All about business November 2020 Tax News

Reminder: File C Corporation returns by November 15, 2020

The original due date of a C corporation's return is the 15th day of the fourth month following the close of the C corporation's taxable year, which is generally April 15.

New for this year (FTB Notice 2019-07), for taxable years beginning on or after January 1, 2019 we will allow an automatic seven-month extension. This applies to all taxpayers in good standing filing:

• Form 100, California Corporation Franchise or Income Tax Return (including REITs, REMICs, and RICs)
• Form 100W, California Corporation Franchise or Income Tax Return – Water’s-Edge

The 7-month automatic extension does not apply to payment of the C Corporation’s tax liability. Normally, the C corporation is required to pay its tax liability by the original due date of April 15, regardless of whether it files its return later using the seven-month extension. Due to the COVID-19 pandemic, the original due date due was moved to July 15 and tax liability payments were due at that time, while the extended due date to file a C corporation's return remains November 15, 2020. (Returns filed on November 16, will be treated as timely filed returns because November 15th is a Sunday.)

If a C corporation does not file its return by the extended filing deadline, then the extension does not apply. Any applicable late filing fees will be calculated from the original due date of July 15, for this year only, instead of the normal April 15 due date.

For more information about C Corporation and other business entity due dates, visit our Business Due Dates webpage. Refer to our COVID-19 Extension to File and Pay webpage to view the changes to these due dates.