Automatic Extensions to File and Pay
California Department of Tax and Fee Administration (CDTFA) announced that all taxpayers with tax liability less than $1 million dollars have an additional 3 months between March 30, 2020 and July 31, 2020 to file their returns including but not limited to Sales and Use Tax, Alcoholic Beverage Tax, Motor Vehicle Fuel Tax, and Cannabis Tax. The extension provided by the CDTFA is automatic, and qualifying taxpayers do not need to apply for it.
For instance, an original due date of Sales and Use Tax for the first quarter of 2020 was April 30, 2020 for quarterly filers. This extension postpones the due date from April 30, 2020 to July 31, 2020. The automatic extension also applies to the due date of tax payments.
Taxpayers with tax liability of $1 million dollars or more can still request an extension if they cannot timely file and pay their returns. However, this request will be evaluated by the CDTFA on a case-by-case basis.
Small Business Relief Payment Plan
Taxpayers with less than $5 million dollars in taxable annual sales can request a payment plan for up to $50,000 of Sales and Use Tax liability. The payment plan allows the qualifying taxpayers to defer the tax liability through an installment over a 12-month period without incurring any penalties or interests, with the first payment not due until July 31, 2020. The payment plan request needs to be submitted through CDTFA’s website.
Please refer to https://www.cdtfa.ca.gov/services/covid19.htm#small-business-payment for additional detail.