There is some positive news on the horizon for residents of California who owe state or federal taxes. According to a California Franchise Tax Board attorney, such individuals have until October to file their taxes and pay monies owed, if any.
Filing Delay Is Response to State of Emergency
The delayed deadline is essentially a government response to the floods and mudslides that occurred earlier this year, which resulted in a state of emergency between Dec. 27 and Jan. 31. The deadline was previously delayed until the 15th of May, but last week, Governor Gavin Newsom announced that it was again pushed forward. The new October deadline is an option for anyone whose filing address is located in a disaster area. There is no need to google tax attorneys near you or alert the agency that you will be filing late. Rather, the deadline is automatically moved for you if you live in one of the disaster areas.
Additional Time May Work in Favor of Many Filers
The new October delay applies to virtually all 2022-related actions that would have had to be addressed for the old deadline of April 17. This even includes making tax-favorable contributions to health savings accounts, IRAs, or similar accounts. The new deadline will provide California residents with additional time to use these deductions to their maximum advantage.
Tax Refund Considerations
Naturally, if an accountant or a tax lawyer in San Jose has indicated that you are owed a refund, filing the soonest possible is a good idea for obvious reasons. In this case, filers must simply consider which course of action is more advantageous, and the decision will likely hinge on the amount of the refund and how desperately the money is needed.
Delayed Deadline for Those Living Outside Designated Disaster Areas
If you reside outside the areas designated by the government as disaster zones, the Internal Revenue Service has indicated that you may still qualify for a delayed deadline, for such reasons as the following:
- If you need records that cannot be reached because they are stored in a disaster zone.
- If your accountant or tax preparer’s office is located in one of the disaster areas and the person is unable to complete the work in a timely manner.
- If you’re assisting a recognized charity or the government with disaster-area relief efforts.
However, if anything on the aforementioned list applies to your situation, you must contact the IRS and ask for a deadline delay based on those circumstances. Alternatively, you will risk the same interest and penalties that would otherwise be applied for filing late.
What to Do with a Late Filing Notice
Individuals who take advantage of the delayed filing deadline could possibly receive late filing notices due to backlog at the IRS. If this occurs, it’s important to contact them to let them know that you qualify for the delay and ask that penalties be waived. This is accomplished by calling the phone number on the notice.
Excise and Payroll Taxes
It’s important to understand that no extension is available for excise or payroll taxes. Delay deadlines associated with natural disasters do not usually cover tax payments of these types. Therefore, if you need to delay your filing date for such taxes, an accountant or IRS attorney should be consulted.