As we navigate through the second quarter of the year, it’s crucial to stay on top of your tax obligations to ensure smooth financial operations and compliance. In particular, we’d like to draw your attention to four important matters: Q2 estimate payments, the California Pass-Through Entity (PTE) elective tax payment, S-Corp estimated payments, and Form 3536 for LLC fees.

Q2 Estimate Payments: For those of you who are required to make quarterly estimated tax payments, the deadline for the second quarter is swiftly approaching. If you are self-employed, a freelancer, a sole proprietor, or have other sources of income not subject to withholding, you likely need to make estimated tax payments to cover your tax liabilities.

The due date for Q2 estimate payments is June 17, 2024, since June 15 falls on a weekend this year. Missing this deadline can result in penalties and interest charges, so it’s essential to ensure your payment is submitted on time. If you need assistance calculating your estimated tax liability or determining the appropriate payment amount, please don’t hesitate to reach out to us. We’re here to help you navigate the complexities of tax compliance and ensure you meet your obligations without any unnecessary stress.

California Pass-Through Entity (PTE) Elective Tax Payment: If you are a partner in a partnership or a shareholder in an S-corporation that conducts business in California, you may be eligible for the state’s Pass-Through Entity (PTE) elective tax payment. This elective tax allows qualifying pass-through entities to pay a state tax at the entity level, which can provide a federal deduction that may benefit the owners on their personal tax returns.

The PTE elective tax payment for California is an important consideration for many businesses, as it can potentially reduce the overall tax burden for the owners. It’s important to review your situation to determine whether making this elective payment is advantageous for you and to ensure compliance with California tax laws.

The PTE elective tax payment deadline for 2024 is June 17, 2024. Timely payment is crucial to take advantage of this potential tax benefit and to avoid any penalties or interest.

S-Corp Estimated Payments: For S-Corporations, the Q2 estimated tax payments are also due on June 17, 2024. Ensuring timely estimated payments is crucial to avoid penalties and interest. Our team can assist you in determining the appropriate estimated tax payment to meet your obligations.

Form 3536 for LLC Fees: For LLCs, it’s essential to remember the requirement to file Form 3536 and pay the LLC fee by June 17, 2024. This fee is based on the total income from all sources derived from or attributable to California. Failing to file and pay on time can result in penalties and interest.

If you have any questions or concerns regarding your Q2 estimate payments, the PTE elective tax payment, S-Corp estimated payments, or Form 3536 for LLC fees, please don’t hesitate to contact your Linkenheimer CPA. Our team of tax professionals is here to provide guidance, answer your questions, and assist you in navigating the intricacies of tax regulations.

Thank you for entrusting us with your tax and accounting needs.