CA Preparers - Are you still going to file a 3/15 extn?

And why?

Also, are you going to estimate the PTE balance due and send all of your pass-through clients their payment vouchers by 3/15?

I filed extensions because I'm neurotic and worry about letters in the future.

Depending on a client circumstance, it may be worthwhile to file an extension as a postponement of a tax deadline is different from an extension:

https://www.thetaxadviser.com/issues/20 ... virus.html

https://www.thetaxadviser.com/news/2023 ... ments.html

I've gone back and forth on this. This is my plan now:

1. Extend 3/15 returns, esp partnerships that cannot elect out of BBA. Pay S corp tax/CA minimums timely. Tell client that there is an extension, but we are not certain if computers are being reprogrammed, and the cost of dealing with notices will be more than any earnings on delayed payments.

2. PTE payments - pay based upon original due dates. This is a harder sell since amounts can be significant. But I have not seen anything from the FTB stating clearly that these payments fall under the deadline extension. Have you? I do not want to be responsible for this. I will explain to clients that the PTE is a different animal, we don't have certainty, my advice is to pay up, and if they don't, it's on them.

3. I was going to extend my individuals also, but now I am thinking that if I file extensions with balance due that are not due and paid until 10/15, then I will likely trigger notices. My goal is to not trigger notices. So perhaps no on the individual extensions.

4. However, I am telling all individuals that if they make use of the deadline extension, there might be time required on the other side to straighten things out with the IRS and FTB. And I will tell them that for myself, I am making payments based upon original due dates because I don't want to deal with the IRS and FTB.

What are you doing?

I am trying to free myself of the wasted time I spend the 7-10 days before 3/15 & 4/15 where all I am doing is working up estimates for clients to pay their PTE & extension payments. If these are really not due, then why waste that time if I can spend that time actually finishing tax returns?

It seems clear that the extension payments are not due. I'm not taking the chance with all the stupid rules around the PTE. If you have something that provides certainty, I'd love to know.

If I did have something would you change your plan?

Of course. I don't need an unnecessary fire drill.

Let me know what you think...

https://www.gov.ca.gov/2023/03/02/more- ... er-storms/

Yes I saw that. Here is the concern.

The IRS announced tax relief for Californians affected by these winter storms. Taxpayers affected by these storms qualify for an extension to October 16, 2023 to file individual and business tax returns and make certain tax payments. This includes:

Individuals whose tax returns and payments are due on April 18, 2023.

Quarterly estimated tax payments due January 17, 2023, April 18, 2023, June 15, 2023, and September 15, 2023.

Business entities whose tax returns are normally due on March 15 and April 18.

PTE Elective Tax payments due on June 15, 2023.

The PTE due 3/15 is not an estimated tax payment. And it is not separately listed as is the PTE due 6/15/2023. I don't want to be on the hook.

The 2022 PTE payment due 3/15 and the 2022 1.5% tax payment also due 3/15 are both balance due payments on the tax returns that are due 3/15. See the bold I added, below.

The IRS announced tax relief for Californians affected by these winter storms. Taxpayers affected by these storms qualify for an extension to October 16, 2023 to file individual and business tax returns and make certain tax payments. This includes:

Individuals whose tax returns and payments are due on April 18, 2023.

Quarterly estimated tax payments due January 17, 2023, April 18, 2023, June 15, 2023, and September 15, 2023.

Business entities whose tax returns are normally due on March 15 and April 18.

PTE Elective Tax payments due on June 15, 2023.

I know it would have been great if they specifically came out and said that, but they gave us catch all wording instead.

Just like they never listed business returns due 5/15, 6/15, etc., but we know those are also covered under the extension.

Do you like the words on the old 5/15 extension better?

https://www.gov.ca.gov/2023/01/13/tax-r ... by-storms/

Taxpayers affected by these storms qualify for an extension to May 15, 2023 to file individual and business tax returns and make certain tax payments. This includes:

Individuals whose tax returns and payments are due on April 18, 2023.
Quarterly estimated tax payments due January 17, 2023 and April 18, 2023.
Business entities whose tax returns and payments are due on March 15, 2023

I see your point. It bugs me that they listed the 6/15 payment and not the 3/15 payment. Do you trust them? If you did, you wouldn't have started this thread, right?

Of course, I trust them. Only the wisest and most selfless are in charge which is why we demand they centralize more control over us. We certainly couldn't trust ourselves.

A lot of us our nervous about this 3/15 date, but we will become more relaxed when 4/15 arrives. We did the 4/15 thing already in 2020 & 2021.

This!

https://www.ftb.ca.gov/file/when-to-fil ... elief.html

Does the payment deadline that is moved to October 16, 2023, also apply to a passthrough entity elective tax that is due on March 15, 2023 and June 15, 2023?

Yes. If a taxpayer in a covered disaster area has a filing or payment deadline that falls between December 27, 2022, and October 16, 2023, the filing or payment will be considered timely if made on or before October 16, 2023. This basic rule applies to any passthrough entity elective tax that is due on March 15, 2023 or June 15, 2023.

Game changer. Thanks.

Wiles, I am sure that you also just received the Spidell email, which summarizes where we are at in plain language.

It says, in part, this:

The automatic extension applies to any and all payments for the listed return types for payments due on or after January 8, 2023, through October 16, 2023, except for payroll tax deposits. The payment extension for payroll tax deposits only applied to deposits due from January 8, 2023, through January 23, 2023, and those deposits were due on January 23, 2023.
In other words, all payments for the return types listed above that were due on or after January 8, 2023, through October 16, 2023, are due on October 16, 2023, without incurring late payment penalties. This includes estimated tax payments and the California passthrough entity elective tax March 15, 2023, payment (for calendar-year taxpayers) as well as the June 15, 2023, prepayment for the 2023 tax year. Retirement plan contributions, including employer contributions, are also extended to October 16, 2023.

The underlined portion made me realize that I don't think I've read anything that says that interest won't be charged. Are we sure no interest will be charged?

Yes. I did receive that and saw the same thing.

It's funny because their message board is blowing up with all these questions as if it is Spidell's responsibility to tell us everything. Their Flash email starts off with "This Flash E-mail is meant to clarify, in plain English,...". And you can tell they took their time to try to answer every single question. They even answered some of them twice just to make sure it sticks with the reader.

I just know the message board is now going to start blowing up with "But what about the interest!?!?". They will be shaking their heads.