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Sunny Taxes: Navigating California's Tax Penalties

Sunny Taxes: Navigating California's Tax Penalties

California offers a six-month automatic extension for filing state taxes, with the usual deadline being April 15, mirroring the federal tax deadline. However, any owed taxes must still be paid by April 15 to avoid penalties. Failure to file by the extended deadline (October 15) results in a delinquent filing penalty, which is 5% of the owed tax per month, up to 25%. Late payment incurs a fee of 5% plus 0.5% per month. Bounced checks carry penalties too, and prolonged non-payment can lead to collection fees and tax liens, which severely impact credit scores and can hinder job prospects. The article emphasizes the importance of paying state taxes on time to avoid these complications and advises using the California Franchise Tax Board website for payments.

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