COVID-19 Extensions to File and Pay Sales Tax & Small Business Relief Payment Plans

A. COVID-19 Extensions to File and Pay

In accordance with the Executive Order issued by Governor Gavin Newsom on March 30, 2020, CDTFA is providing an automatic three-month extension for a tax return or tax payment to any businesses filing a return for less than 1 million in tax without incurring any penalties or interest. This automatic extension will remain in effect through the reporting of taxes and fees due on or before July 31, 2020. 

Original Due Dates in March 2020 → June 2020 (3-month extension)

• 3/16, 25, 31/20 → 06/15, 25, 30/20

Original Due Dates in April 2020 → July 2020 (3-month extension)

• 4/1, 10, 15, 27, 30/20 → 7/1, 10, 15, 27, 30 or 31/20
  For sales tax liabilities, it’s July 31, 2020.  Other returns are due on 7/30/20.
  Following link shows the due dates for different programs:
  https://www.cdtfa.ca.gov/services/extensions-to-file.htm

B. Small Business Relief Payment Plans

Effective April 2, 2020, small business taxpayers, those with less than $5 million in taxable annual sales, can take advantage of a 12-month, interest-free, payment plan for up to $50,000 of sales and use tax liability. 

• Payment plan requests can be made through our online services system in the coming months
• Qualifying sale and use taxpayers with deferred liabilities up to $50,000 will pay their tax due in 12 equal monthly installments. No interest or penalties will be assessed against the liability
• If a taxpayer owes more than $50,000 and needs a payment plan for the amount over $50,000, then CDTFA must have the taxpayer enter into one payment plan and adjust the appropriate amount of interest off toward the end of the 12 months period