STATEWIDE – The Internal Revenue Service (IRS) mailed notices to some California residents that live in a declared emergency disaster area, stating payments are due by June 26, 2023. The agency updated their website with a statement that the October 16, 2023 deadline still stands for disaster relief.
Payment Due Notice
The IRS mailed some California residents a CP-14 notice, dated June 5, that states payments are due in 21 days. No additional information about the disaster area relief extension was provided in the notice.
“If we don’t receive a full payment of the amount owed by this date, additional penalties may apply to your account. Penalties can be as high as 50% or more of the tax you owe,” says the IRS notice.
An updated statement on the IRS website clarifies the discrepancy.
“The IRS reassures California taxpayers that they continue to have an automatic extension until later this year to file and pay their taxes for those covered by disaster declarations in the state. The current mailings being received by some taxpayers, the IRS Notice CP-14, are for taxpayers who have a balance due, and they are sent out as a legal requirement. While the notice received by taxpayers says they need to pay in 21 days, most California taxpayers have until later this year to pay under the disaster declaration,” says the IRS statement.
Emergency Disaster Declaration
In March, the Federal Emergency Management Agency (FEMA) declared 51 counties in California a disaster area due to the winter storms.
An IRS noticed that extended the filing and payment to October 16 included 2022 individual income tax returns normally due on April 18. It also included various 2022 business returns normally due on March 15 and April 18.
No Action Required
The IRS previously stated that they automatically provide filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers would not need to contact the agency to get this relief.
“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,” states the IRS new release.
California also extended the state tax filing and payment deadline to October 16, 2023. No application is required for an extension. Taxpayers are eligible to claim a deduction for a disaster loss on their tax return
For the latest updates on IRS Tax Relief visit https://www.irs.gov/newsroom/irs-california-storm-victims-qualify-for-tax-relief-april-18-deadline-other-dates-extended-to-may-15
For information on the California Emergency Tax Relief visit https://www.ftb.ca.gov/file/when-to-file/Emergency-tax-relief.html