The Internal Revenue Service (IRS) announced on Tuesday that 2022 federal income and business tax returns, as well as tax payments, would have their filing dates extended by one month to May 15, 2023 in 31 counties due to the storms and subsequent damage that affected most of California.
Specifically, all counties covered by the federal emergency declaration will receive the extension. This currently includes the counties of 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 for individuals and households that reside there or have a business there. Other counties may also be added to the list should they later be added to the disaster area, with future updates coming up on the IRS website.
According to the IRS, the extended deadline also goes beyond normal tax filings, but also covers tax payments, farm taxes, and payroll and excise tax returns. The statement made by the IRS on Tuesday explained, “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 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. Among other things, this means that eligible taxpayers will have until May 15 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 May 15, 2023, to file their 2022 return and pay any tax due. The May 15, 2023, deadline also applies to the quarterly estimated tax payments, normally due on January 17, 2023, 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 May 15.”
“The May 15 deadline also applies to the quarterly payroll and excise tax returns normally due on January 31 and April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after January 8, 2023, and before January 23, 2023, will be abated as long as the tax deposits are made by January 23, 2023.”
In addition to the IRS announcements, state and local level program deadlines and start dates could also be affected should things worsen. EDD payroll tax extensions and the waiving of the waiting week for unemployment benefits, for example, could be initiated should the state declare the storms to be a disaster. Currently, the most recent disaster to be covered by EDD disaster-related services is the Humboldt County Earthquake from last year. However, with Governor Gavin Newsom declaring a state of emergency due to the storms, counties could be added to the list soon.
“Believe it or not, the IRS, as well as other tax collecting agencies, are very understanding about disasters and other events that cause the filer to need extra time,” accountant and tax filing professional Curt Atwood told the Globe on Wednesday. “Pay attention to the dates, and call or e-mail to be certain or to ask if your situation garners a tax extension. But, generally, if you give the effort, they will too. Just remember that this is an emergency extension that only covers about half the state right now, so be careful.”
“As long as you stay on top of everything, make sure you get all needed stubs and documentation in, you’ll be fine with the new deadline. Just don’t take the date for granted!”
Other counties may soon be added to the disaster area list due to continued storms and the affects of the storm currently being played out statewide.
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