On January 10, 2023, the Internal Revenue Service (IRS) announced disaster relief that extends certain federal tax deadlines for California storm victims to May 15, 2023. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA), which includes the following California 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.
Affected taxpayers
An affected taxpayer includes:
- An individual;
- Any business entity or sole proprietor;
- Any shareholder in an S Corporation.
A taxpayer does not have to be located in a federally declared disaster area to be an “affected taxpayer.” Taxpayers are considered “affected” if records necessary to meet a filing or payment deadline postponed during the relief period are located in a covered disaster area.
Deadlines
The following tax filing and payment deadlines have been extended until May 15, 2023:
- 2022 individual income tax returns due on April 18 (with an original due date between January 8, 2023, and May 15, 2023).
- 2022 business income tax returns with an original due date between January 8, 2023, and May 15, 2023.
- Business returns include: corporate, estate and trust income tax returns, partnership returns, S corporation returns, gift and generation-skipping transfer tax returns, annual information returns of tax-exempt organizations, employment tax returns, and certain excise tax returns.
- Farmers who choose to forgo making estimated tax payments and normally file their returns by March 1, 2023 will now have until May 15, 2023, to file their 2022 return and pay any tax due.
- IRA and health savings account contributions for 2022.
- Quarterly estimated tax payments, normally due on January 17, 2023, and April 18, 2023.
- Quarterly payroll and excise tax returns normally due on January 31, 2023. Payroll tax deposit dates have not been extended. However, 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.
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.
California filing and payment relief
On January 13, 2023, the California Governor’s office announced that California will conform to the filing and payment extensions granted by the IRS for California storm victims.
Unsure if these deadlines impact you or your business? Reach out to your BPM tax advisor or contact us today to discuss your specific situation.
