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CALIFORNIA CORNER: FTB Issues Guidance Regarding Payments Made Following Disaster Relief

In a Tax News Flash issued September 15, 2023, the California Franchise Tax Board (FTB) has warned taxpayers and tax professionals about combining payments due October 16, 2023.  The disaster declarations from the winter storms that were applicable to most counties of California extended the due date for multiple personal and business entity tax payments covering two tax years. To ensure your clients’ payments are processed timely and accurately, please submit separate payments for each payment type and do not combine payments for different tax years.

As an example, be sure that payments for 2022 tax year liabilities are made separately from 2023 estimated tax payments.  Moreover, FTB warns that pass-through entity (PTE) taxes for 2022 should be made separately from PTE tax estimates for 2023. Finally, while it is okay to make April and June 2023 estimates in a lump sum, if the total exceeds $20,000 for an individual, that will trigger mandatory electronic payments for that taxpayer in the future.

Please follow the link for FTB’s web page on disaster declaration tax payments.

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Karen Brosi, CFP, EA


Karen Brosi, CFP, EA, has an extensive California tax practice, advising clients in individual tax and family wealth planning, specializing in complex individual income tax matters and all types of securities transactions. Her background as a CFP and as a tax preparer for the wealthy makes her particularly effective in the tax and financial planning arenas. Karen teaches tax professionals how to avoid tax minefields with her extensive planning checklists and practical tips.

Besides being one of the most prominent California tax update instructors, she’s a favorite interviewee on radio, television, and in print media, such as Bloomberg Businessweek. Karen’s powerful real-life presentations pinpoint critical federal and state tax areas, teaching tax professionals what they need to know to optimally assist their clients. Karen was the recipient of the California CPA Education Foundation 2012-2013 Outstanding Webcast Instructor award.

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