In response to the COVID-19 crisis, the California Franchise Tax Board (“FTB”) has followed the IRS’ lead and given taxpayers penalty-free extensions to July 15, 2020 to file and pay their California tax obligations for 2019 and for the first two quarters of 2020.
In the recent days, the IRS and state tax agencies have issued several announcement related to the deferral of tax filing and tax payment obligations. Here’s a summary related to California State Tax Agencies.
California Franchise Tax Board announced its policy for cannabis clients that are only able to pay their tax obligations with cash.
Two new departments will take over much of the BOE’s responsibilities:
– California Department of Tax and Fee Administration, will handle the tax and fee programs now under the BOE. It is scheduled to begin operations July 1, 2017. Its director would be appointed by the governor.
– An Office of Tax Appeals will be created by Jan. 1, 2018. It is intended to be a tax court staffed by administrative law judges who would be appointed from the state’s Office of Administrative Hearings. Taxpayer appeals would be heard by a panel of three judges instead of the elected board members beginning Jan. 1, 2018. Currently, taxpayers who disagree with a Board of Equalization finding about how much they owe in taxes can contest the decision with an appeal, which is heard by the elected board. Taxpayers who want to contest decisions from the administrative judges would have to file lawsuits against the state in civil court.
Tax Attorney Gary Slavett wins Franchise Tax Board income tax appeal before the California State Board of Equalization
Tax Attorney Gary Slavett wins Franchise Tax Board income tax appeal before the California State Board of Equalization.