IRS Announces Filing Extension for California Storm Victims

On January 10, 2023, the IRS announced a tax filing extension for California storm victims in areas designated by the Federal Emergency Management Agency (FEMA). Filing and payment deadlines that were normally scheduled for on or after January 8, 2023 are now extended to May 15, 2023. Subsequently, the California Governor’s office announced that it will conform to these new IRS deadlines.

This relief applies to individual income tax returns normally due on April 18, 2023 and various business return filings normally due on March 15th and April 18th of this year. In addition, individual taxpayers can skip making the fourth quarter 2022 and first quarter 2023 estimated tax payments, normally due on January 17, 2023 and April 18, 2023 respectively, and instead include them with the 2022 returns as long as they are filed on or before May 15, 2023. The extension also applies to IRA and health savings account (HSA) contributions, as well as quarterly payroll and excise tax returns, normally due on January 31st and April 30th.

In addition, if tax deposits are made by January 23, 2023, penalties on payroll and excise tax deposits due on or after January 8th and before January 23rd will be abated.

The California Franchise Tax Board (FTB) will also suspend activity related to mailing collection notices to affected taxpayers for 30 days beginning on January 13, 2023.

This relief will automatically be granted to taxpayers who reside or have a business in the following counties:

If a taxpayer lives outside any of these designated disaster areas but requires records that are located in the affected area that are necessary to meet a deadline occurring during the postponement period, they should contact the IRS at 866-562-5227. Workers that are assisting with the relief activities and are affiliated with a recognized government or philanthropic organization may also want to contact the IRS about accommodations.

Affected businesses can refer to the Disaster Assistance and Emergency Relief for Individuals and Businesses page, which has details on other returns, payments and tax-related actions qualifying for the additional time.

Finally, individuals and businesses in any of the designated disaster areas who incurred uninsured or unreimbursed disaster losses can claim them on the tax return for the year the loss occurred or on the return for the prior year. Those electing to do so should write the FEMA declaration number – 3691-EM – on any return claiming a loss.

To further discuss this announcement, contact your Anchin Relationship Partner or Brent Lessey, Tax Partner, at [email protected].