With the 2024 tax season drawing to a close, we at Mraz Tax Solutions want to provide an important reminder about upcoming extension deadlines. While some parts of California have received special disaster relief due to the recent Los Angeles fires, Orange County taxpayers generally do not qualify for those specific extensions. It is important to file your returns on time to avoid penalties and interest.

Our practice, based in Rancho Santa Margarita and proudly serving clients across Orange County, from Irvine to Laguna Beach to Mission Viejo, is now scheduling our remaining limited openings. Arrange your appointment soon so we can complete the timely preparation and e-filing of your returns.

Key Deadlines for Orange County Taxpayers:

For Business Filings (S Corporations, Partnerships, and Calendar-Year Corporations):

Federal and California Filing Deadline: September 15, 2025

• This applies to 2024 calendar-year partnership returns (Form 1065) and S corporation returns (Form 1120-S) that received an automatic six-month extension from their original March 15, 2025, due date.
• Similarly, calendar-year C corporation returns (Form 1120) extended from their original April 15, 2025, due date are also due by September 15, 2025 (federal) and October 15, 2025 (California - automatic seven-month extension).
• Important: While these are filing extensions, any tax payments for these entities were generally due on their original dates (March 15, 2025, for partnerships and S-corps; April 15, 2025, for C-corps). Late payment penalties and interest accrue from the original due date.

For Individuals in Orange County:

Federal and California Filing Deadline: October 15, 2025

• This is the extended deadline for your 2024 Individual Income Tax Return (Form 1040) and related schedules, if you filed an extension by April 15, 2025.
• This also applies to any remaining 2024 estimated tax payments (though most quarterly payments would have been due earlier in the year) and contributions to IRAs/HSAs for the 2024 tax year.
• A quick point to remember: An extension to file is not an extension to pay. If you owed taxes for 2024, those payments were due on April 15, 2025. Penalties and interest began accruing from that date on any underpayment.

Why Timely Filing is Important: Penalties and Interest

Missing an extension deadline, or failing to pay by the original due date, can lead to significant financial penalties from both the IRS and the California Franchise Tax Board (FTB).

Failure to File Penalty:

• Individuals: Generally 5% of the unpaid taxes for each month or part of a month your return is late, up to a maximum of 25%. If more than 60 days late, a minimum penalty applies (for returns due after 12/31/2024, the lesser of $510 or 100% of the unpaid tax).
• Partnerships & S-Corporations: For each month or part of a month the return is late, a penalty of $245 per partner/shareholder (for returns due after 12/31/2024) is assessed, up to 12 months. This can add up quickly!

Failure to Pay Penalty:

• Generally 0.5% of the unpaid taxes for each month or part of a month that taxes remain unpaid, with a maximum of 25%. This penalty applies from the original due date of the tax, even if you filed an extension to file.

Interest:

• Interest is charged on unpaid taxes from the original due date until the tax is paid in full. This applies to both the tax itself and any accrued penalties. Interest rates are set quarterly by the IRS and semi-annually by the FTB and can fluctuate. For the first half of 2025, the California FTB’s interest rate for underpayments is 8%.

Get Your Timely Filing Done Today

At Mraz Tax Solutions, we are dedicated to providing thorough, California-focused guidance for our clients. As these deadlines rapidly approach, our availability to prepare and e-file both business and personal tax returns is very limited.

To reserve your spot and help with timely filing, please gather all relevant documentation (income statements, business records, estimated payments made, etc.) and contact our Rancho Santa Margarita office promptly. Getting your appointment set up now helps with timely filing and helps you avoid unnecessary penalties and interest.

We can help with your taxes!

Remember that tax laws and filing requirements can change, so it’s essential to consult the latest guidelines from the relevant tax agency or seek assistance from a qualified tax professional to ensure you meet all the necessary requirements and deadlines.

Mraz Tax Solutions offers free initial consultations and complete tax services for individuals, self-employed, and small businesses.