IRS Extends April 18 Tax Deadline To May 15 For California Storm Victims

Flooded road in San Mateo County, California February 2017

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California storm victims now have until May 15, 2023, to file various federal and business tax returns and make tax payments, the Internal Revenue Service announced. The IRS is providing relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and families who reside or have a business in Colusa, El Dorado, Glenn, Humboldt, Los Angeles, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Bernardino, San Diego, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Ventura, Yolo and Yuba Counties qualify for tax relief. Other areas added later to the disaster area will also be eligible for the same relief. The current list of eligible localities is always available on the disaster relief page at IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on January 8, 2023. As a result, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes which must first be paid during this period. . This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns, which are normally due on March 15 and April 18. Among other things, this means that eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and health savings accounts.

Additionally, farmers who choose to waive estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due. The May 15, 2023 deadline also applies to quarterly estimated tax payments, which are normally due on January 17, 2023 and April 18, 2023. This means that individual taxpayers can skip the fourth quarter estimated tax payment, which it should normally end in January. 17, 2023, and instead include it with the 2022 return they file on or before May 15.

The May 15 deadline also applies to quarterly payroll and excise returns normally due on January 31 and April 30, 2023. In addition, penalties for payroll and excise deposits due on or after January 8 2023 and before January. 23, 2023, will be reduced as long as tax deposits are made by January 23, 2023.

The IRS disaster assistance page has details on other tax-related returns, payments, and actions that qualify for overtime. The IRS provides automatic filing and penalty relief for any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to obtain this relief. However, if an affected taxpayer receives a late notice or a late payment penalty notice from the IRS that has an original or extended filing, payment or filing date that falls within the grace period, the taxpayer should call the number at notice to receive the fine. softened.

Additionally, the IRS will work with any taxpayer who lives outside the disaster area but whose records needed to meet a deadline that occurs during the grace period are located in the affected area. Taxpayers who qualify for relief who live outside the disaster area should contact the IRS at 866-562-5227. This also includes aid workers who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them either on the return for the year the loss occurred (in this case, the year 2023 normally filed next year), or the return for the previous year (2022, normally filed this tax season). Be sure to write the FEMA statement number – 3691-EM – on any return claiming a loss. See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For disaster recovery information, visit disasterassistance.gov.