The IRS has extended tax deadlines for the majority of Californians until November 16, 2023, due to the impacts of last season’s severe weather events. Initially set for the spring and then pushed to October 16, this extension provides Californians more time amidst recovery from various natural calamities. Consequently, individuals and businesses across California have an extended period until November 16 to submit their 2022 tax returns and make any necessary payments.
This extension is applicable for residents in 55 out of 58 counties in California. The only exceptions are Lassen, Modoc, and Shasta counties. This decision by the IRS was influenced by FEMA’s disaster declarations, which highlighted the extensive damage caused by storms, floods, and landslides over several months.
Extended Tax Deadlines: IRS Responds to FEMA’s Disaster Declarations in California
Historically, the IRS offers such extensions, encompassing various tax-related deadlines, in regions that FEMA designates as disaster zones. Residents and businesses in these regions automatically receive the extension, negating the need for a formal request. For real-time updates on eligible regions, one can refer to the IRS’s disaster relief webpage.
The following items are included in the extension:
- Individual tax returns and payments for 2022, initially due on April 18.
- Contributions to 2022 IRAs and health savings accounts for qualifying taxpayers.
- Quarterly estimated tax installments initially scheduled for April 18, June 15, and September 15.
- Partnership and S corporation returns for 2022, usually due by March 15.
- Corporate and fiduciary tax returns and payments for 2022, typically due on April 18.
- Quarterly payroll and excise tax returns usually expected on May 1, July 31, and October 31.
- Annual tax returns by tax-exempt organizations, typically due by May 15 for 2022.
More details and a comprehensive list can be found on the IRS disaster relief webpage.
How can taxpayers utilize this relief?
Affected taxpayers with a registered IRS address in the disaster-stricken regions will be automatically granted the extended deadline and won’t face any penalties for late filing. Should there be any discrepancies, such as a recent move to the disaster zone, taxpayers might receive a late fee notice. If so, they should contact the IRS to clarify the situation.
For those residing outside the affected areas but possess necessary records within the disaster zones, the IRS offers assistance. This also applies to personnel involved in relief activities. They can reach out to the IRS directly at 866-562-5227 for more information.
More Provisions for Disaster-Affected Taxpayers
Affected individuals and businesses can claim their uninsured or non-reimbursed disaster-linked losses in their tax returns for either the current year or the preceding one. There’s also a provision to make a decision about this within six months post the original federal tax return due date for the disaster’s year. For more information, refer to IRS Publication 547.
Payments received as disaster relief from government agencies, meant for essential personal or property-related expenses, are typically exempt from being counted as gross income. More details are available in IRS Publication 525.
For those enrolled in retirement plans or IRAs, additional relief measures are in place. For instance, some may qualify for special disaster-related distributions, exempt from the typical early distribution tax. Others might be eligible for hardship withdrawals, based on their specific plan or IRA conditions.