Good news for most Californians who owe taxes to the federal or state government: The deadline for filing your tax returns and paying your debt has been pushed back to October.
The assistance is available to anyone living or working in the 44 counties covered by the Federal Emergency Management Agency’s emergency declaration. These include Los Angeles, Ventura, and San Diego counties. FEMA’s action came in response to severe winter storms that caused flooding, landslides and mudslides between December 27 and January 31.
State and federal authorities previously pushed the deadline back to May 15. Last week, however, the Tax and Customs Administration postponed it to October 16. Gov. Gavin Newsom announced Thursday that the state is doing the same.
Assistance is automatically offered to anyone whose address is registered with the IRS in a disaster area – no need to request assistance or notify authorities that you are being delayed. If the IRS still sends you a penalty notice for missing an exemption period, the agency advises that you call the number on the notice to have the penalty canceled.
The mid-October postponement applies to anything related to 2022 with an April 17 deadline, including paying deferred tax contributions to an IRA or health savings account. This gives Californians more time to raise the funds needed to maximize those deductions.
Even better for businesses and other claimants paying estimated or provisional taxes, quarterly payroll taxes and excises, or voluntary taxes for pass-through companies — all those payments due before October will also be deferred. This is possible if you file your annual return on or before 16 October.
Granted, if you need to get a refund, you obviously want to do it as soon as possible. Otherwise, give the government an interest-free loan.
According to the IRS, if you live outside the designated disaster area, you can still qualify for the extended deadlines if you meet one of three conditions: Records you need to complete your report are within the area (for example, if you are shareholders of an S corporation within the affected area); Your accountant is in the disaster area and cannot complete the work on time; or help the government or a recognized charity with relief efforts in the area. But you must notify the IRS by calling (866) 562-5227.
Another point: If you incur disaster-related losses that aren’t reimbursed or insured, you can write them off on your 2022 or 2023 tax return, the IRS says. “Be sure to include the FEMA declaration number – [EM-3591] — on any return claiming a loss,” the agency advised. IRS Publication 547 can walk you through the requirements.
For more information, see the Disaster and Emergency Relief for Individuals and Businesses page on the IRS website and the IRS Form 4684 Instructions.
You can also deduct your disaster damages from your state tax return; See Franchise Tax Board Publication 1034 for more information. Write the name of the disaster in blue or black ink at the top of your report or, if you are filing electronically, follow the prompts in the software to enter the disaster information.
As with the IRS, if you receive a late notice after taking advantage of the new deadline, you should call the phone number on the notice and ask for a waiver of the penalty, the governor’s office said.
LA County Assessor Jeff Prang also said more than $10,000 in storm damage could qualify you for a reassessment that lowers your property taxes.
Source: LA Times