City Business Tax Penalty Amnesty Program in Los Angeles, CA

By
Services for Real Estate Pros with Richardson Accounting and Tax

The City of Los Angeles Office of Finance is offering a Tax Penalty Amnesty Program from October 1, 2020 to December 17, 2020 to provide financial relief to distressed businesses affected by the current downturn in economic conditions. This will provide penalty relief of up to 40% of the principal tax debt.

 

There are various taxes that fall within this penalty relief program including the City business tax. Businesses physically located within the City limits or businesses located outside of the City but conducting business in the City are required to register with the City of Los Angeles Office of Finance and pay City business tax. This pertains not only to corporations, partnerships and limited liability companies but also to sole proprietors. The City of Los Angeles Office of Finance may send notices to unregistered businesses and assess tax upon their operation.  Federal, State and Local tax authorities have improved their ability to locate taxpayers through technological advances and information sharing agreements. It is getting harder to hide and avoid paying taxes.

 

The good news about the Tax Penalty Amnesty Program is that registered and unregistered businesses with tax liabilities are eligible for penalty relief. Businesses able to pay their taxes in full may do so and receive penalty relief. Payment plans can be requested for those unable to full pay their taxes but it requires approval from the Los Angeles Office of Finance. Those already in an existing payment plan are also eligible for the program.

 

If you have any tax questions, feel free to contact me.

Posted by

Howard Richardson

Enrolled Agent

IRS and State Tax Representation

(213) 545-1799

howard@hrichtax.com

http://www.hrichtax.com

Comments (0)