IRS Gives Tax Reprieve To Nearly All Californians

CALIFORNIA — Most of California has received a tax reprieve from the Internal Revenue Service.

At the last minute, the Internal Revenue Service on Monday postponed its Oct. 16, 2023, deadline to file 2022 federal returns and pay any tax due. The new deadline is Nov. 16, 2023.

Fifty-five of California's 58 counties — all except Lassen, Modoc and Shasta counties — qualify, the federal agency announced. The current list of eligible localities is available on the IRS's disaster relief page. As long as an address of record is in a disaster-area locality, individual and business taxpayers automatically get the extra time — without having to ask for it.

The reason for the last-minute extension was not provided.

This wasn't the first 2023 postponement. The April 18 tax deadline was previously pushed back to Oct. 16 as a result of last winter’s natural disasters including severe winter storms, flooding, landslides and mudslides.

Eligible returns and payments for the Nov. 16 date include:

• 2022 individual income tax returns and payments normally due on April 18.
• For eligible taxpayers, 2022 contributions to IRAs and health savings accounts.
• Quarterly estimated tax payments normally due on April 18, June 15 and Sept. 15.
• Calendar-year 2022 partnership and S corporation returns normally due on March 15.
• Calendar-year 2022 corporate and fiduciary income tax returns and payments normally due on April 18.
• Quarterly payroll and excise tax returns normally due on May 1, July 31 and Oct. 31.
• Calendar-year 2022 returns filed by tax-exempt organizations normally due on May 15.

Other returns, payments and time-sensitive tax-related actions also qualify for the extra time. See the IRS disaster relief page for details.

One day after the IRS's extension announcement, the California Franchise Tax Board confirmed the deadline to file state taxes was also pushed back to Nov. 16 for residents and businesses in the 55 affected counties. The due date to file California state tax returns was extended earlier this year to Oct. 16.

"FTB generally conforms to Internal Revenue Service (IRS) postponement periods for presidentially declared disasters," the state agency said.

Taxpayers affected by a presidentially declared disaster can claim a deduction for losses, according to the FTB. Additional information and instructions are available in FTB Publication 1034, 2022 Disaster Loss: How to Claim a State Tax Deduction.

Additional notes

It is possible an affected taxpayer may not have an IRS address of record located in the disaster area, for example, because they moved to the disaster area after filing their return. In these circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Read the full Oct. 16, 2023, IRS press release here.

Read the full Oct. 17, 2023, FTB press release here.