There have been many federal disaster situations around the U.S. these past years. See if you qualify to pay taxes and file tax returns after the original deadline.
See Tax Relief in Disaster Situations. For example IRS: May 15 tax deadline extended to Oct. 16 for disaster area taxpayers in California, Alabama and Georgia.
Check with your state(s) to see if they follow the IRS disaster relief —for example, More Time to File State Taxes for Californians Impacted by December and January Winter Storms.
Here’s content from Darren Neuschwander, CPA, Managing Member of Green, Neuschwander & Manning, LLC.
March 9, 2023: Due to the California storms, the IRS and CA Franchise Tax Board (FTB) released numerous press releases relating to the automatic filing extension. In plain English, this email is meant to clarify the extended deadlines as they stand now.
Affected taxpayers
Any taxpayer who resides in, or whose principal place of business is located in, any affected California county is granted an automatic extension of time to file and pay most federal and California tax obligations until October 16, 2023. These taxpayers do not have to be directly affected by the storms.
All counties in California are listed as affected counties except:
- Imperial;
- Kern;
- Lassen;
- Modoc;
- Plumas;
- Shasta; and
- Sierra.
The extension deadline applies for federal and state tax filing/payment extension purposes if a county is listed in either IRS announcement (CA-2023-01 or CA-2023-02).
Returns
The automatic extension applies to the filing due dates for any of the following types of returns that have a due date (original or extended due date) on or after January 8, 2023, through October 16, 2023:
- Individual income tax returns;
- • Corporate income tax returns;
- • Partnership income tax returns;
- • Estate and trust income tax returns;
- • Estate tax returns;
- • Gift and generation-skipping transfer tax returns;
- • Annual information returns of tax-exempt organizations;
- • Payroll tax returns;
- • Excise tax returns; and
- • Employee benefit plan returns (Form 5500 series).
Payments
The automatic extension applies to any payments for the listed return types for payments due on or after January 8, 2023, through October 16, 2023, except for payroll tax deposits. The payment extension for payroll tax deposits only applied to deposits due from January 8, 2023, through January 23, 2023, and those deposits were due on January 23, 2023.
In other words, all payments for the above return types due on or after January 8, 2023, through October 16, 2023, are due on October 16, 2023, without incurring late payment penalties. This includes estimated tax payments and the California passthrough entity elective tax March 15, 2023, payment (for calendar-year taxpayers) as well as the June 15, 2023, prepayment for the 2023 tax year. Retirement plan contributions, including employer contributions, are extended to October 16, 2023.
Taxpayers can file their returns now and pay the tax later (although notices may still be sent).
The IRS press releases are available at:
www.irs.gov/newsroom/tax-relief-in-disaster-situations
California press releases are available at:
The FTB’s extension-related FAQs are available at:
www.ftb.ca.gov/file/when-to-file/help-with-disaster-relief.html
A Section 475 MTM election for 2023
The above disaster relief might not apply to 2023 Section 475 MTM elections due on the original tax deadlines of 2022 tax returns. To play it safe, try to file the 2022 extension with the 2023 Section 475 election attached by April 18, 2023, for individuals and March 15, 2023, for partnerships and S-Corps.