California Special Tax Relief

by | Mar 16, 2020 | Wealth Management

On March 13, 2020, the California Franchise Tax Board (FTB) announced special tax relief in response to the COVID-19 pandemic. Affected business and individual taxpayers are granted an extension to file 2019 California tax returns and make certain payments, until June 15, 2020. This relief is in line with the Executive Order issued by the Governor on March 12, 2020. The extended California deadline of June 15 may be pushed back even further if the Internal Revenue Service grants a longer relief period.

What about the IRS?

The White House and the Treasury Department have indicated they intend to postpone the filing deadline. However, the IRS has not yet issued an official notice or any guidance on the issue.

Caution: To be safe, we suggest filing extensions for all your calendar-year partnerships and S corporations today.

California’s extension

The relief includes moving various tax filing and payment deadlines that occur to June 15, 2020, including:

  • Partnerships and LLCs that are taxed as partnerships whose tax returns are due on March 15th now have a 90-day extension to file and pay by June 15th.
  • Corporations and individual filers whose tax returns are due on April 15th now have a 60-day extension to file and pay by June 15th; and
  • Quarterly estimated tax payments due on April 15th now have a 60-day extension to pay by June 15th.

How to claim the benefit

Taxpayers claiming the special COVID-19 relief should write the name of the state of emergency (for example, COVID-19) in black ink at the top of the tax return to alert the FTB of the special extension period. If taxpayers are e-filing, follow the software instructions to enter disaster information. The software may need some time to reflect on these recent changes.

Who qualifies?

According to the FTB, a taxpayer does not have to be directly impacted to qualify for relief. Taxpayers who experience any difficulty in filing or paying, as a result of COVID-19, are included in this relief.

Latest From The Blog


Our Services

Investment Management

Tailor portfolios to your needs and goals.

Retirement Planning

Investing and saving wisely is vital to success in retirement.

Financial Planning

Navigating the complexities of your financial affairs can be simplified.

Tax Management

Help to increase the amount you “take home”.

Estate Planning

Protect your loved ones and make sure your legacy endures.

Executive Compensation Analysis

Simplify the many options and decision points of executive compensation plans.

Education Planning

Confidently plan for your children’s future.

Charitable Giving

Give in a tax-smart, simple way.

*Please Note: Limitations.  The scope of services to be provided depends upon the terms of the engagement, and the specific requests and needs of the client. BFSG does not serve as an attorney, accountant, or insurance agent.  BFSG does not prepare legal documents or tax returns, nor does it sell insurance products.  Please Also Note: Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BFSG) or any financial planning or consulting services, will be profitable, equal any historical performance level(s), or prove successful.

Sign Up For Our Newsletters

(They're great, we promise)

Connect With Us

Financial Services Group BBB Business Review