As per California winter storms tax extension, victims of California winter storms have until October 16, 2023, to file various business and personal taxes.
Massive winter storms lashed California, affecting dozens of counties statewide. So, the Internal Revenue Service (IRS) postponed deadlines to file their taxes in an effort to provide some relief to most Californians.
Now, people have many questions in mind, like – Am I eligible? What type of taxes are affected by the extension? Could I claim disaster loss?
Read on to find answers to all your questions:
Areas Affected by California Winter Storm
The tax extension applies to individuals and businesses in the Federal Disaster Areas in California. The disaster areas include:
| Alpine | Inyo | Plumas | Sonoma |
| Amador | Lake | Sacramento | Stanislaus |
| Butte | Los Angeles | San Benito | Trinity |
| Calaveras | Madera | San Bernardino | Tulare |
| Del Norte | Mariposa | San Francisco | Tuolumne |
| El Dorado | Mendocino | San Joaquin | Yuba |
| Fresno | Mono | San Mateo | |
| Glenn | Monterey | San Luis Obispo | |
| Humboldt | Napa | Santa Barbara | |
| Imperial | Nevada | Santa Clara | |
| Kern | Orange | Santa Cruz | |
| Kings | Placer | Sierra |
Extended Deadlines
As per Section 7508A, affected taxpayers – individuals and businesses – will have until October 16, 2023, to file their tax returns and make tax payments.
Eligible Californians should be affected by severe winter storms, landslides, flooding, and mudslides occurring in the state. For these taxpayers, certain deadlines between March 8, 2023, and October 16, 2023, are extended through October 16, 2023.
Types of Taxes & Tax Returns Affected
The extensions apply to the following types of taxes:
- 2022 individual income tax returns due on April 18, 2023.
- 2022 business returns are normally due on March 15 and April 18.
- Quarterly estimated tax payments due on April 17, 2023, and June 15, 2023.
- Quarterly payroll and excise tax returns normally due on April 30, 2023.
- Tax-exempt organizations, operating on a calendar-year basis, that have a 2022 return due on May 15, 2023.
The extension is applicable to individuals, corporations, estate and trust income tax returns, partnership returns, S corporation returns, estate, gift, and generation-skipping transfer tax returns. Moreover, farmers now have until October 16, 2023, to file their 2022 return and pay any tax due.
Penalties
Affected taxpayers with an income tax payment due after March 8, 2023, and before October 16, 2023, will not face penalties for failure to pay estimated tax installments, provided they make the payments by October 16, 2023.
How to Claim Disaster-Related Losses on Tax Return
Affected taxpayers who suffered disaster-related losses can claim the losses on either the return for the year the loss occurred or the return for the prior year. See Publication 547 for details.
Key requirements:
- Include the FEMA declaration number (FEMA- 3591-EM)
- Include Disaster Designation ” California, severe winter storms, flooding, and mudslides” in bold letters on the top of the form.
- Submit the form to the IRS.
Individuals may choose to deduct personal property losses not covered by insurance or other reimbursements.
Final Notes
The IRS may reach out to affected taxpayers who file claims for their losses on tax returns. The taxpayers have to explain how the disaster impacts them. Accordingly, the IRS can provide appropriate consideration to their cases.
In addition, the IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers who need them to apply for benefits or to file amended returns claiming casualty losses.
Do you need assistance with filing your tax return or claiming your losses due to California winter storms? Consult with a tax professional for more accurate and personalized advice on the process.
