Tips and Deadlines: How to Avoid Late Payments to the CDTFA
If you’re a California business owner, the IRS is not the only agency to which you pay taxes. The California Department of Tax and Fee Administration (CDTFA) is known for its sales tax audits. The CDTFA generally reviews retailers who sell items at a retail price and the tax calculation is based on the gross receipts obtained from the retail sales. When it comes to managing your San Francisco business taxes, staying on top of deadlines and avoiding late payments is critical. The CDTFA has established filing deadlines for businesses. As the year comes to a close, here are a few tips and a look at the deadlines to be aware of in 2025.
CDTFA filing deadlines depend on the type of tax or fee your San Francisco business is responsible for, as well as your assigned filing frequency. Businesses with moderate tax liabilities file quarterly taxes. Tax returns are due on the last day of the month following the end of the quarter:
Quarter 1 (January – March): April 30
Quarter 2 (April – June): July 31
Quarter 3 (July – September): October 31
Quarter 4 (October – December): January 31
While quarterly tax payers is the most common, there are other businesses that must file monthly taxes. Those are generally businesses with high tax liabilities. Returns for these businesses are due by the last day of the following month (e.g., January’s return is due February 28).
Finally, there are businesses with smaller tax liabilities, or those in specific industries, file taxes annually. Those company tax returns are typically due by January 31 of the following year. Be sure to check with the CDTFA to clarify which category your business falls into if you are unsure.
If you find your business unable to file or pay by the deadline, you must act quickly so you do not end up with penalties or being possibly audited by the CDTFA. To avoid problems, file as soon as possible. Your business will face penalty fees. However, late filings accumulate less interest and penalties when resolved promptly. In some cases, you can also request an extension. The CDTFA may grant extensions under certain circumstances. Talk to an experienced tax attorney or professional for help in this area. Finally, set up a payment plan if you cannot pay the full amount owed at the deadline. The CDTFA may allow you the opportunity to use an installment agreement.
To protect your San Francisco business, it’s best to stay ahead of the CDTFA filing deadlines and make all payments in a timely manner. Setting your business up for success now will allow you the peace of mind knowing your taxes are handled efficiently. If you are facing a situation where that may not be possible, enlist the help of an experienced California tax attorney or professional who can help you navigate the situation with the CDTFA.
Allison Soares is a partner and tax attorney at Vanst Law LLP. It doesn’t matter the issue: audits, collections, appeals, international disclosures, grumpy people— Allison enjoys fixing problems. In addition to her legal work, she has worked in accounting and utilizes that knowledge to her advantage while handling cases involving EDD audits from San Francisco to San Diego.
