Extensions for IRS & FTB Returns
President Biden and Governor Newsom declared a state of emergency throughout a majority of California in response to the recent winter storms. These declarations mean that certain residents and businesses in California who have been affected by severe winter storms, flooding, and mudslides are eligible for tax relief.
Both the Internal Revenue Service and the Franchise Tax Board announced that California victims of severe winter storms, flooding, landslides, and mudslides now have until May 15, 2023, to file various individual and business tax returns and make tax payments. Among other things, this means that eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and health savings accounts.
The IRS and the FTB are offering relief to victims of severe winter storms, flooding, and mudslides in California in any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business in the Southern California counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura counties qualify for tax relief. Special tax law provisions may help affected taxpayers and businesses recover financially from the impact of a disaster.
The tax relief postpones various tax filing and payment deadlines that occurred starting on January 8, 2023. As a result, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due during this period. This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18.
Taxpayers affected by a presidentially declared disaster may claim a deduction for disaster losses. Taxpayers may claim a disaster loss when filing either an original or amended tax year 2022 tax return.