We spring forward into daylight savings time, with several tax deadlines looming near. We share the good news of an automatic extension until June 17th, 2024 for San Diego County residents only. To request an extension, please call 310.398.3231 or 858.279.1640 or e-mail Roxana@taxplus.com .

S-Corp.s & Partnerships due March 15, 2024 

• The S Corp tax deadline for 2023 (and beyond) is usually March 15 for most taxpayers
• The S Corp tax due date may be different for small business owners who use a fiscal year that does not align with the calendar year
• S Corp taxes can be filed using Form 1120-S. An extension for the S Corp tax return due date can be requested using Form 7004.

San Diego Taxpayers Granted Automatic Tax Filing Extensions until June 17th, 2024. Please read “Reminder about extensions” beyond June 17th below. 

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 are normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 
• 2024 estimated tax payments are normally due on April 15, 2024. 
• Quarterly payroll and excise tax returns are normally due on Jan. 31 and April 30, 2024. 
• Calendar-year partnership and S corporation returns are normally due on March 15, 2024. 
• Calendar-year corporation and fiduciary returns and payments are normally due on April 15, 2024. 
• Calendar-year tax-exempt organization returns are 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. 

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 the 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 online, in person, or by mail. Per sandiego.gov, it takes up to two weeks to receive a 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 or 10% of the amount owed, whichever is greater. There are additional surcharges that apply for businesses 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: 

https://www.sandiego.gov/treasurer/taxesfees/btax/btaxhow