In early January, the IRS announced that it was postponing various tax filing and payment deadlines for storm victims in the Golden State. As a result, says the Agency, 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 relief is available to any area designated by the Federal Emergency Management Agency.
According to the IRS, this relief 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. It even allows eligible taxpayers to wait until May 15 to make 2022 contributions to their IRAs and health savings accounts.
In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due. The May 15, 2023, deadline also applies to the quarterly estimated tax payments, normally due on January 17, 2023, and April 18, 2023. Fourth-quarter estimated tax payments, normally due January 17, 2023, can now be included with the 2022 return, on or before May 15.
The May 15 deadline also applies to the quarterly payroll and excise tax returns normally due on January 31 and April 30, 2023, according to the IRS. In addition, penalties on payroll and excise tax deposits due on or after January 8, 2023, and before January 23, 2023, will be abated as long as the tax deposits are made by January 23, 2023.
No special procedures
To make it easier, the IRS says it is automatically providing filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the Agency to get this relief. However, advises the IRS, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
The full details, and links to more information (such as coverage area), are available on an IRS page devoted to special provisions. If you have questions about this, contact a Schaumburg, IL money management professional at Bott & Associates, Ltd. for help.