Current Advocacy Issues
What's going on in Advocacy?
Disaster relief is creating confusion with the numerous releases from IRS and FTB. Here is a quick reference for all we know. DISASTER RELIEF Updated 3/8/2023 (now includes Kern, Lassen and Plumas counties under IRS CA-2023-01).
Disaster Tax Relief for Modoc County
Modoc County joins the list of federally declared disaster areas, following the recent FEMA disaster declaration. Individuals who reside or have a business in Modoc County and were affected by the severe winter storms that began on February 21 now have until August 15, 2023 to file and pay taxes. This county had not been included in any prior FEMA disaster declarations.
The relief includes 2022 individual income tax returns, various business returns due on March 15 and April 18, and any payment normally due during this period. It also includes the quarterly estimated tax payments normally due on April 18 and June 15, and the quarterly payroll and excise tax returns normally due on May 1 and July 31. Get additional details from IRS news release CA-2023-04.
While FTB generally conforms to the IRS, it has not yet released an announcement on this matter.
DISASTER TAX RELIEF
Update 3/23/23: Only 3 counties in CA do NOT qualify for the extension to file/pay: Lassen, Modoc, and Shasta.
It's easy to be confused about deadlines, extensions, affected taxpayers, counties with federal and state tax agencies having some variations on the relief available. CSEA has put together this guide to give you a resource in one place. Just click on Disaster Relief below.
DISASTER RELIEF NOTE: Updated 3/8/2023 (includes Kern, Lassen, and Plumas counties in IRS list under CA-2023-01).
Per IRS no interest will accrue on payments made by the extension deadline of October 16, 2023. Read more here: IRS Interest and Pension Information Thank you to Jane Ryder, EA, CPA for this great information.
Affected or Not?
Still confused about disaster tax relief, extensions, payments? Who is affected? The extension to October 16, 2023 for filing and making payments applies to individuals and businesses in the counties identified by the FTB on its website at: Emergency tax relief. If a taxpayer lives or has a business in one of the 51 counties identified, they are eligible for the extension to file and pay. These folks are generally referred to as “affected taxpayers.”
Taxpayers who were directly impacted by the storms, and had damage as a result, are also considered affected, however the difference is these affected taxpayers may be able to claim disaster losses. The FTB website has a list of disasters with disaster codes to use when claiming a disaster loss. The FTB TPA expects that table to be updated to include Tuolumne County with a disaster code of 141.
As always, check the FTB website for updates on this information.