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Friday, Apr 26, 2024

Repeal for L.A.’s Double Tax Deadline?

As if filing taxes once a year isn’t onerous enough, business owners in the city of Los Angeles have to do it twice. That’s because Los Angeles requires businesses file city taxes by Feb. 28 rather than the April 15 deadline for federal and state tax returns. As a practical matter, it means business owners must close out their books, possibly hire certified public accountants and file paperwork with the city – and then do it again in six weeks for state and federal authorities. L.A. City Councilman Mitchell Englander, who owned a marketing consultancy before representing the northwest section of the San Fernando Valley at City Hall, said that doesn’t make sense. He has asked the City Council to consider moving the filing deadline to April 15. “It was always frustrating for me that I had to pay more money to have bookkeepers and CPAs off season and during the holiday prepare a separate set of books so I could file taxes on time,” Englander said. Recently, Englander asked the city’s new Director of Finance and City Treasurer Claire Bartels to study the feasibility of moving the deadline. Her response was that it was possible and it would not incur any ongoing costs, he explained, but would cause a one-time difference of $100,000 in cash flow when shifting between the two time periods. If business owners have only one deadline for taxes, it might improve the current less-than-stellar 69 percent compliance rate with the city, Englander added. Robert Seltzer, a CPA with L.A.’s Seltzer Business Management Inc., agrees. Changing the deadline to April 15 would be a “positive change” because CPAs are already busy at the beginning of the year. “It would make compliance easier for both businesses and their accounting professionals,” Seltzer explained. “There would be one less deadline to keep track of, and it would provide more time to provide complete and accurate filings.” When Englander introduced a motion to change the deadline, it was seconded by Bob Blumenfield, who represents the southwest Valley district. The issue will come before the Council in August, he said, and he’s hoping it could be in effect for the 2018 tax season. – Carol Lawrence

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