In these challenging times we are all looking for help in so many ways.
So, we are pleased to share some good news for California businesses required to file sales and use tax returns.
On April 2nd, the State of California announced that it is providing the following COVID-19 sales and use tax relief:
- For first quarter 2020 sales and use tax returns the original due date of April 30, 2020, has been extended to July 31, 2020 for all taxpayers who file a return for less than $1 Million dollars. This extension is automatic, no application is required for the extension.
- For taxpayers required to file an annual use tax return, the 2019 use tax return’s original due date of April 15, 2020, has been extended to July 15, 2020 for all taxpayers who file a return for less than $1 Million dollars. This extension is automatic, no application is required for the extension.
- For taxpayers with a tax liability of $1 Million or more, you may still request an extension if you are unable to file and pay timely, but the request will be evaluated on a case-by-case basis. For instructions on how to make the request please click here.
- Other taxpayers who are required to file excise taxes and fees are also receiving extensions. For more information, click here.
California is also doing its parts to aid qualifying small businesses by offering interest-free payment plans to certain taxpayers. Small business taxpayers with less than $5 Million in taxable annual sales can take advantage of a 12-month, interest-free, payment plan for up to $50,000 of sales and use tax liability. The State will be using the extended due dates to work out the details for the application process for these interest-free payment plans. Taxpayers with liabilities greater than $50,000 may also apply for payment plans, but the interest-free portion of their plan will only apply to liabilities up to $50,000; interest will be due on amounts greater than $50,000.
There are still many details that need to be worked out related to the payment plans, so the State is working on a list of FAQs that it will be posting on its webpage.
Everything is changing fast these days, including taxes, so we are doing our best to stay on top of all the news related to sales and use taxes. Our goal is to do our part to help you with sales and use taxes, so you can focus on other areas that are impacting your businesses.
