Business Tax Filings & Payment Deadlines Extended to October 16, 2023 for Disaster Area Taxpayers in California, Alabama and Georgia

IRS: May 15 tax deadline extended to Oct. 16 for disaster area taxpayers in California, Alabama and Georgia

 

IR-2023-33, Feb. 24, 2023

WASHINGTON — Disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Previously, the deadline had been postponed to May 15 for these areas.

 

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) in these three states. There are four different eligible FEMA declarations, and the start dates and other details vary for each of these disasters. The current list of eligible localities and other details for each disaster are always available on the Tax Relief in Disaster Situations page on IRS.gov.

 

The additional relief postpones until Oct. 16, various tax filing and payment deadlines, including those for most calendar-year 2022 individual and business returns. This includes: Individual income tax returns, originally due on April 18; Various business returns, normally due on March 15 and April 18; and returns of tax-exempt organizations, normally due on May 15.

 

Among other things, this means that eligible taxpayers will also have until Oct. 16 to make 2022 contributions to their IRAs and health savings accounts.

 

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until Oct. 16, 2023, to file their 2022 return and pay any tax due.

 

The Oct. 16 deadline also applies to the estimated tax payment for the fourth quarter of 2022, originally due on Jan. 17, 2023. This means that taxpayers can skip making this payment and instead include it with the 2022 return they file, on or before Oct. 16.

 

The Oct. 16 deadline also applies to 2023 estimated tax payments, normally due on April 18, June 15 and Sept. 15. It also applies to the quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31.

 

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other returns, payments and tax-related actions qualifying for the additional time. Taxpayers in the affected areas do not need to file any extension paperwork, and they do not need to call the IRS to qualify for the extended time. Federal Emergency Management Agency (FEMA)

 

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

 

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities 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 on either the return for the year the loss occurred or the return for the prior year. See Publication 547, Casualties, Disasters, and Thefts 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 information on disaster recovery, visit DisasterAssistance.gov.

 

Page Last Reviewed or Updated: 24-Feb-2023


 

IRS Announces Tax Relief for Victims of Severe Winter Storms, Flooding, Landslides, and Mudslides in California

 

Updated 2/24/23: This news release has been updated to change the filing and payment deadlines from May 15, 2023 to October 16, 2023.

 

Updated 2/23/23: This news release has been updated to include Alpine County.

 

Updated 2/17/23: This news release has been updated to include Amador, Del Norte, El Dorado, Inyo, Madera, Mariposa, Napa, Nevada, San Diego, San Francisco, Solano, Stanislaus, Sutter, Tehama, and Tuolumne counties.

 

Updated 2/2/23: This news release has been updated to include Alameda, Butte, Colusa, Contra Costa, Fresno, Glenn, Humboldt, Los Angeles, Marin, Mendocino, Placer, Santa Clara, Siskiyou, Sonoma, Trinity, and Yolo counties.

 

Updated 1/27/22: This news release has been updated to include San Benito, San Mateo, Tulare and Ventura counties.

 

CA-2023-02, January 24, 2023

 

WASHINGTON — Victims of severe winter storms, flooding, landslides, and mudslides beginning December 27, 2022, now have until October 16, 2023, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

 

Following the disaster declaration issued by the Federal Emergency Management Agency, individuals and households affected by severe winter storms, flooding, landslides, and mudslides that reside or have a business in Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Inyo, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Nevada, Placer, Sacramento, San Benito, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, San Diego, San Francisco, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, and Yolo counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after December 27, 2022, and before October 16, 2023, are granted additional time to file through October 16, 2023.

 

As a result, affected individuals and businesses will have until October 16, 2023, to file returns and pay any taxes that were originally due during this period. This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18, 2023. Among other things, this means that eligible taxpayers will have until October 16 to make 2022 contributions to their IRAs and health savings accounts.

 

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1, 2023, will now have until October 16, 2023, to file their 2022 return and pay any tax due.

 

The October 16, 2023, deadline applies to the quarterly estimated tax payments, normally due on January 17 and April 18, 2023. 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 October 16.

 

The October 16, 2023, deadline also applies to the 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 December 27, 2022, and before January 11, 2023, will be abated as long as the tax deposits were made by January 11, 2023.

 

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.

 

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 the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.

 

Covered Disaster Area

The localities listed above constitute a covered disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2) and are entitled to the relief detailed below.

 

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. §301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

 

Under section 7508A, the IRS gives affected taxpayers until October 16, 2023, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after December 27, 2022, and before October 16, 2023, are granted additional time to file through October 16, 2023.

 

Affected taxpayers that have an estimated income tax payment originally due on or after December 27, 2022, and before October 16, 2023, are postponed through October 16, 2023, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before October 16, 2023.

 

The IRS also gives affected taxpayers until October 16, 2023, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018), that are due to be performed on or after December 27, 2022, and before October 16, 2023, are granted additional time to file through October 16, 2023.

 

This relief also includes the filing of Form 5500 series returns that were required to be filed on or after December 27, 2022, and before October 16, 2023, are postponed through October 16, 2023, in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

 

Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after December 27, 2022, and before January 11, 2023, will be abated as long as the tax deposits were made by January 11, 2023.

 

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. See Publication 547 for details. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and Thefts and its instructions. Affected taxpayers claiming the disaster loss on their return should put the Disaster Designation, “California severe winter storms, flooding, landslides, and mudslides“, in bold letters at the top of the form. Be sure to include the FEMA disaster declaration number, FEMA-4683-DR, on any return. See Publication 547 for details.

 

Other Relief

The IRS will waive the usual fees and requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation, California severe winter storms, flooding, landslides, and mudslides, in bold letters at the top of Form 4506, Request for Copy of Tax Return , or Form 4506-T, Request for Transcript of Tax Return, as appropriate , and submit it to the IRS.

 

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, IRS.gov.

 

Page Last Reviewed or Updated: 24-Feb-2023


 

Business Tax Filings & Payment Deadlines Extended to 05/15/23

 

The IRS announced yesterday that California individuals and businesses in any county covered by a federal emergency declaration due to conditions resulting from the current severe storms, will have until May 15, 2023 to file various federal individual and business tax returns and make tax payments. (FEMA Declaration 3691-EM)

 

The delay to May 15, applies to tax filings and payments that would ordinarily have a deadline of April 15 or earlier in 2023. This includes individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18, 2023.  The May 15, 2023  extension also applies to the quarterly estimated tax payments normally due on January 17, 2023 and April 18, 2023. Individual taxpayers can skip making the fourth estimated tax payment due January 17, 2023 and instead include it with the 2022 return they file on or before May 15, ( IRS Announcement, IR-2023-03, January 10, 2023)

 

For businesses, the filing of quarterly payroll and excise tax returns, ordinarily due January 31 and April 30, can also be delayed until May 15th.  However payroll and excise tax deposits due January 8 must still be paid by January 23, 2023 in order to avoid penalties.

 

Individuals that reside in or have a business in one of the following FEMA designated counties qualify for the above tax relief: 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 Obspo, San Mateo, Santa Barbara, Santa Clara, Dsnts Crua, Solano, Sonoma, Stanislaus, Sutter, Tehama, Ventura, Yolo and Yuba.

 

This is an evolving situation and additional Counties may be designated as disaster areas and added to this list. To get the most up-to-date and current information, Contractors should consult with their own legal and/or financial advisors about  company-specific questions on how best to proceed going forward.

 

This content was provided by WPCCA legal counsel and is for general informational purposes only. Readers should contact their own professional counsel for company specific matters in the relevant jurisdiction.

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