Attention Californians: You Might Qualify for Tax Extension

3 minute read 

Traditionally, the month of April causes much angst and nervousness, since tax returns and payments are normally due on April 15, Tax Day. Nevertheless, due to the severe winter storms and snowfall in California last year and early this year, the IRS and the California Franchise Tax Board (FTB) have extended the deadline for tax filings and payments for the 2022 tax year for Californians who are residents or have businesses located in areas identified as a disaster area by FEMA.

Initially, the deadline for filing and paying federal taxes was first moved from April 18, 2023 (since April 15 is on a Saturday this year) to May 15, 2023 per IRS Notice 2023-03, and was moved back again to October 16, 2023 (October 15 falls on a Sunday) per IRS Notice 2023-33. The California Franchise Tax Board (FTB) then followed suit by conforming to the Federal decision, moving CA state return filing and payments to Oct 15 which was announced per a press release from the office of California Governor Gavin Newsom.

Additional things to know regarding the filing and payment extension

Unlike the traditional automatic extension allowed for all taxpayers to file a tax return after Tax Day—in which any taxes owed are still due on Tax Day—this extension for California residents applies to both tax return filings and tax payments, delaying the deadline for both to Oct 16 for eligible taxpayers.

Taxpayers do not have to be directly affected by the storms, and the extension is automatic for Taxpayers (individual and businesses) located in a designated disaster area.

The extension applies to deadlines falling on or after January 8, 2023 and before October 16, 2023, and includes relief for the following:

• Individuals whose tax returns and payments are due on April 18, 2023.
• Quarterly estimated tax payments due January 17, 2023, April 18, 2023, June 15, 2023, and September 15, 2023.
• Business entities whose tax returns are normally due on March 15 and April 18.
• Pass-through entity (PTE) elective tax payments due on March 15, 2023 and June 15, 2023.
• Estate and trust income tax returns due on April 18, 2023.
• For certain IRC 1031 tax free exchanges, if the last day of the 45-day identification period or the last day of the 180-day exchange period falls on or after December 27, 2022, the deadline for an affected taxpayer is postponed by 120 days or to October 16, 2023, whichever is later. (Help With Disaster Relief | FTB.ca.gov, Q&A 9)
• Extension is automatic for qualifying taxpayers who live or do business in a county eligible for relief; the postponement of time to file and pay taxes does not apply to residents and businesses located in the following 3 counties: Lassen, Modoc, and Shasta. (Help With Disaster Relief | FTB.ca.gov, Q&A 1)
• If Taxpayer is not in a covered disaster area but their tax records needed to meet a filing or payment deadline are with a tax practitioner in a covered disaster area, the taxpayer will still qualify for the disaster relief. It is recommended taxpayers and tax practitioners retain records to substantiate they qualify for disaster relief (e.g., utility bills, bank statements, etc.). (Help With Disaster Relief | FTB.ca.gov, Q&A 4)