IRS Extends Tax Filing Date To May 15th For Californians affected by Severe Storms and Floods
Recently ABC 7 news reported that the IRS says Californians who were affected by the intense storms, flooding and mudslides will get more time to file this year’s taxes. On January 10th, 2023, the IRS announced disaster relief that extends federal tax deadlines for taxpayers in certain California counties to May 15, 2023. This relief is in response to the severe winter storms, flooding and mudslides experienced in the affected counties.
The agency has announced that tax returns will be accepted starting January 23.. For most taxpayers, the deadline to submit your taxes is April 18, but for those in disaster areas, it will be extended to May 15.
The disaster declaration issued by the Federal Emergency Management Agency (FEMA) on Monday allows the IRS to postpone deadlines for taxpayers who live in affected areas.
Residents may also be to claim disaster-related causality losses on their federal income tax return.
Who is eligible for the federal tax deadline relief
The covered disaster area includes the following counties:
Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo and Yuba counties.
The federal tax relief applies to:
- Individuals who live in the covered disaster area
- Businesses (including tax-exempt organizations) whose principal place of business is located in the covered disaster area
- Certain relief workers in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster
- Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline are in the covered disaster area
Affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due. That also applies to taxpayers, not in the covered disaster area, but whose records necessary to meet a deadline are in the covered disaster area. The May 15, 2023, deadline also applies to the quarterly estimated tax payments normally due Jan. 17, 2023, and April 18, 2023, as well as quarterly payroll and excise tax returns normally due Jan. 31, 2023.
In addition, penalties on payroll and excise tax deposits due on or after Jan. 8, 2023, and before Jan. 23, 2023, will be abated as long as the tax deposits are made by Jan. 23, 2023.
The relief does not extend to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series, Forms 1042-S, 3921, 3922 or 8027, or to employment and excise tax deposits, with few exceptions. However, penalties on deposits due on or after Jan. 8, 2023, and before Jan. 23, 2023, will be abated if the tax deposits are made by Jan. 23, 2023.
Affected taxpayers with casualty losses attributable to the federally declared disaster may elect to take losses into account either in the tax year the loss occurred or the prior tax year.
California state tax deadline relief
At the time of this writing, the California Franchise Tax Board (FTB) has not yet issued a release to indicate it will provide a deadline extension for California state income or franchise tax filings and payments by taxpayers impacted by the winter storms. California state taxpayers should plan to make their appropriate California income tax payments by Tuesday, Jan. 17, 2023, unless the FTB acts on or before that date.
California did issue two narrower relief declarations:
- The California Employment Development Department (EDD) informed employers statewide that they are eligible to request an extension of up to two months to file their state payroll reports and/or deposit payroll taxes without interest or penalty. A written request for extension must be received by the EDD within two months from the original delinquent date of the payment or return.
- The California Department of Tax and Fee Administration (CDTFA) issued relief including: (1) an extension of up to three months to file and pay taxes or fees, (2) relief from penalty and interest, and (3) providing of replacement copies of lost tax records free of charge. Additionally, the CDTFA indicated it could also extend the deadline for filings delayed by disruption of service from the U.S. Postal Service, private mail and freight companies. Taxpayers seeking relief must apply.
Please feel free to reach out to Huckabee CPA if you have questions regarding how the federal and California tax deadline relief affects you.