The IRS offers tax relief to individuals and businesses affected by natural disasters, such as severe winter storms, flooding, landslides, and mudslides in California.
This program can provide much-needed assistance to disaster victims as they rebuild and recover from the aftermath of the disaster.
In this article, we’ll take a closer look at the IRS tax relief 2022 options available to California disaster victims and how they can maximize the benefits.
IRS Tax Relief 2022 Explained: Who Are Eligible?
Investopedia said the IRS tax relief is a set of measures taken by the federal government to provide financial assistance to individuals and businesses affected by natural disasters.
This assistance can include extensions on filing and paying taxes, as well as tax-free access to retirement funds.
Individuals and businesses located in a disaster area declared by the government are eligible for IRS tax relief.
In fact, IRS said on another website that individuals and households affected by severe winter storms, flooding, landslides, and mudslides that reside or have a business in Alameda, Yolo, Butte, Ventura, Calaveras, Tulare, Colusa, Trinity, Contra Costa, Sonoma, Fresno, Siskiyou, Glenn, Santa Cruz, Humboldt, Santa Clara, Los Angeles, Santa Barbara, Marin, San Mateo, Mendocino, San Luis Obispo, Merced, San Joaquin, Monterey, San Benito, Placer, and Sacramento counties qualify for tax relief.
What This Tax Relief Means
This IRS tax relief 2022 program intends to extend certain deadlines for tax returns and payments for taxpayers who live in or operate businesses in the disaster region. For example, extensions are given until May 15, 2023, for certain deadlines that happen on or after December 27, 2022, and before that date.
Therefore, impacted persons and entities shall have until May 15, 2023, to submit returns and pay any taxes initially due during such time. This covers April 18 individual income tax returns for 2022 as well as a number of corporate returns for 2022 that are typically due on March 15 and April 18, 2023. This includes, among other things, giving qualified taxpayers until May 15 to make contributions to their IRAs and health savings accounts for 2022.
Farmers who ordinarily submit their returns by March 1, 2023, but opt to avoid projected tax payments, will now have until May 15, 2023, to file their 2022 forms and pay any tax owed.
Those who are situated in the designated disaster region are immediately identified by the IRS and given filing and payment assistance. However, to receive this tax relief, those taxpayers who live or operate a company outside the designated disaster region can contact the IRS disaster hotline at 866-562-5227.
How to Maximize Benefits
To maximize the benefits of this program, disaster victims should keep accurate records of their expenses and losses related to the disaster. Turbotax said these include receipts, canceled checks, and other documentation of expenses and losses.
Individuals and businesses should also contact the IRS as soon as possible to request tax relief and discuss any specific questions or concerns.
The IRS tax relief options available to California disaster victims can provide much-needed assistance as they rebuild and recover from the aftermath of the recent wildfires. By understanding the eligibility criteria and maximizing the benefits of these options, individuals and businesses can get the support they need during this difficult time.