California Department of Tax and Fee Administration (CDTFA) recently announced new relief provisions for filing of Sales Tax returns and payment of sales taxes in light of the COVID-19 pandemic.
Relief & Extensions for Filing Returns
Effective March 30, 2020 all taxpayers who file a return less than $1 Million dollars will have an additional 3 months to file their return, between now and July 31, 2020. If you qualify for this extension it is automatic and you do not need to apply.
If your tax liability of $1 million or more, you may still request an extension if you are unable to file and pay timely. These requests will be evaluated on a case-by-case basis and taxpayers will be notified if their extension has been approved or denied. You may request relief of interest or penalties or request an extension for filing a return in one of the following ways:
Online — by logging in to your online services account using your username and password. Once you are logged in, please follow the steps below:
- Select the account you would like to request an extension for below Accounts.
- Select Request a Filing Extension located below I Want To.
- Select the A disaster occurred, such as a fire, flood, storm, tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes, which has prevented the timely filing or payment option.
- Complete the form.
Email or Letter
You may send us your request in writing via email or postal mail and include the following information:
- First and Last Name
- Account Number
- Your Relation to the Account (owner, officer, bookkeeper, etc.)
- Periods of Relief Requested
- An explanation of why the requested relief should be granted
Email your request to BTFD.RAUElectronicMaintenanceRequests@cdtfa.ca.gov
Mail letters to:
California Department of Tax and Fee Administration
Return Analysis Unit, MIC:35
PO Box 942879
Sacramento, CA 94279-0035
You can use this link to review the new due dates for various types of tax returns and taxes.
Extensions for Filing a Claim for Refund or Tax Appeal
The Executive Order issued on March 30, 2020, provides a 60-day extension for taxpayers to file a claim for refund for any refund that must otherwise be filed by July 31, 2020. The Executive Order also provides, through July 31, 2020, a 60-day extension for requesting a tax appeal with the Office of Tax Appeals.
Small Business Relief Payment Plans
Effective April 2, 2020, small business taxpayers, those 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.
Payment plan requests can be made through our online services system in the coming months. Qualifying sales and use taxpayers with deferred liabilities up to $50,000 will pay their tax due in 12 equal monthly installments. No interest or penalties will be assessed against the liability. The maximum amount that any taxpayer can defer, interest-free under this relief effort, is $50,000. If a taxpayer owes more than $50,000 and needs a payment plan for the amount over $50,000, the taxpayer will enter into one payment plan and adjust the appropriate amount of interest off toward the end of the 12 month period.