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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
October 19, 2020
Tax Briefing(s)

The Treasury and IRS have issued guidance on the recent order by President Trump to defer certain employee payroll tax obligations on wages paid from September 1, 2020, through December 31, 2020. Under the guidance:


The IRS has released the 2020-2021 special per diem rates. Taxpayers use the per diem rates to substantiate the amount of ordinary and necessary business expenses incurred while traveling away from home. These special per diem rates include the special transportation industry meal and incidental expenses (M&IEs) rates, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. Taxpayers using the rates and list of high-cost localities provided in the guidance must comply with Rev. Proc. 2019-48, I.R.B. 2019-51, 1390.


The Treasury and IRS have issued final regulations that limit the Code Sec. 245A dividends received deduction and the Code Sec. 954(c) exception on distributions supported by certain earnings and profits not subject to the integrated international tax regime created by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). Proposed regulations and temporary regulations, issued on June 18, 2019, are adopted and removed, respectively.


Treasury has issued final and amended regulations on the rules for distributions made by terminated S corporations during the post-termination transition period (PTTP). These regulations apply after an S corporation has become a C corporation.


Final regulations clarify that the amount of the rehabilitation credit for a qualified rehabilitated building (QRB) is determined as a single credit in the year the QRB is placed in service. This is the case even though the credit is allocated ratably over a five-year period. The final regulations adopt without modification proposed regulations released earlier this year ( NPRM REG-124327-19).


The IRS has released final regulations that clarify the definition of a "qualifying relative" for purposes of various provisions for tax years 2018 through 2025. These regulations generally affect taxpayers who claim federal income tax benefits that require a taxpayer to have a qualifying relative.


The IRS has announced that Medicaid coverage of Coronavirus Disease 2019 (COVID-19) testing and diagnostic services is not minimum essential coverage for purposes of the premium tax credit under Code Sec. 36B.


The IRS has released guidance in the form of questions and answers with respect to certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), and the Bipartisan American Miners Act of 2019 (Miners Act).


Final regulations provide additional guidance on the base erosion and anti-abuse tax (BEAT) under Code Sec. 59A. The regulations also address certain aspects of the BEAT under Code Secs. 1502 and 6031.