CALIFORNIA CORNER: FTB Issues Guidance Regarding Payments Made Following Disaster Relief

In a Tax News Flash issued September 15, 2023, the California Franchise Tax Board (FTB) has warned taxpayers and tax professionals about combining payments due October 16, 2023.  The disaster declarations from the winter storms that were applicable to most counties of California extended the due date for multiple personal and business entity tax payments covering two tax years. To ensure your clients’ payments are processed timely and accurately, please submit separate payments for each payment type and do not combine payments for different tax years.

As an example, be sure that payments for 2022 tax year liabilities are made separately from 2023 estimated tax payments.  Moreover, FTB warns that pass-through entity (PTE) taxes for 2022 should be made separately from PTE tax estimates for 2023. Finally, while it is okay to make April and June 2023 estimates in a lump sum, if the total exceeds $20,000 for an individual, that will trigger mandatory electronic payments for that taxpayer in the future.

Please follow the link for FTB’s web page on disaster declaration tax payments.