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

For eligible and qualifying pass-through entities (PTEs), this is your friendly reminder that the deadline for submitting your elective initial tax payment is rapidly approaching and must be submitted to the FTB by June 16, 2025, at the latest. This pertains to taxable years beginning January 1, 2021 and before January 1, 2026. PTE elective tax payments can be paid using the FTB’s Web Pay application or by locating the Pass-Through Entity PTE elective tax Payment Voucher. and mailing with check payment to FTB. As a reminder, tax payments and tax filings have separate deadlines which more information these FTB deadlines can be found on the FTB website.

Qualifying PTE’s include entities that are taxed as a partnership or S corporation and generally do not include publicly traded partnerships or entities that are permitted or required to be in a combined reporting group. For Qualified taxpayers, you could receive a credit for your share of the entity level tax which may reduce your state personal income tax if filing in the state of California. This means that qualified taxpayers can choose to pay 9.3% tax on income and be eligible to receive a credit for the same amount on their personal income tax returns. The FTB defines a qualified taxpayer as a partner, member, or shareholder of an electing qualified entity as individual, trust, estate, or fiduciary that is liable for personal income tax in California.  This also includes a disregarded single member LLC that is liable for California personal income tax and owned by an individual, trust, estate, or fiduciary.

We recommend consulting with a reliable financial advisor, CPA and/or local tax attorney to find out if your California business(es) may qualify for PTE tax and benefits.

If you have any questions regarding your individual or businesses’ state and/or federal tax return(s) or received a notice from the IRS, FTB, EDD, CDTFA or any other regulatory agency, please call or email Wilson Tax Law Group, APLC, to setup a consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Tel: (949) 397-2292 (Newport Beach Office) 

Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.