california

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

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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. 

California Announces the Property Tax Postponement (PTP) Program

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The California State Controller has announced it is taking applications from certain homeowners for property tax deferments. It’s called the Property Tax Postponement (PTP) Program. For the 2019-2020 tax year, homeowners who are seniors or blind, or have a disability, and who meet income, equity and other requirements, can postpone payment of property taxes on their primary residence. Manufactured homes are now also eligible. Funding is limited, and applications will be processed in the order received, beginning Oct. 1. Participants must reapply each year and prove they are still eligible. If you have questions, please contact your Linkenheimer CPA. For details of this new program, call (800) 952-5661 or visit the Controller’s website: https://bit.ly/2mrYGLp

By |October 2nd, 2019|property tax|0 Comments

New Application Period for a Valuable California Business Tax Credit

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Coming up soon is a new application period for a valuable California business tax credit. The CA Governor’s Office of Business and Economic Development has announced that, for fiscal year 2019-2020, a total of $236,808,527 in CA Competes Tax Credits is available.  Learn more about applying here:  https://bit.ly/2nxiNGc.  Applications will be accepted during the following periods: July 29 through August 19, 2019 ($90 million total); January 6 through January 27, 2020 ($75 million total); and March 9 through March 30, 2020 ($71.8 million, plus unallocated amounts from previous periods). This credit is an income or franchise tax credit available to businesses that come, stay or expand in CA. If you have questions or are interested in applying, please contact your Linkenheimer CPA.

By |July 22nd, 2019|business, tax credit|0 Comments

California Gives Veterans a Boost

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The CA Employment Development Dept. has awarded $5 million in Veterans’ Employment-Related Assistance Program grants. The grants are expected to help about 1,200 veterans secure jobs. “EDD is proud to provide California veterans with the tools they need to transition into sustainable careers,” said EDD Director Patrick W. Henning. “This funding will help train and prepare former military personnel for high-growth civilian jobs.” Grants will be used in these counties: Contra Costa, Los Angeles, Orange, Riverside, San Diego and Ventura. The funding is part of the federal Workforce Innovation and Opportunity Act. For more info: https://bit.ly/2Xxms9w

By |July 3rd, 2019|New Tax Laws|0 Comments

Don’t Forget: Tax Deadline is April 15th

If you’re a California resident who owes estimated CA tax payments, your next payment due date is rolling up fast. By April 15, the first installment of your 2019 state tax is due. Generally, you must make estimated payments if you expect to owe at least $500 for 2019, after you subtract withholding or credits you may have, or face penalties. To learn more about who is required to make estimated payments, how to pay, and how to obtain a handy worksheet to calculate the correct amount, click on https://bit.ly/2FJ03wl or contact your Linkenheimer CPA for help.

By |April 11th, 2019|tax deadlines, tax planning|0 Comments

Are you a California Employer Who Must File State Copies of W2s and 1099s?

Are you a California employer who must file state copies of W2s and 1099s? Returns that are paper-filed with the IRS will be forwarded to the CA Franchise Tax Board (FTB), so there’s no need for you to also file with the FTB. Generally, the IRS and FTB have the same filing requirements. If you have 250 or more returns, electronic filing with the FTB is required. The e-filing due date is 3/31/19. If you use the IRS Combined Federal/State Filing Program, only one filing is necessary. The IRS will forward original or corrected data to the FTB. If you have questions about filing, please contact your Linkenheimer CPA. 

By |March 20th, 2019|1099, business, CA tax, california, employer, ftb, w2|0 Comments

California Grants Disaster Relief to Certain Employers

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California grants disaster relief to certain employers. The CA Employment Development Dept. is giving affected employers extra time to file state payroll reports and to deposit state payroll taxes without penalty or interest. This applies to employers in Amador, Glenn, Lake, Mendocino and Sonoma Counties who were directly affected by storms that began on 2/25/19. These employers may request a 60-day extension of time to accomplish these tasks. Requests must be received within 60 days of the original payment or return due dates. If you have questions about this or other filing deadlines, please contact your Linkenheimer CPA. For details: https://bit.ly/2LyrD38

By |March 13th, 2019|business, california, employer, extension|0 Comments

How To Comply with California Use Tax

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What is Use Tax?

California’s sales tax generally applies to the sale of merchandise, including vehicles, in the state. California’s use tax on the other hand applies to the use, storage, or other consumption of those same kinds of items in the state. Generally, if sales tax would apply when you buy physical merchandise in California, use tax applies when you make a similar purchase without tax from a business located outside the state. For these purchases, the buyer is required to pay use tax separately. The sales and use tax rate in a specific California location has three parts: the state tax rate, the local tax rate, and any district tax rate that may be in effect.

What’s the Difference Between Sales Tax vs Use Tax? 

Tax collected by the retailer here in California is called sales tax, and the retailer is responsible for reporting and paying the tax to the state. When an out-of-state or online retailer doesn’t collect the tax for an item delivered to California, the purchaser may owe “use tax,” which is simply a tax on the use, storage, or consumption of personal property in California.

Items to Report Directly to CDTFA

Report use […]

By |February 28th, 2019|CA tax, sales tax|0 Comments

California Tax News Related to Wildfires

Tax relief is available for California employers in counties hit by recent wildfires. The CA Employment Development Dept. (EDD) has announced that employers in Butte, Los Angeles and Ventura counties directly affected by the Camp, Hill and Woolsey fires may request up to a 60-day extension of time from the EDD to file their state payroll reports and deposit state payroll taxes without penalty or interest. Written extension requests must be received within 60 days from the original delinquent date of the payment or return.

Due to a presidential disaster declaration, some victims of California’s recent wildfires may qualify for federal Disaster Unemployment Assistance (DUA). DUA provides temporary unemployment assistance to eligible individuals whose work or self-employment has been interrupted due to a major disaster and who also meet certain other conditions. This applies to losses in CA from the Camp, Hill, and Woolsey fires. Eligible persons may receive up to $450 per week for up to 27 weeks. The deadline to file is 12/14/18. If you have any questions, please contact your Linkenheimer CPA. For more info […]

By |November 21st, 2018|CA tax, california, disaster|0 Comments

Some California Taxpayers are Receiving Erroneous Late Notices

Some California taxpayers are receiving erroneous late notices. Taxpayers who reside in federally declared disaster areas have been granted extra time to accomplish state tax-related tasks, such as filing tax returns and paying taxes due. The CA Franchise Tax Board (FTB) has reported that, due to a systemic issue, some taxpayers who qualify for this relief have received notices assessing late-filing penalties. While the FTB works to update its system and address this issue, taxpayers can contact the FTB on its homepage and click live chat: https://bit.ly/2MG3HMz

If you have questions, you can also contact your Linkenheimer CPA.

By |October 2nd, 2018|disaster, ftb, irs, tax|0 Comments