Extended tax deadlines for California storm victims
The Internal Revenue Service (IRS) has provided further extensions for tax deadlines to support Californians affected by recent natural disasters.
Announcement highlights
In response to the severe weather events in California, the IRS has extended the tax filing and payment deadlines to Nov. 16, 2023. This decision comes after the initial postponement from the regular spring due dates to Oct. 16.
"The IRS stands with the residents of California during these challenging times, offering extended deadlines to ease the burden on those affected by the storms." - IRS
Areas covered
The relief covers 55 out of 58 counties in California, with the exception of Lassen, Modoc, and Shasta counties.
This decision is based on multiple FEMA disaster declarations related to winter storms, flooding, landslides, and mudslides over several months.
Which returns and payments are affected?
The Nov. 16 deadline applies to:
- 2022 individual income tax returns and payments originally due on April 18.
- 2022 contributions to IRAs and health savings accounts for eligible taxpayers.
- Quarterly estimated tax payments due on April 18, June 15, and Sept. 15.
- Calendar-year 2022 returns for partnerships, S corporations, corporations, and fiduciary income tax.
- Returns filed by tax-exempt organizations normally due in 2022.
- Quarterly payroll and excise tax returns due on specific dates in 2022.
How to avail the relief?
The IRS will automatically grant filing and penalty relief to taxpayers located in the disaster area. However, if a taxpayer has moved after filing their return or if their necessary records are located in the affected area, they might need to contact the IRS directly.
Pro Tip for US Expats: US expatriates with financial interests in the affected areas should ensure they are updated on these changes. It's advisable to consult with tax pros who are well-versed in both US and California tax regulations during such events.
Additional tax provisions
Disaster-related losses
Taxpayers in federally declared disaster areas can claim uninsured or unreimbursed disaster-related losses on their 2022 or 2023 returns.
They have an extended period to make this election.
Qualified disaster relief payments
Payments received from government agencies for necessary personal, family, living, or funeral expenses, or for home repairs, are generally excluded from gross income.
Retirement plans and IRAs
Affected taxpayers with retirement plans or IRAs may be eligible for additional relief, such as special disaster distributions or hardship withdrawals. Each plan has specific guidelines for participants.
Also read - Self-Directed IRA (SDIRA): Every detail to know
Conclusion and further info
The tax relief is a part of the federal response to the damage caused by these disasters, based on local damage assessments by FEMA.
For more information on disaster recovery, visit disasterassistance.gov.