Tax News June 2025

Tax News Flash - Los Angeles County Disaster Relief Reminder

Tax News Flash – Los Angeles County Disaster Relief Reminder

Los Angeles County Disaster

Disaster Relief

Individuals and businesses with their principal residence, or principal place of business, in Los Angeles County during the fires that began on January 7, 2025, qualify for a postponement to file and pay taxes until October 15, 2025. To notify FTB, Los Angeles County taxpayers must write the name of the disaster (e.g., LA County Fires) at the top of their tax return. Taxpayers filing electronically need to follow their software instructions to enter disaster information.

Below is an example of an electronically filed tax return with disaster properly checked.

Only income tax filings and payments due between January 7, 2025, and October 15, 2025, qualify for a postponement to October 15, 2025. Refer to Los Angeles County fires and disaster declaration tax payments for examples of tax returns and payments eligible for postponement.

Disaster Assistance

Los Angeles County individuals and businesses who did not mark “disaster” on their tax returns, or who have questions about disaster relief, should contact FTB by:

• Email: FTBLACountyDisasterRelief@ftb.ca.gov
• Phone: 888-825-9868
• Online: MyFTB

The email address and phone number options above are only for individuals and businesses affected by the Los Angeles County disaster.

For frequently asked questions, go to Help with Los Angeles County fire relief. Taxpayers with questions not related to the Los Angeles County fires may use one of the many options to contact FTB.

Pass-Through Entity (PTE) Elective Tax Payments Due June 16

Qualified entities must make PTE elective tax initial payment on or before June 16, 2025. The payment amount is the greater of:

• 50% of the elective tax paid the previous year; or
• $1,000

If this payment is missed or underpaid, the entity will be unable to make a valid election. In addition, PTE elective tax payments must be made separate from other tax payments, such as estimated tax payments.

The payment can be made using Web Pay or by electronic funds withdrawal using tax preparation software. However, if your clients are unable to pay electronically, they can mail in a payment. Please make the check payable to the Franchise Tax Board, attach FTB 3893, Pass-Through Entity Elective Tax Payment Voucher, and write the entity name, ID number, and taxable year on the check.

Mail

Franchise Tax Board

PO Box 942857
Sacramento CA 94257-0531

Once the payment is made, it will remain on the entity's account as a PTE tax payment for that taxable year. Payments can be viewed within MyFTB. PTE elective tax payments are displayed on the Payment History and the Estimate Payments pages for business entities.

Go to PTE elective tax credit for additional information.

When to Pay the Limited Liability Corporation Fee

A limited liability company (LLC) must pay the LLC fee if it is organized, doing business, or registered in California and has total income from all sources derived from or attributable to California of at least $250,000.

For LLC fee purposes, “total income from all sources derived from or attributable to California” is gross income plus the cost of goods sold that are paid or incurred in connection with the trade or business of the taxpayer.

For calendar year LLCs, the estimated LLC fee is due by the 15th day of the sixth month. For 2025, payment may be accepted by June 16, as June 15 falls on a Sunday. For fiscal year LLCs, the estimated fee is due on the 15th day of the sixth month of the current taxable year.

LLC fee by total rounded income:

Total California income rounded to the nearest whole dollar	Fee amount
$250,000 - $499,999	$900
$500,000 - $999,999	$2,500
$1,000,000 - $4,999,999	$6,000
$5,000,000 or more	$11,790

LLCs must use Form 3536, Estimated Fee for LLCs, or Web Pay to make estimated fee payments.

If the payment is less than the amount owed, we will assess a 10% penalty on the underpaid fee. The underpaid amount is the difference between the total amount of the LLC fee due for the taxable year, less the estimated fee paid on or before the estimated fee due date. An LLC may also be subject to a late payment penalty for the same taxable year.

For more information, review Common Penalties and Fees.

The penalty will not be imposed if the LLC’s estimated fee payment is equal to or greater than their prior year’s LLC fee. For purposes of whether the LLC estimate fee penalty applies, there is no requirement the prior taxable year be a full 12 months.

Use Business Entity Identification Number for Web Pay

The Secretary of State (SOS) recently began to issue a 12-digit alphanumeric entity ID number for newly formed corporations, limited liability companies (LLC), and limited partnerships (LP).

The new number format differs from the format used for previously issued ID numbers for these entity types. New entities that register and receive a 12-digit alphanumeric number should only use the 11 numeric digits to access the Web Pay application. Entities who previously registered and received a 7-digit corporation number or 12-digit LLC number or LP number will continue to use those numbers.

We received several inquiries about error messages received when you enter a business entity ID number into the Web Pay application. To ensure the entity ID is accepted by our system, please enter numbers only. If you enter dashes, spaces, or alpha characters, you will receive the error message, “The Entity Type and Entity ID combination you entered does not match our records. Please verify this information and try again.”

For corporations, LPs, and LLCs, the entity ID is the entity number provided at registration by SOS. To find a business entity ID, go to the CA SOS business search website and enter the business entity name. The entity ID is located in the Entity Information column, and this is the number to use for Web Pay. If the corporation, LP, or LLC is not registered with SOS, use the FTB assigned number for Web Pay. For partnerships, enter the 11 or 12-digit CA SOS number if registered or the 9-digit FTB issued ID number.

As previously stated, Web Pay only accepts numbers as business entity IDs; please do not include dashes or alphanumeric characters.

For Web Pay business, our system will not accept the following ID numbers:

• Federal Employer Identification Number (FEIN) issued by the IRS
• Employer payroll tax account number issued by the Employment Development Department
• Personal Social Security numbers
• Sales tax ID numbers issued by the California Department of Tax and Fee Administration.
• Any other ID number from other state or federal agencies.

For more information about Pay by bank account (Web Pay).

New Self-Service Features

FTB continues to design new self-services to make your job easier. We are excited to provide two new self-services that will be available in June 2025:

Personal Income Tax Self-Correct

This new service allows taxpayers to respond online to a FTB 5818, Notice of Tax Return Change when Form 3514 is missing. Taxpayers can respond through their MyFTB account with the unique URL provided on the notice received, or by mailing Form 3514 to the address indicated on the notice.

MyFTB for Withholding Agent Representatives

This new service allows withholding agent representatives to electronically file the following forms:

• Form 592, Resident and Nonresident Withholding Statement
• Form 592-PTE, Pass-Through Entity Annual Withholding Return
• Form 592-F, Foreign Partner or Member Annual Return

Withholding agents now have the option to file by mail, online through MyFTB for Withholding Agent Representatives, or by SWIFT. Users must file through SWIFT when there are 250 or more payees.

Withholding agents also have the option to submit payments electronically when filing Form 592, Form 592-PTE, and Form 592-F. In a future enhancement to the service, withholding agents will be able to submit payments without submitting a withholding form.

Withholding agents must register for a MyFTB account prior to submitting online. Once the withholding agent completes the authentication process and has a valid account, they can file nonresident withholding forms through MyFTB for Withholding Agent Representatives.

Please be advised, it takes approximately 5-7 business days to complete registration.

Assistance with MyFTB Registration

Individuals and tax professionals can get assistance when certain MyFTB issues arise. The electronic services hotline can assist in a limited capacity but cannot access confidential information.

The hotline can assist with:

• Registration issues not related to information required to register
• Password reset (expired, forgot password, or unable to answer security questions to reset)
• Change or update phone numbers
• Resend confirmation emails
• System errors received during registration
• Personal Identification Number (PIN) letter issues, and same day access using TransUnion

The hotline cannot assist with:

• Identifying California Adjusted Gross Income or other tax return information
• Navigating MyFTB
• Post registration access
• General questions regarding Full Online Account Access

The electronic services hotline is available from 8:00 AM to 5:00 PM Pacific Standard Time weekdays, except state holidays, at 800-353-9032, or if outside the country, 916-845-2829.

Help Improve Customer Experience on our Website

We believe listening to our customers is the key to delivering a better experience. One of the most valuable tools we use to collect customer insights is our page-level feedback on ftb.ca.gov. Every page on our website provides an option for visitors to tell us about their experience, including whether they found the information helpful, easy to understand, and how it can be improved.

Every comment submitted is carefully reviewed by our website team. The feedback we receive helps us:

• Make targeted updates that enhance usability
• Identify where we need to make improvements
• Clarify information
• Create a better overall experience for everyone

Leave your feedback on the page you’re having trouble with by going to the bottom left corner of the page to locate “Is there something wrong with this page?” This option is available on all ftb.ca.gov webpages.

Internal Revenue Service (IRS) Updates

We partnered with the IRS to provide monthly IRS articles to assist our tax professional and small business communities, and we are excited to share this information; however, questions about the content should be directed to the IRS.

Tax pros: Register now for the 2025 IRS Nationwide Tax Forum

IR-2025-62, May 27, 2025 — The IRS encourages tax professionals to register now for the 2025 IRS Nationwide Tax Forum, coming this summer to Chicago, New Orleans, Orlando, Baltimore and San Diego.

U.S. taxpayers living, working abroad must file 2024 tax return by June 16 deadline

IR-2025-61, May 22, 2025 — The IRS encourages taxpayers living and working abroad to file their 2024 federal income tax return and pay any tax due by Monday, June 16, 2025.

IRS announces call for grant applications for Tax Counseling for the Elderly and Volunteer Income Tax Assistance programs

IR-2025-60, May 13, 2025 — The IRS is now accepting applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants.

Interest rates remain the same for third quarter of 2025

IR-2025-59, May 12, 2025 — The IRS announces that interest rates will remain the same for the calendar quarter beginning July 1, 2025.

IRS opens application period for Low Income Taxpayer Clinic grants May 15

IR-2025-58, May 9, 2025 — The IRS will begin accepting applications for Low Income Taxpayer Clinic matching grants from all qualified organizations from May 15, 2025, to July 14, 2025. The period of performance for the grant will be Jan. 1, 2026, to Dec. 31, 2026.

IRS reminds taxpayers and small businesses to look out for scams

IR-2025-57, May 8, 2025 — The IRS joins in celebrating National Small Business Week by reminding taxpayers and small businesses that, even though the April 15, 2025, tax filing deadline has passed, it is important to stay vigilant against scams and fraud year-round.

Ask the Advocate
Time-Saving Self-Services

As the 2025 filing season progresses, the Franchise Tax Board (FTB) continues to innovate its online platforms to provide faster and more efficient services for the tax professional community. FTB’s self-service features help save you valuable time to better serve your clients.

Self-service tools like MyFTB provide instant, 24/7 access to client accounts, notices, balances, and payment history. This eliminates the need for time-consuming phone calls or mailed requests, which assists you to resolve issues faster and keep clients informed in real-time.

There are currently 62,000 tax professionals registered for MyFTB. However, only 7,000 tax professionals actively use MyFTB. This means there is a significant number of tax professionals missing out on the powerful tools available through MyFTB that can help you efficiently manage your clients.

If you are not currently registered, to utilize MyFTB, you will need to:

1. Create a MyFTB account
2. File a Power of Attorney (POA or Tax Information Authorization (TIA)
3. Request Full Online Access

If you’re already registered, you’re just a click away to simplify your workflow, save hours each week, and deliver faster service to your clients.

Key Self-Service Features Available Through MyFTB:

• Access Client Information: View notices, balances due, estimated payments, and wage/income information with an active POA or TIA.
• Secure Messaging: Communicate directly with FTB representatives within the portal. You may chat about confidential matters or send a secure message with attachments.
• POA/TIA Submissions: Easily submit or manage your POA and TIA online for faster access to client data.
• Web Pay for Businesses and Individuals: Your clients can make secure, real-time tax payments.
• Payment Status Tools: Quickly verify posted payments including estimated and pass-through entity elective tax.

Let today be the day you login, explore the tools, and unlock the full value of MyFTB.

More Powerful Self-Service Tools

FTB continues to improve its self-service options based on user feedback, and new enhancements are rolled out regularly.

FTB launched a new one-stop shop webpage for tax professionals. This centralized resource hub includes links to most self-service tools, and step-by-step how-to videos all in one convenient location.

This page is designed to help both new and seasoned users quickly find the tools they need, understand how to use them effectively, and stay informed about the latest updates and enhancements.

Check it out: Self-service options

New links will be added as services and videos become available. You can also find the new self-service link on the Tax professionals webpage or type self-services in the website search engine.

I would like to hear your feedback on the new webpage and MyFTB:

Self-Service Options Survey

I hope these convenient self-service features will make you and your clients' lives easier.