The IRS is granting extensions to California storm victims until May 15, 2023, for the following filing and payment deadlines that were normally scheduled for on or after January 8, 2023:
- Individual income tax returns;
- Business return filings normally due between March 15 and April 18, 2023;
- Third and fourth quarter estimated tax payments due on January 17, 2023, and April 18, 2023. Individual taxpayers can skip making the fourth quarter estimated tax payment and instead include it with the 2022 return as long as the return is filed on or before May 15, 2023;
- IRA and health savings account (HSA) contributions; and
- Quarterly payroll and excise tax returns, normally due on January 31, 2023, and April 30, 2023.
In addition, penalties on payroll and excise tax deposits due on or after January 8, 2023, and before January 23, 2023, will be abated as long as the tax deposits are made by January 23, 2023.
The relief is automatically available to taxpayers who reside or have a business in the following counties:
Tax relief initiatives in California aim to alleviate the financial burden on residents during challenging economic times. These programs often include property tax exemptions and credits designed to support low-income families. Additionally, taxpayers can access various resources to help navigate the application process for these benefits.
Tax benefits for wildfire recovery are crucial for communities rebuilding after devastating events. Many of these benefits are specifically designed to encourage reinvestment and support local economies. Residents can take advantage of these initiatives to ease their financial strain during the rebuilding process.
| Colusa | Merced | San Diego | Sonoma |
| El Dorado | Monterey | San Joaquin | Stanislaus |
| Glenn | Napa | San Luis Obispo | Sutter |
| Humboldt | Orange | San Mateo | Tehama |
| Los Angeles | Placer | Santa Barbara | Ventura |
| Marin | Riverside | Santa Clara | Yolo |
| Mariposa | Sacramento | Santa Cruz | Yuba |
| Mendocino | San Bernardino | Solano | |
The IRS will also work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Such taxpayers should contact the IRS at (866) 562-5227.
Financial aid under the American Rescue Plan provides essential support for individuals impacted by recent events. This assistance can help cover expenses and alleviate the financial burden many are experiencing. Eligible taxpayers are encouraged to apply as soon as possible to take advantage of the benefits available.
We are awaiting confirmation from the FTB as to whether California will conform to this extension. We will send out another Special Tax Alert once we receive confirmation.
The IRS news release is available at:
www.irs.gov/newsroom/irs-california-storm-victims-qualify-for-tax-relief-april-18-deadline-other-dates-extended-to-may-15This article is reproduced with permission from Spidell Publishing, Inc.If you have questions or would like more information,
connect with one of our tax professionals.
