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California Announces Sales Tax Payment Plan for Small Businesses

California-Flag-Bear_GI-89483560-BW-MDBREAKING NEWS | Effective April 2, 2020 California is granting small businesses 12 months to gradually remit the sales taxes that they have collected from customers. This payment plan option is available to businesses with less than $5 million in annual taxable California sales.

Taxpayers are required to enter into a payment plan to spread the liability in equal installments over 12 months, interest and penalty free. The state is referring to this gradual payment option as a “bridge loan” to help businesses with the current health and economic crisis.

Payment plan requests can be made through CDTFA’s online service system in the coming weeks. Visit the CDTFA website for more details. 

Additionally, effective March 30, 2020, for all taxpayers who file a sales tax return of less than $1 million dollars, the CDTFA will provide an automatic three month extension, between now and July 30, 2020. For taxpayers with a liability greater than $1 million, an extension can be requested and will be decided on a case-by-case basis.

For help with determining how to respond to California’s new sales tax payment plan, contact Cherry Bekaert at

A complete list of state-by-state sales tax extension information can be found here. 

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Lauren Stinson, CMI
Written by Lauren Stinson, CMI
As a Principal with Cherry Bekaert, Lauren serves as the National Leader for the Sales & Use Tax practice within the Firm’s State & Local Tax group. Based in Cherry Bekaert’s Atlanta practice, Lauren is an expert on sales and use tax issues that directly impact manufacturers, technology businesses and eCommerce sellers on the state and national levels.

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