A Nice Surprise for California Taxpayers and Practitioners on October 16th
Today, the Internal Revenue Service (IRS) further postponed tax deadlines for most California taxpayers (55 of California’s 58 counties, all except Lassen, Modoc and Shasta counties, qualify) from October 16, 2023 to November 16, 2023. While the State of California generally conforms to disaster relief extensions announced by the IRS, final confirmation from the Franchise Tax Board is still pending. It is important to note that the Financial Crimes Enforcement Network (FinCEN) has not issued guidance on whether it will postpone the Report of Foreign Bank and Financial Accounts (FBAR) filing deadline. Therefore, unless FinCEN separately issues guidance postponing the deadline, taxpayers should plan to file their FBARs on a timely basis.
Taxpayers entitled to relief include:
- Individuals who live in the covered disaster area.
- Businesses whose principal place of business is located in the covered disaster area.
- Taxpayers whose records are located in the covered disaster area (i.e. clients whose tax records are with a tax professional’s physical office location that is situated within a covered disaster area).
IRS tax return filing and payment deadlines have been extended to November 16, 2023 for the following:
- 2022 individual income tax returns and payments normally due on April 18, 2023.
- For eligible taxpayers, 2022 contributions to IRAs and health savings accounts.
- Quarterly estimated tax payments normally due on April 18th, June 15th and Sept. 15th.
- Calendar-year 2022 partnership and S-Corporation returns normally due on March 15, 2023.
- Calendar-year 2022 corporate and fiduciary income tax returns and payments normally due on April 18, 2023.
- Quarterly payroll and excise tax returns normally due on May 1st, July 31st and October 31st.
- Calendar-year 2022 returns filed by tax-exempt organizations normally due on May 15, 2023.
- “Other return, payment, and time-sensitive tax-related actions also qualify for the extra time.” * Unfortunately, the current guidance is not explicit, though historically, this typically includes time sensitive acts that are detailed in Revenue Procedure 2018-58. *
Source: IRS.gov
- Carey M. Heyman, CPA
- Managing Principal of Industry - Real Estate
- CliftonLarsonAllen LLP
- Century City (Los Angeles)
Carey is the Managing Principal of the Real Estate Industry at CLA. He is a trusted advisor with close to 20 years of experience providing accounting, assurance, tax, and consulting services to real estate industry owners, operators, family offices, developers and syndicators. Carey has a strong track record of helping clients build and retain capital by leveraging tax- and cost-saving strategies and employing tax credits and incentives. He also consults with high net worth individuals, large family groups, and owners of closely-held businesses on all aspects of tax planning, estate planning, and retirement planning.
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