On Tuesday, January 10, the Internal Revenue Service (IRS) announced an income tax filing extension meant to provide relief for Californians impacted by recent historic storms. Currently, 41 out of 58 of the state’s counties are under a federal emergency declaration. The extension allows taxpayers living in any affected counties until May 15th to file their 2022 tax returns and pay any associated income taxes without penalty. Any counties subsequently declared a federal emergency area would also be included in the extension. Relief may also be available to those who, while not residing in an affected county, can show that records needed for filing are stored in an eligible county. On January 13, the California FTB conformed to this announcement so that California tax returns and payments are also deferred until May 15.
The extension will be applied automatically to any filers residing at an address within the disaster area. The announcement applies to both individual returns and various business filings, as well as other tax-related deadlines. The change will give individuals more time to contribute to health savings accounts or IRAs and postpones any payment deadlines, such as quarterly estimated tax payments or penalties on payroll and excise tax, owed by businesses.
To read the full IRS announcement, click here.
Please contact with your Bowman & Company financial advisor with any questions or concerns regarding this extension. We are always happy to help!