occupations new to them. If you have any questions, please contact your Linkenheimer CPA.

By |December 3rd, 2019|ca, CA tax, california|0 Comments

Affected by the Power Outages? Tax Relief May Be Available.

Flashlight and beam of light on a dark background

Some tax relief is available for California taxpayers affected by the frequent power shutoffs that plague the state. The CA Franchise Tax Board is advising taxpayers impacted by the safety-related power blackouts that began in October 2019 that they may be eligible for penalty relief if the penalties are due to the shutoffs. Taxpayers in impacted counties may request penalty abatement upon a showing of reasonable cause. For details, go to https://bit.ly/2PzCN9r and arrow down to “Extended deadlines.” If you have questions about how the shut offs may have affected you or your business with concerns related to tax payments or penalties, please contact your Linkenheimer CPA. 

Certain California Residents May Soon Be Contacted By a State Tax Agency

Stand up woman holding white folded a4 paper and brown envelope

Beginning in late September and during October 2019 the CA Franchise Tax Board (FTB) will be sending 66,500 Notices of Assessment to taxpayers who filed as head-of-household but don’t qualify for that status. Taxpayers who disagree with the Notice of Proposed Assessment may log onto https://bit.ly/2k5JFOs. You may need to create an account. Or, contact the FTB by mail at Franchise Tax Board, PO Box 942840, Sacramento, CA 94240-5340, to file a protest. If you have questions, please contact your Linkenheimer CPA with questions.

By |September 18th, 2019|ca, CA tax|0 Comments