Sunday, January 29, 2017

San Francisco Business Tax Updates January 2017 - 2016 Annual Return Live!

2016 Annual Return LIVE!

 The 2016 Tax Year Annual Return is now live at We encourage BOMA members to access the Return and review it.

To enter the Online Return you will need:
  • Seven digit Business Account Number
  • Last four digits of your business tax identification number (Federal EIN or SSN)
  • Eight digit alphanumeric Online PIN (same as prior year)

The The Office of the Treasurer & Tax Collector have send out filing notices recently that include the Business Account Number, Online PIN, and other information to assist taxpayers with filing their Return, including all quarterly installment payments received by their office. 

2016 Annual Return Videos Posted
In our ongoing efforts to make tax reporting accessible to all San Franciscans, we have produced videos on how to file an Annual Return under various circumstances. You may view them here. Please share with your networks, particularly if you work with small businesses that plan to complete their tax return themselves!

Proposed Ordinances

San Francisco's Treasurer has submitted proposed legislation to the Board of Supervisors. These items will be heard this month. The two items that most directly affect the gross receipts tax and payroll expense tax are:

File 161264, which proposes to modify the quarterly filing and payment requirements for payroll expense taxes and gross receipts taxes, clarify the requirements for requesting an extension, and expressly permit taxpayers to apply refunds of the business registration fee, the payroll expense tax, and the gross receipts tax to subsequent tax periods.

File 161225, which proposes to remove the $100 minimum penalty from one of the penalties for failing to register with the Tax Collector; and to remove the fee and administrative requirements for obtaining a duplicate registration certificate.

Both of these proposed ordinances were guided by feedback from the business community about simplifying quarterly installment payments, applying refunds to subsequent tax periods, and reducing penalties and fees on small businesses.

Small Business Enterprise Thresholds Increase

As previously announced, the San Francisco Tax Collector has announced increased small business enterprise thresholds for tax year 2016 and retroactively increased thresholds for 2015. Taxpayers affected by the 2015 retroactive increase have been contacted directly. You can find more information as well as the 2016 tax rates here.

Combined Groups of Related Entities – 2016 Annual Return Functionality Enhancements

If you or the taxpayer you are filing for is filing on behalf of a combined group of related entities, or was part of a combined group for a portion of the tax year, there us added online functionality so most combined groups do not have to file by mail and can more easily report group members.

Combined groups of related entities will need to report their group members in the annual return (rather than through Account Update), including the dates the entities were part of the group, and the extent they are unitary with the group. Tax preparers should have this information ready when filing to facilitate their filing process. For information about what constitutes a combined group of related entities, please see these instructions for the 2016 return here.

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