On Thursday, August 15, 2024, the Assembly Appropriations Committee voted to hold SB 1501 “under submission.” According to our sources at the Capitol, this means that the bill is essentially dead, although it won’t be “officially” dead until August 31, 2024, when the legislative session ends.
This means that the hoped-for fix to the June 15 passthrough entity elective tax prepayment requirement will not happen for the 2024 tax year. Therefore, if a taxpayer failed to pay the greater of $1,000 or 50% of the amount of passthrough entity tax due for the prior year by June 15 of the current tax year, it will be ineligible to qualify to make the election for the tax year.
The FTB does not have the authority to allow for any exceptions to this prepayment requirement.
Sign up for Spidell’s 2024/25 Federal and California Tax Update and see why more than 18,000 tax pros choose Spidell each year. Click here for details.