2023 Extension Request Due April 15, 2024
April 8th, 2024
2023 Extension Request Due April 15, 2024
Please request an extension if your 2023 individual, single-member LLC, or C corporation filings will not be complete by 4/15/24. We cannot assume that you need an extension. If you are requesting an extension, remember it is an extension of time to file and not an extension of time to pay. If you do not make an estimated extension payment you may be liable for penalties and interest. See Safe Harbor Rules below and call us to help you determine your estimated payment for an extension.
To request an extension, click here, call 310.398.3231 or 858.279.1640, or e-mail Roxana@taxplus.com .
Safe Harbor Rules to Avoid IRS and State Penalties on Extensions
On individual extensions, the IRS will not charge you an underpayment penalty if you pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year, or you owe less than $1,000 in tax after subtracting withholdings and credits. The state of CA conforms to the same Safe Harbor rules.
Important Note: If the Adjusted Gross Income (AGI) on your previous year’s return is over $150,000 (over $75,000 if you are married filing separately), you must pay the lower of 90% of the tax shown on the current year’s return or 110% of the tax shown on the return for the previous year.
San Diego Taxpayers Granted Automatic Tax Filing Extensions until June 17th , 2024
The Internal Revenue Service announced tax relief for individuals and businesses in parts of California affected by severe storms and flooding that began on Jan. 21. San Diego County is a FEMA (Federal Emergency Management Agency) designated area for tax relief, extending various federal individual and business tax returns and payment deadlines until June 17, 2024. The state of CA tax filings and payments will conform to these extensions.
The June 17, 2024, deadline will apply to:
- Individual income tax returns and payments normally due on April 15, 2024.
- 2023 contributions to IRAs and health savings accounts for eligible taxpayers.
- 2024 estimated tax payments normally due on April 15, 2024.
- Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024.
- Calendar-year partnership and S corporation returns normally due on March 15, 2024.
- Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
- Calendar-year tax-exempt organization returns normally due on May 15, 2024.
Also, penalties for failing to make payroll and excise tax deposits due on or after Jan. 21, 2024, and before Feb. 5, 2024, will be abated as long as the deposits were made by Feb. 5, 2024.
The IRS disaster relief page has details on other returns, payments, and tax-related actions qualifying for relief during the postponement period.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief.
It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these kinds of unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
Reminder About Extensions
The IRS urges anyone who needs an additional tax-filing extension, beyond June 17, 2024, for their 2023 federal income tax return to request it electronically by April 15, 2024. Though a disaster-area taxpayer qualifies to request an extension between April 15, 2024, and June 17, 2024, a request filed during this period can only be submitted on paper. Whether requested electronically or on paper, the taxpayer will then have until Oct. 15, 2024, to file, though payments are still due on June 17, 2024. Visit IRS.gov/extensions for details.
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IMPORTANT REMINDER:
The City of L.A., Office of Finance, Annual Business Registration was due by February 29th, 2024. You may be penalized for non-compliance, even though you would have otherwise been eligible for an exemption. Call us for insight on how to deal with City of L.A. notices.
You must comply with the City of Los Angeles, Office of Finance annual Business Registration by 02/29/24 if you are doing business in Los Angeles as an independent contractor, self-employed, freelancer, sole proprietor, small business owner, partnership, fictitious business name (dba), loan-out co., LLC, or S-Corp. You may qualify for a small business exemption from city taxes if you generated up to $100,000 of 2023 gross income or up to $300,000 as a creative artist. However, these exemptions are only valid with timely filings. You may be penalized by the city for non-compliance, even though you would have otherwise been eligible for an exemption.
Because the filing deadline falls before most of our clients’ income tax filing appointments, it is your responsibility to comply with the registration but call us if you need help complying. Visit our website, www.taxplus.com under the Resources tab where you will find several links to City of Los Angeles, Office of Finance, including Tax Education, Is Your Business in the City of Los Angeles, Is Your Business Registered, Online Registration and Online Business Tax Renewal.
City of San Diego Business Tax
The City of San Diego issues a “Business Tax Certificate” in lieu of a business license. To obtain a certificate, you must apply for a Business Tax Certificate via online, in person, or by mail. Per sandiego.gov, it takes up to two weeks to receive receipt of your business tax certificate.
To apply and keep your certificate active, there is an annual fee due to the city of San Diego, which is based on the number of employees your business has. For businesses with 12 or fewer employees, the annual rate is $34.00 (with an additional $4 state mandated fee), and businesses with 13 or more employees have an annual rate of $125.00 plus $5.00 per employee.
The city tax application must be submitted within 15 days of the business start date. Businesses that fail to pay within this time frame are subject to a late fee of $25.00 or10% of the amount owed, whichever is greater. There are also surcharges that apply for businesses who are found operating in the City of San Diego but have not paid the Business Tax.
If you have any questions: please refer to the FAQ’s on the city website:
https://www.sandiego.gov/treasurer/taxesfees/btax/btaxfaq
To apply OR renew your City of San Diego Business Tax Certificate, please click on the following link:
