The Internal Revenue Service on Tuesday offered a sort of lifeboat to California residents and businesses wading through the atmospheric river: More time to pay their income taxes.
The agency announced that taxpayers in any county covered by a federal emergency declaration would have until May 15 to file their 2022 tax returns. So far, 31 of the state’s 58 counties are part of this group, including Los Angeles, Orange, San Diego. and the counties of Ventura; if the reporting is extended to multiple counties, the IRS will also grant them the additional time.
Relief will be offered automatically to anyone whose IRS registered address is in a disaster area – no need to call for help or alert the agency that you will be filing late. If the IRS still sends you a penalty notice because you missed a deadline that should have been waived, the agency advises you to call the number on the notice to have the penalty cleared.
The deferral to mid-May applies to anything that would normally face deadlines from April 15 or earlier in 2023, including tax-advantaged contributions to an IRA or health savings account.
Even better for businesses and other filers paying estimated or provisional taxes, payments due in January, March and April have also been postponed. You can do them when you file your annual return by May 15.
The same goes for quarterly payroll and excise tax returns, which would normally be due on January 31 and April 30. said.
Certainly, if you are entitled to a refund, you still want to deposit as soon as you can. Otherwise, you give Uncle Sam an interest-free loan.
If you live outside the designated disaster area, you can still benefit from the deferred deadlines if you meet one of the following three conditions: the documents you need to complete your declaration are inside the area (for example example, if you are a shareholder of an S corporation inside the affected area); your tax preparer is inside the disaster area and is unable to complete the job in time; or you are helping the government or a recognized charity with relief efforts in the area. But you will need to notify the IRS by calling (866) 562-5227.
Another point: If you have disaster-related losses that aren’t reimbursed or insured, you can deduct them on your tax return for 2022 or 2023, the IRS says. “Be sure to write the FEMA declaration number – 3691-EM – on any return showing loss,” the agency advised. IRS Publication 547 can guide you through the requirements.
For more information, see the Disaster Assistance and Emergency Relief for Individuals and Businesses page on the IRS website.
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