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Tax Law

Updated California State and Local Guidance Related to COVID-19 Relief

In response to California Governor Gavin Newsom’s Executive Order N-40-20, the California Department of Tax and Fee Administration (CDTFA) has updated its guidance to taxpayers impacted by COVID-19 regarding relief from interest and penalties and extended filing deadlines for sales and use taxes and other various taxes. All taxpayers filing a return for less than $1 million in tax automatically receive an additional three months to file returns between now and July 31, 2020. Taxpayers with tax liability of $1 million or more are eligible for an extension as well, but must request it.

The City of San Francisco has waived quarterly estimated tax payments of the City’s Gross Receipts, Payroll Expense, Commercial Rents, and Homelessness Gross Receipts Taxes that otherwise would be due on April 30, 2020, for taxpayers or combined groups with combined San Francisco gross receipts in 2019 of $10 million or less. The payments now must be made along with 2020 annual tax payments generally due by March 1, 2021. The City is also extending the due date for annual license fees until June 30, 2020.