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California Tax Updates for 4/21

Update 1:

Employers in California who have questions about the Paycheck Protection Program (PPP) get some answers. The April edition of the CA Franchise Tax Board’s “Tax News” addresses whether CA will conform to the federal rules with respect to the PPP, which is part of the CARES Act. The Tax Board said that while income from PPP loan forgiveness is excluded for CA purposes, any credit or deduction allowed for any amount paid or incurred should be reduced by the amount of the exclusion allowed under the PPP. If other changes in CA law related to the PPP arise, the Tax Board will present the new information in its “Tax News.” Here’s more: https://bit.ly/2QsCO19

Update 2:

The 2020 tax year has brought changes to many California tax forms and instructions. That’s why the CA Franchise Tax Board (FTB) has created a tax forms webpage to describe the revisions it has made. Most of the […]

By Linkenheimer LLP|2021-04-21T23:34:09+00:00April 21st, 2021|business, ca, CA tax, california|0 Comments

Tax Day for Individuals Extended to May 17: Treasury, IRS Extend Filing and Payment Deadline

The Treasury Department and Internal Revenue Service announced on Wednesday that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, […]

By Linkenheimer LLP|2021-03-19T17:56:36+00:00March 19th, 2021|ca, CA tax, california, ftb, irs, tax deadlines|0 Comments

California Tax Updates for 3/17

Post 1:

New California sales and use tax rates take effect on April 1, 2021. The CA Dept. of Tax and Fee Administration (CDTFA) has announced new rates that were approved by CA voters in November 2020. The new tax rates apply only within the indicated city or county limits. The new rates, tax codes, acronyms and expiration dates will be available to download and view before April 1, 2021, on the CDTFA webpage. They have been organized into three categories, by city, county and unincorporated areas. Here’s more: https://bit.ly/3sZfXIR

Post 2:

California’s Franchise Tax Board (FTB) has announced the 2021 mailing of CA Golden State Stimulus payments. This is a one-time payment of $600 or $1,200 to eligible recipients. Those eligible are taxpayers who have filed a 2020 tax return, has CA adjusted gross income of $75,000 or less, is either a CA earned income tax recipient or filer with an individual taxpayer identification […]

By Linkenheimer LLP|2021-03-17T18:22:36+00:00March 17th, 2021|ca, CA tax, california, ftb|0 Comments

California Tax Updates for February 17th

Update 1:

California’s Franchise Tax Board (FTB) has reopened. In a public service bulletin the FTB announced that beginning Feb. 1, 2021, its field offices and their public counter operations reopened to assist customers by appointment only. Requests for appointments can be made by contacting the field office directly by phone (here’s the link with phone numbers: https://bit.ly/3oXd0WN) or by sending an email to: FTBFieldOfficeAppointments@ftb.ca.gov

Update 2:

Interest rates on unpaid or underpaid taxes in California will remain unchanged for the second half of 2021. The CA Dept. of Tax and Fee Administration (CDTFA) has announced that the interest rate on taxes that are unpaid or underpaid remains at 6%. The interest rate on overpayments and refunds will remain at 0%, for taxes and fees administered by the CDTFA. These taxes include: sales and use tax, cigarette and tobacco products tax, hazardous substances tax, alcoholic beverage tax, […]

By Linkenheimer LLP|2021-02-17T17:23:33+00:00February 17th, 2021|ca, california, ftb, New Tax Laws|0 Comments

FTB Notices Regarding 2019 Tax Return Change

We will likely see an increase of FTB notices over the next few weeks for individuals that made 2019 CA extension payments after 4/15/2020. Our firm recently called on two notices and per the FTB representative, 2019 extension payments received after 4/15/20 automatically got applied to 2020 due to a system limitation. This will result in a difference between tax paid per the return filed and FTB records equal to the extension payment (and a notice indicating this). The FTB is in the process of applying 2019 extension payments received after 4/15 to 2019 and no action is needed. If you have questions, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2020-12-30T22:24:09+00:00December 30th, 2020|CA tax, estimated tax payments, extension, extensions, ftb|0 Comments