The IRS announced tax relief for California storm victims under the federal emergency declaration. This relief includes additional time to file and/or pay taxes. Below is a summary of the relief and important details, as released by the IRS.
Currently, this relief applies if residence or business is located in one of the following counties: Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo and Yuba.
If in those areas, certain deadlines falling on or after January 8, 2023 and before May 15, 2023 are automatically extended to May 15, 2023, including:
- Q4 estimated taxes due 1/17/23 and 2023 Q1 estimated taxes due 4/18/23
“This means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due January 17, 2023, and instead include it with the 2022 return they file, on or before May 15.” - 2022 individual tax returns and extensions due 4/18/23
- 2022 business returns due 3/15/23 and 4/18/23 (including corporate, estate, trust, partnership, S-Corp, gift, tax-exempt orgs)
- 2022 contributions to IRAs and health savings accounts
- Quarterly payroll and excise tax returns due 1/31/23
- Payroll and excise tax deposits due on or after 1/8/23 and before 1/23/23 will be abated as long as the tax deposits are made by 11/22/23.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside any of the counties should call the IRS disaster hotline at 866-562-5227 to request this tax relief.
If an affected taxpayer receives a late filing or late payment penalty from the IRS for a due date that falls within the postponement period, call the phone number on the notice to have the IRS abate the penalty.
Important Disclosures: Nothing in this article is intended to provide, and you should not rely upon it for, accounting, legal,tax or investment advice or recommendations. We are not making any specific recommendations regarding any financialplanning or tax strategy, and you should not make any financial planning or tax decisions based on the information in this article. The intention of this article is educational. This article is not a comprehensive or complete summary of considerations regarding its subject matter. Each individual is in a different situation and has different items to address, and the options in this article are not appropriate for everyone. Please consult your Freestone client advisor and a tax professional regarding options specific to your needs.