Tax Deadlines Extended to October 16
In an effort to provide relief to those who suffered through recent winter storms, the IRS and California FTB have announced that many tax deadlines for affected Californians have been extended to October 16, 2023.
Who does this impact?
Most California individuals, businesses, and tax-exempt organizations are eligible for tax filing and tax payment extensions. Relief is available to any area designated by the Federal Emergency Management Agency (FEMA), for taxpayers in most of California and parts of Alabama and Georgia.
As of today, the following California counties were not designated and are not eligible for this deadline extension: Imperial, Kern, Lassen, Modoc, Plumas, Shasta, and Sierra counties.
The relief postpones various tax filing and payment deadlines until October 16, including:
- Individual tax returns and tax payments (originally due on April 18)
- Quarterly estimated tax payments due January, March, April, June, and September
- Business and other entity tax returns (originally due March or April)
- Pass-through entity elective tax payments (originally due March and June)
When does this take effect?
There are four different eligible FEMA declarations, and the start dates and other details vary for each of these disasters. In California, these extensions apply to deadlines falling on or after January 8, 2023, and before October 16, 2023. The most recent disaster-related announcements can be found on the California FTB website and the IRS’s Tax Relief in Disaster Situations page.
What’s the main takeaway?
Most businesses and individuals in California are likely affected by these changes. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. If you do not reside in California but own a business in California, you may qualify for an extension. The IRS will work with any taxpayer who lives outside the disaster area but whose records are located in the designated area.
Individuals and businesses located in California with out-of-state filing requirements may not be able to avail themselves of federal relief.
You Might Want to File per Usual Deadlines
Although many individuals and businesses in California are included within the designated areas of relief, it might be advisable to file and make payments timely, under the regular statutory due dates. This is because the IRS and California had technical challenges with properly processing returns and payments during similar relief provided in the past (e.g., COVID-19 relief, relief for the 2020 fire victims, etc.).
Talk to Your Advisor ASAP
We urge you to talk with your tax advisor as soon as possible to review your specific situation.