The California Franchise Tax Board has reinterpreted guidelines for non-withholding extensions. Under the new FTB guidelines issued April 6th, there is NO EXTENSION OF FILING REAL ESTATE WITHHOLDING. FTB WITHOLDING IS STILL DUE BY THE 20th OF THE MONTH following termination of the exchange.
This is a change from the FTB’s March 19 news release, which announced it was postponing “non-wage withholding” deadlines to July 15. At that time, FTB confirmed to FEA that real estate withholding was included in the extension. FEA members were notified of the extension in the March 20, 2020 FEA Newsletter.
Yesterday, the FTB changed course on that decision and issued a detailed chart in which real estate withholding is specifically addressed. The new guidelines clarify that there is no extension of filing real estate withholding.
A link to the chart can be found here: https://www.ftb.ca.gov/about-ftb/newsroom/covid-19/extensions-to-file-pay.html.
The CA FTB Withholding Services & Compliance Section has apologized to FEA for the confusion.