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Tax Law

California Governor Issues Executive Order Authorizing Sales & Use Tax Return Filing, Refund Claim, and Appeal Extensions

On March 30, 2020, California Governor Gavin Newsom issued Executive Order N-40-20 (Order) regarding the state’s COVID-19 State of Emergency. The Order grants additional extensions to taxpayers and gives new authority to the California Department of Tax and Fee Administration (CDTFA) to provide relief from interest and penalties to taxpayers impacted by the State of Emergency. The CDTFA administers California’s sales & use tax, as well as over 30 other special tax and fee programs.

The Order provides that for taxpayers filing a return for less than $1,000,000 in tax, the CDTFA may suspend statutory rules requiring taxpayers to request a filing extension and file a statement under penalty of perjury for up to three months after the due date of the return or payment. The Order also extends the statute of limitations for taxpayers to file a refund claim with the CDTFA for 60 days. Additionally, the Order extends the time limit for taxpayers to appeal a CDTFA determination to the Office of Tax Appeals for 60 days. Each of these proclamations is effective from March 31, 2020 to July 31, 2020.