2022 tax deadlines extended to Nov. 16

By JP Crumrine
Correspondent

For those of you who were really swamped from the winter weather emergencies or preparing your state and federal taxes last week thinking the deadline was Oct. 16, it is now Thursday, Nov. 16.

Yes, at the last minute, both the Internal Revenue Service (IRS) and the state Franchise Tax Board (FTB) delayed the 2022 tax payments for residents of counties, including Riverside, affected by the winter weather where the Federal Emergency Management Agency (FEMA) had declared a presidential emergency.

Following the disaster declaration FEMA issued, individuals and households affected by severe winter storms, flooding and mudslides who reside or have a business in [the affected counties] qualify for tax relief.

“In the wake of last winter’s natural disasters, the normal spring due dates had previously been postponed to Oct. 16. As a result, most individuals and businesses in California will now have until Nov. 16 to file their 2022 returns and pay any tax due,” the IRS wrote in its news release.

Later in the day, the FTB confirmed that it had also deferred state tax payments for residents of 55 counties, including Riverside, until Nov. 16.

Federal taxes
All individual tax returns, which would have been due April 18, 2023, are now deferred until Nov. 16. This includes 2022 contributions to IRAs and health savings accounts. This also includes quarterly estimated tax payments normally due April 18, June 15 and Sept. 15.

Other calendar-year 2022 tax year returns that are deferred include partnership and S corporation returns normally due March 15, corporate and fiduciary income tax returns and payments normally due April 18, and returns filed by tax-exempt organizations normally due May 15.

Quarterly payroll and excise tax returns normally due May 1, July 31 and Oct. 31. are also all deferred until Nov. 16.

The IRS stressed that if the filer has a tax record address within the disaster areas the taxpayer does not have to do anything but file by Nov. 16. If they moved into the area since their latest filing, they may get a notice but “The taxpayer should call the number on the notice to have the penalty abated.”

The IRS did offer two suggestions for taxpayers. First, disaster losses can be claimed on individual or business tax returns. Normally, the claim is part of the return for the year it occurred. In this situation it would be the 2023 tax returns; however, the IRS said they can be claimed in the return for the prior year — 2022.

Also, taxpayers who participate in a retirement plan or IRA may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years.

Taxpayers may also be eligible to make a hardship withdrawal.

FTB
The state also stated that claiming the disaster loss could be done in either one of two returns — the year the disaster loss occurred (2023) or the prior year (2022).

FTB noted, “The advantage of claiming the disaster loss on a tax year 2022 return is that FTB can issue a refund sooner.”

FTB did ask taxpayers to write the name of the disaster in blue or black ink at the top of the return. Riverside County was included in the Jan. 10, 2023, Presidential Declaration. For those filing electronically, the software has directions for how to identify the disaster.

California taxpayers can contact the FTB at one of the field offices or call 1-800-400-7115, Monday through Friday from 7:30 a.m. to 5 p.m. (Pacific Time), except state holidays. There are field offices in San Diego and Los Angeles.