The Internal Revenue Service (IRS) declared that it would be extending the tax inflation relief deadline for people and businesses in affected areas in response to this California storm.
Early in 2023, California was hit by a rare winter storm that severely disrupted the lives of millions of people and caused extensive power outages. Taxpayers in a few California counties that have been designated as government disaster areas as a result of the California storm are eligible for the extension for tax inflation relief. Los Angeles, Orange, San Bernardino, San Diego, Riverside, Santa Barbara, and Ventura are some of these counties.
Individual taxpayers had until April 15 to file their tax inflation relief, but the IRS has extended this deadline for those impacted taxpayers until June 15. As a result, taxpayers with residences or businesses in the impacted counties now have an additional two months to submit their federal tax returns and pay any outstanding taxes without incurring penalties.
Businesses in the impacted regions have received assistance from the IRS as well. Partnerships and S corporations had until March 15 to file their tax inflation relief, but for those businesses, that date has been extended to May 15. C corporations had until April 15 to file their taxes, but for those businesses, that date has been extended to June 15.
It’s crucial to remember that the extension for filing taxes only pertains to taxpayers who reside in declared disaster areas. Outside of these areas, taxpayers are still required to submit their tax returns and pay any back tax inflation relief by the initial due date.
Taxpayers who are unable to meet the extended deadline may submit Form 4868 to seek an additional extension through October 15. It’s crucial to keep in mind that this is a filing delay rather than a payment extension. To escape fines and interest, taxpayers who owe taxes must still pay them by the deadline of June 15.
The IRS is still offering assistance to taxpayers who were impacted by the California storm but have already submitted their tax returns. Taxpayers in affected areas who have already filed returns but are later found to be qualified for disaster relief will automatically receive filing and penalty relief, according to the IRS.
For taxpayers impacted by the California storm, the IRS has also offered other forms of relief in addition to the extension for submitting taxes. This includes expedited handling of requests for installment agreements and offers in compromise as well as the waiving of costs for some requests, like getting copies of tax returns or transcripts.
Asserting Catastrophic Loses
Taxpayers who were impacted by a disaster that the president proclaimed may claim a deduction for a disaster loss. When submitting a tax return for the tax inflation relief year 2022, either the original or amended version, the taxpayer may claim a disaster loss.
Taxpayers should identify the catastrophe by writing its name in blue or black ink at the top of their tax inflation relief to notify FTB. If filing electronically, taxpayers should input disaster details according to the software’s instructions. Call the number on the notice if a taxpayer gets a late filing or payment penalty notice pertaining to the postponement period if they want the penalty waived.
Overall, the IRS’s extension of the deadline for filing tax inflation relief provides much-needed relief to those Californians and companies impacted by the California storm. The IRS is assisting to lessen the burden on those who have already experienced so much hardship in the wake of the disaster by extending the deadline for taxpayers to submit their tax returns and pay any tax inflation relief that are owed.