California Storm Victims May Qualify For Tax Relief
Recently, storms have lashed many of the coastal cities in California, which experienced widespread flooding, sinkholes, and the loss of power across the state. The rain has raised water levels across California, where between December 26th and January 9th parts of the state saw more than six times the amount of rain as is usual for this time of year. These conditions have put many people in danger of losing their homes and thousands have been evacuated. In recognition of their struggles, the IRS has extended relief to many of the taxpayers who live in affected areas in California.
Tax Filing Deadline Extended to May 15th
Many California storm victims now have until May 15th to file their individual and business tax returns and to make tax payments. The tax relief package also postpones other tax filing and payment deadlines occurring after January 8th of this year. This includes 2022 income tax returns due in April, as well as business returns that would normally be due on March 15th. It also applies to the quarterly estimated tax payments that are typically due on January 17th and April 18th, which means that taxpayers can skip the January payment and include it with their 2022 return when they file in May. In addition to these filing extensions, taxpayers will also now have until the May deadline to make 2022 contributions to their health savings accounts and IRAs. The new May 15th deadline also applies to quarterly payroll and excise tax returns that are normally due on January 31st and April 30th. Finally, penalties on payroll and excise tax deposits due on or after January 8th and before the 23rd will be abated, but only if the deposits are made by the 23rd of January.
Who Qualifies for California Storm-Related Tax Relief?
This relief is being offered to anyone who lives or works in California in an area designated by the Federal Emergency Management Agency (FEMA) to be a disaster area, including, but not limited to the following counties:
- Los Angeles;
- San Diego;
- San Francisco;
- San Luis Obispo;
- Santa Barbara;
- Sonoma; and
To determine whether you live or work in a locality that is eligible for storm-related tax relief, check the IRS’ Tax Relief in Disaster Situations page, which is updated regularly. Filing and penalty relief is automatically offered to taxpayers who have addresses of record in a disaster area, so most taxpayers won’t need to contact the agency to obtain relief. If, however, someone lives outside of a designated disaster area, but has records in the affected area, then he or she should contact the IRS for help. This includes workers who are helping with relief activities and who are affiliated with a charitable or government organization.
Call Today for Tax Advice
To speak with an experienced CPA, former FBI Special Agent, and dedicated nationwide tax attorney about tax relief for which you might qualify as a California resident, call Ronald Cutler, P.A. at 386-490-9949 today.