Drenched Californians get Extra Month to File Taxes
The Internal Revenue Service announced tax relief for California residents affected by severe winter storms, flooding, and mudslides. The agency offered taxpayers in the counties covered by the Federal Emergency Management Agency (FEMA) disaster declaration an extra month to pay taxes, which means they will have until May 15.
Who Qualifies?
Individuals and households affected by severe winter storms, flooding, and mudslides that reside or have a business in 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 counties qualify for tax relief.
41 of California’s 58 counties are included in FEMA’s declaration so far. If other counties are added, they will also qualify for the May 15 deadline.
Those living outside the designated disaster area can still qualify for the delayed deadlines if the following conditions are met:
- Records you need to complete your return are inside the area (example: if you own an interest in a partnership or you are a shareholder in an S Corp located in the disaster area)
- Your tax preparer is inside the disaster area and unable to complete the work on time
- You are helping the government or a recognized charity with relief efforts in the area
If you meet one of the three conditions above, and want to receive the postponement, you must call the IRS’ Disaster Hotline at 866-562-5227 and let them know your necessary records are in the covered area.
What tax returns and tax payments are included in the delay?
- Individual income tax returns normally due on April 18
- Business tax returns normally due on March 15 and April 18
- IRA, HSA contributions
- Estimated or interim taxes
- Quarterly payroll and excise taxes normally due on January 31
Does the delay include California taxes?
California’s Franchise Tax Board automatically follows the IRS-extended deadlines to file/pay taxes until the date indicated for the specific disaster, but an official announcement has not been released.
The California Department of Tax and Fee Administration (CDTFA), which oversees sales and excise taxes and various business fees, is offering extensions of up to three months to businesses affected by the latest round of storms. CDTFA isn’t granting a blanket extension. Its website says, “this relief is offered to any taxpayer who was directly affected by the disasters … and who, as a result, cannot meet their filing and payment deadlines.”
We’re here to help
If you have questions about the information outlined above or need assistance, JLK Rosenberger can help. For additional information, call 949-860-9902 or click here to contact us. We look forward to speaking with you soon.
