IRS Extends Deadline for California Taxpayers Impacted by Natural Disasters

Over the past few days, the IRS has issued several updates regarding tax relief for victims of severe winter storms, flooding, landslides, and mudslides. The last updated news release on February 24, 2023, states that affected taxpayers now have until October 16, 2023 to file various individual and business tax returns and make tax payments.

Affected individuals and businesses will have until October 16, 2023, to file returns and pay any taxes, including 2022 individual income tax returns due on April 18 and 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.

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 IRS also announced that the Oct. 16 deadline also applies to 2023 estimated tax payments, normally due on April 18, June 15 and Sept. 15. These payments will now be due on October 16, 2023, to be considered timely paid.

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.

Individuals who live and businesses (including tax-exempt organizations) whose principal place of business is located in the covered disaster area are deemed affected taxpayers.Taxpayers not in the covered disaster area but whose records necessary to meet 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.

Covered disaster affected by severe winter storms, flooding, landslides, and mudslides includes:

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

Kings, Lake, Mono, Monterey, Napa, Orange, Riverside, San Bernardino, and Yuba