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California COVID-19 Sales Tax Extension

o California taxpayers can claim a sales tax extension, but must go online to claim it

o The extension allows sales tax filers to file and pay all taxes due between March 15, 2020 and June 15, 2020 by June 15, 2020 and receive no penalty

o Taxpayers can claim the extension even if the return they are filing is late (as long as it is no later than June 15, 2020)

California Sales and Use Tax Filing Time Extended

If your business has been affected by COVID-19, California is allowing extra time for businesses to file and pay applicable state taxes, including sale and use tax.

State tax filings (including sales tax) that are due from March 15, 2020 to June 15, 2020 are now all due on June 15, 2020.

This means that California sales and use tax filers have a 60 day extension on their time to file and pay sales tax.

The measure also provides some stress relief to California taxpayers who inadvertently find themselves filing and paying late. California allows you to request the extension even if you are already late with your filing/payment.

For California taxpayers to claim the extension, because the California sales and use tax extension is not automatic, it can be claimed at the time of filing, even if that filing is late.

To claim the extension, follow the California e-filing software’s instructions to enter disaster information, are the followin steps:

1. Login to the Taxpayer Online Services Portal

2. Under the “I Want” column, select “More“

3. Select “Submit a Relief Request“

4. Upon submission of your request, you will receive a confirmation number

5. To review submitted requests, log in with your Username/User ID and password, select your account and then select the Submissions tabFor more information, read the California FAQ sales tax extension here.

6. Further Reading

o California Sales Tax Guide for Businesses

o California’s Response to the Pandemic

o California Governors’s Executive Order

 

Tax Alerts
Tax Briefing(s)

On July 4, President Donald Trump signed into law a Paycheck Protection Program (PPP) application extension bill that Congress had quickly passed just before the Independence Day holiday. According to several senators, the measure was "surprisingly" introduced and approved by unanimous consent in the Senate late on June 30. It cleared the House the evening of July 1.


"If you can look into the seeds of time, and say which grain will grow and which will not, speak then unto me." — William Shakespeare


The U.S. Supreme Court upheld the Trump Administration’s rule under the Affordable Care Act (P.L. 111-148) that any nongovernment, nonpublicly traded employer can refuse to offer contraceptive coverage for moral or religious reasons, and that publicly traded employers can refuse to do so for religious reasons. Application of this rule had been halted by litigation, but the Administration is now free to apply it.


The IRS has issued guidance to employers on the requirement to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (Families First Act) ( P.L. 116-127). This reporting provides employees who are also self-employed with information necessary for properly claiming qualified sick leave equivalent or qualified family leave equivalent credits under the Families First Act.


The IRS has issued guidance and temporary relief for required minimum distribution (RMD) changes in 2020. Distributions that would have been RMDs under old law are treated as eligible rollover distributions. The 60-day rollover period deadline for any 2020 RMDs already taken has been extended to August 31, 2020. Notice 2007-7, I.R.B. 2007-5, 395 is modified.


The IRS has clarified and provided relief for mid-year amendments reducing safe harbor contributions. An updated safe harbor notice and an election opportunity must be provided even if the change is only for highly compensated employees. Coronavirus (COVID-19) relief applies if a plan amendment is adopted between March 13, 2020, and August 31, 2020. For nonelective contribution plans, the supplemental notice requirement is satisfied if provided no later than August 31, 2020, and the amendment that reduces or suspends contributions is adopted no later than the effective date of the reduction or suspension. Notice 2016-16, I.R.B., 2016-7, 318, is clarified.


The IRS amended final regulations with guidance on the Code Sec. 199A deduction for suspended losses and shareholders of regulated investment companies (RICs). The amendments address the treatment of suspended losses included in qualified business income (QBI), the deduction allowed to a shareholder in a regulated investment company (RIC), and additional rules related to trusts and estates. The IRS had previously issued final and proposed regulations addressing these issues (NPRM REG-134652-18)


The Treasury Department and the IRS have released drafts of proposed partnership forms for tax year 2021 (the 2022 filing season). The proposed forms are intended to provide greater clarity for partners on how to compute their U.S. income tax liability for relevant international tax items, including claiming deductions and credits. The redesigned forms and instructions will also give useful guidance to partnerships on how to provide international tax information to their partners in a standardized format.


The Treasury and IRS have issued final regulations covering the Code Sec. 250 deduction for foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI). Proposed regulations were issued on March 6, 2019 (NPRM REG-104464-18). The final regulations maintain the basic approach and structure of the proposed regulations and provide guidance on computation of the deduction and the determination of FDII, including in the consolidated return context. Additionally, rules requiring the filing of Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income and Global Intangible Low-Taxed Income, are finalized.


The IRS is calling on any taxpayers involved in syndicated conservation easement transactions who receives a settlement offer from the agency to accept it soon. The Service made this request in the wake of the Tax Court’s recent strike down of four additional abusive syndicated conservation easement transactions.