IRS issues federal tax deadline relief for California severe winter storms, flooding and mudslides disaster area

The IRS announced disaster relief that extends federal tax deadlines for taxpayers in certain California counties to May 15, 2023. This relief is in response to the severe winter storms, flooding and mudslides experienced in the affected counties and Federal Emergency Management Agency’s (FEMA’s) resulting disaster area declaration.

Who is eligible for the federal tax deadline relief

The covered disaster area includes the following counties:

Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo and Yuba counties.

The federal tax relief applies to:

• Individuals who live in the covered disaster area
• Businesses (including tax-exempt organizations) whose principal place of business is located in the covered disaster area
• Certain relief workers in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster
• Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline are in the covered disaster area

Relief provided

Affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due. That also applies to taxpayers not in the covered disaster area, but whose records necessary to meet a deadline are in the covered disaster area. The May 15, 2023, deadline also applies to the quarterly estimated tax payments normally due Jan. 17, 2023, and April 18, 2023, as well as quarterly payroll and excise tax returns normally due Jan. 31, 2023.

In addition, penalties on payroll and excise tax deposits due on or after Jan. 8, 2023, and before Jan. 23, 2023, will be abated as long as the tax deposits are made by Jan. 23, 2023.