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Governor Newsom Grants Additional Relief for Business Taxpayers

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Small businesses now have until July 31, 2020 to file first quarter returns

In accordance with the executive order issued by Governor Newsom Monday night to expand tax relief for small business taxpayers, the California Department of Tax and Fee Administration (CDTFA) announced Tuesday that all small businesses will have an additional three months to file returns and pay taxes administered by the department. Additionally, all businesses will have an extra 60 days to file claims for refund from CDTFA or to appeal a CDTFA decision to the Office of Tax Appeals.

CDTFA is providing a three-month extension for a tax return or tax payment to any businesses filing a return for less than $1 million in tax. For the approximate 99.5% of business taxpayers below the $1 million threshold for their current California sales and use tax obligation, returns for the 1st Quarter 2020 will now be due on July 31, 2020. The same provisions apply to the other tax and fee programs administered by CDTFA. Qualifying taxpayers are not required to file a request for extension or request relief from penalty or interest. This automatic extension will remain in effect through the reporting of taxes and fees due on or before July 31, 2020. 

“This expands on the relief previously granted to small businesses, giving them an extra 90 days to file and pay any business taxes and fees administered by CDTFA without incurring any penalties or interest,” said Director Nick Maduros. “By including the $1 million threshold, we’re able to offer much-needed relief to small businesses across the state while still maintaining the integrity of our local finance system. Approximately 55% of the sales and use tax collected goes back to our cities and counties, which count on this revenue to provide essential public services.”

In addition to the three-month extension of time to file and pay taxes, the executive order issued by Newsom also provides business taxpayers with additional time to file claims for refund and appeals to the Office of Tax Appeals. Taxpayers looking to make refund claims with CDTFA during this period will have an additional 60 days to file. Similarly, taxpayers seeking an appeal of a CDTFA tax determination to the Office of Tax Appeals will have 60 additional days to file the appropriate request.

Additional information on the relief offered can be found at cdtfa.ca.gov/services/covid19.htm. Taxpayers who need additional help or have questions are encouraged to contact CDTFA by:

To find the latest information on CDTFA’s COVID-19 efforts, visit cdtfa.ca.gov/services/covid19.htm. For information about California’s COVID-19 efforts, visit covid19.ca.gov.

March 31, 2020

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