IRS provides tax relief for GA, CA and AL storm victims; filing and payment dates extended

The IRS has further extended federal income tax return deadlines to October 16th for taxpayers in California, Alabama, and Georgia affected by the recent disasters. 

Disaster-area taxpayers in parts of California, Alabama, and Georgia now have until October 16, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced on February 24, 2023. Previously, the deadline had been postponed to May 15 for these areas.  

The current list of eligible localities and other details for each disaster are available on the disaster relief page on IRS.gov. 

The additional relief postpones various tax filing and payment deadlines until October 16, including those for most calendar-year 2022 individual and business returns. This includes:

• Individual income tax returns originally due on April 18 
• Various business returns normally due on March 15 and April 18 
• Returns of tax-exempt organizations normally due on May 15   

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until October 16, 2023, to file their 2022 return and pay any tax due. 

The October 16 deadline also applies to the estimated tax payment for the fourth quarter of 2022, originally due on Jan. 17, 2023. This means that taxpayers can skip making this payment and instead include it with the 2022 return they file on or before October 16. 

The October 16 deadline also applies to 2023 estimated tax payments, normally due on April 18, June 15 and September 15. It also applies to the quarterly payroll and excise tax returns normally due on January 31, April 30 and July 31. 

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time. Taxpayers in the affected areas do not need to file any extension paperwork, and they do not need to call the IRS to qualify for the extended time. 

See the updated notice for more information.

Original article

In publication 547, the IRS announced that storm victims in parts of Georgia and Alabama now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments. This applies to tax filing and payment deadlines that begin on January 12, 2023. 

This extended deadline includes a number of 2022 returns and payments:

• Individual income tax returns normally due on April 18. 
• Business returns of various types normally due on March 15 and April 18, 2023. 
• Farmer's income tax returns normally due by March 01 if they choose to forgo making estimated tax payments (more details below). 
• Estimated tax payments normally due on January 17 and April 18, 2023 (more details below). 
• Quarterly payroll and excise tax returns normally due on January 31 and April 30, 2023 (more details below).    

Among other things, this means eligible taxpayers will have until May 15, 2023, to make 2022 contributions to their IRAs and health savings accounts.

Farmers  

Farmers (and presumably fishermen) in the affected parts of Alabama and Georgia who normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due.  

Estimated tax payments 

The extended deadline also applies to the quarterly estimated tax payments, normally due on January 17, 2023, and April 18, 2023. This means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due January 17, 2023, and instead include it with the 2022 return they file on or before May 15. 

Payroll and excise taxes

The May 15 deadline also applies to the quarterly payroll and excise tax returns normally due on January 31 and April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after January 12, 2023, and before January 27, 2023, will be abated. as long as the tax deposits are made by January 27, 2023. 

Counties in Georgia and Alabama affected by the IRS pronouncement  

Individuals and businesses in Butts, Henry, Jasper, Meriwether, Newton, Spalding, and Troup counties in Georgia and Autauga and Dallas counties in Alabama qualify for this relief. The current list of eligible localities is available on the disaster relief page on IRS.gov. 

Tax relief is automatic 

The IRS automatically provides 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, an affected taxpayer may receive 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. If so, the taxpayer should call the number on the notice to have the penalty abated. 

What affected taxpayers who live outside the designated areas should do 

In addition, the IRS will work with any taxpayer who lives outside the disaster area but has records necessary to meet a deadline during the postponement period located in the affected area.  

Taxpayers qualifying for relief living outside the disaster area must contact the IRS at 866-562-5227. This also includes workers assisting the relief activities affiliated with a recognized government or philanthropic organization. 

When taxpayers can claim their losses

Individuals and businesses in federally declared disaster areas who suffered uninsured or unreimbursed disaster-related losses can claim losses on either 

1. the return for the year the loss occurred (in this instance, the 2023 return normally filed next year), or 
2. the return for the prior year (2022, normally filed this tax season).  

The IRS reminds tax pros and taxpayers to write the FEMA declaration number – 4684-DR for Alabama or 4685-DR for Georgia--on any return claiming a loss.  

The IRS disaster relief page has details on other returns, payments, and tax-related actions qualifying for the additional time. 

See Publication 547 for additional details.