In an effort to continue assisting small businesses affected by COVID-19, the California Department of Tax and Fee Administration (CDTFA) is offering interest-free payment plans to qualifying California small business taxpayers. Small businesses can defer up to $50,000 of sales and use tax liability for one year. Furthermore, all small businesses will have an additional three months to file returns and pay taxes administered by the CDTFA.
Interest/Penalty- Free Payment Plans
Qualifying small businesses 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. This relief can help qualifying small businesses hold onto tax funds interest and penalty-free while they get their business back up and running. Small businesses can obtain more information and apply for payment plans by visiting www.cdtfa.ca.gov .
Businesses that do not fit these parameters may qualify for assistance as the CDTFA has the administrative flexibility to assist businesses in need of relief when disasters occur. Contact the agency by phone at 800-400-7115 to discuss possible options.
Extensions for Filing
Any business filing a return for less than $1 million in tax will have an additional 90 days to file returns and pay taxes administered by the CDTFA. Qualifying business 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.
Businesses also have an additional 60 days to file claims for a refund from CDTFA or to appeal a CDTFA decision to the Office of Tax Appeals.
In addition to these relief efforts, small businesses can take advantage of the recently passed legislation to help during this crisis. Check out Business Consumer Alliance’s resource, “CARES Act and Emergency Relief for Small Businesses” and “Disaster Recovery Aid Available to Small Businesses During COVID-19 Pandemic”. BCA supports small businesses and is here to help during these trying times. Contact Us if you need further assistance and make sure to follow us on Facebook.
About Business Consumer Alliance
Business Consumer Alliance (BCA) is a non-profit company that started in 1928. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.