In recent news, California Governor Gavin Newsom has announced that the California Department of Tax and Fee Administration (CDTFA) is allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months. This is in addition to the issuance on March 30, 2020, of the governor’s Executive Order that provides relief for small businesses on taxes and fees administered by the CDTFA.
Payment Plan Available for Small Businesses
Effective April 2, 2020, small business taxpayers can take a 12-month, interest-free, payment plan for up to $50,000 of sales and use tax liability. “Small business taxpayers” are those with less than $5 million in taxable annual sales.
Payment Plan Requests
Payment plan requests can be made through the CDTFA’s online services system at https://onlineservices.cdtfa.ca.gov/ in the coming months.
Wilson Tax Law Group endorses any tax relief efforts being sought to assist those communities, industries, businesses and individuals negatively affected by the outbreak. Although tax relief doesn’t solve the problem it helps mitigate the financial fallout. If you or your business has comments or concerns or require professional and diligent legal tax help, contact the Wilson Tax Law Group at 949-397-2292.