LA County Tax Updates
Like the rest of the country, Harmony has been following the tragic news out of LA this month. Our hearts go out to everyone affected by the wildfires, and we’ve been hard at work to update our LA clients on developing news as it applies to their businesses and personal returns. The current updates:
The California Department of Tax and Fee Administration’s announcement automatically extends tax filing deadlines for three months for taxpayers within Los Angeles County whose last return was less than $1 million in tax. This includes sales and use tax as well as most other programs administered by CDTFA. The extensions deadline is until April 30, 2025 for returns and payments due on or before January 31, 2025. CDTFA is also encouraging taxpayers who need additional relief from interest and penalties to request assistance, and offering copies of CDTFA records to taxpayers who need replacements free of charge.
The IRS’s tax relief announcement states that individuals and businesses with returns originally due between January 7th and October 15th this year will now have until October 15, 2025 to file returns and make any payments due. Examples of the new October 15 deadline include:
Individual income tax returns and payments normally due on April 15, 2025.
2024 contributions to IRAs and health savings accounts for eligible taxpayers.
2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.
Quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31, 2025.
Calendar-year partnership and S corporation returns normally due on March 17, 2025.
Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
Calendar-year tax-exempt organization returns normally due on May 15, 2025.
Additionally, penalties for failing to make payroll and excise tax deposits due on or after Jan. 7, 2025, and before Jan. 22, 2025, will be abated as long as the deposits are made by Jan. 22, 2025. You can find more details on other returns, payments, and tax-related actions qualifying for relief during the postponement period on the IRS’s disaster assistance and emergency relief for individuals and businesses page. Note that it is possible an affected taxpayer may not have an IRS address of record within the disaster area, for example if you’ve moved to an affected area after filing your return.
If you’re a Harmony client in Los Angeles, please work with your Harmony CPA to discuss any adjustments to your tax planning and processes that may result from these extensions. In short, these extensions include due dates for estimates, IRA contributions, tax returns, etcetera. As always, Harmony is here to help with any questions or concerns.