While many Californians and area farmers have been relieved to receive substantial rainfall, we are now faced with the aftermath of receiving it in mass. The recent storms that are 400-600% above average for this time of year have been catastrophic for many areas that have seen flooding, mudslides, evacuations, and even major losses.
To provide relief, 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 normally due April 18, 2023;
- 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 normally due April 18, 2023; 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.
Relief is available to taxpayers with businesses in or residing in these counties:
The IRS will also work with any taxpayer who lives outside the disaster area but whose necessary records are impacted by the affected counties during the postponement period. Such taxpayers should contact the IRS at (866) 562-5227.
GC is awaiting confirmation from the Franchise Tax Board on whether California will conform to this extension. Look for an update from our team when we know more. For more information, see the IRS news release.
Credit: This article is reproduced with permission from Spidell Publishing, Inc.