California Taxpayer Payment Relief

January 17, 2023 | Alert

By Jenny McGarry

Revised January 17, 2023: California taxpayers affected by the January storms may qualify for relief from upcoming federal and California tax deadlines. Relief is provided for deadlines on or after January 8, 2023, and before May 15, 2023.

California announced state relief on January 13, 2023.

What returns and payments qualify for relief?

Individuals and households that reside or have a business in a designated Federal Emergency Management Agency (FEMA) area may qualify for relief from original tax deadlines.

The following federal tax filings and payments are now due on May 15, 2023, for those affected:

  • 2022 individual income tax returns
  • 2022 business returns normally due on March 15, 2023
  • 2022 business returns normally due on April 18, 2023
  • Individual Retirement Account (IRA) contributions
  • Health Savings Account (HSA) contributions
  • 2022 fourth quarter estimated payments normally due on January 17, 2023
  • 2023 first quarter estimated payments normally due on April 18, 2023
  • Qualifying farmers who file their returns by March 1
  • Quarterly payroll and excise tax returns normally due January 31, 2023, and April 30, 2023
  • Penalties will be abated on payroll and excise tax deposits due after January 7, 2023, and before January 23, 2023

The following state agencies have announced relief for those affected:

  • The California Franchise Tax Board announced tax relief for individuals and businesses with deadlines falling on or after January 8, 2023, and before May 15, 2023, including 2022 individual income tax returns due on April 18 and quarterly estimated tax payments, typically due on January 17, 2023, and April 18, 2023.
  • The California Department of Tax and Fee Administration (CDTFA) has announced emergency tax or fee relief for tax return due dates, relief of penalty and interest, or replacement copies of records lost due to disasters.
  • The Employment Development Department (EDD) announced that affected employers may request up to a two-month extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest.

Who qualifies for relief?

Individuals affected by severe winter storms that reside or have a business in designated areas qualify for tax relief, as of January 17, 2023. These designated counties include:

  • Alameda
  • Colusa
  • Contra Costa
  • El Dorado
  • Fresno
  • Glenn
  • Humboldt
  • Kings
  • Lake
  • Los Angeles
  • Madera
  • Marin
  • Mariposa
  • Mendocino
  • Merced
  • Mono
  • Monterey
  • Napa
  • Orange
  • Placer
  • Riverside
  • Sacramento
  • San Benito
  • San Bernardino
  • San Diego
  • San Francisco
  • San Joaquin
  • San Luis Obispo
  • San Mateo
  • Santa Barbara
  • Santa Clara
  • Santa Cruz
  • Solano
  • Sonoma
  • Stanislaus
  • Sutter
  • Tehama
  • Tulare
  • Ventura
  • Yolo
  • Yuba

Check IRS Tax Relief in Disaster Situations and the state agencies for the most current list of FEMA designated areas.

How do taxpayers apply for relief?

  • Taxpayers with an address of record located in the disaster areas will automatically receive federal and state income tax filing and penalty relief. Taxpayers qualifying for relief who reside or have a business located outside the disaster area must contact the IRS disaster hotline at 866-562-5227.
  • For employment taxes, a written request for extension must be filed and received by the EDD within two months from the original delinquent date of the payment or return.
  • The CDTFA requires taxpayers to submit a Relief Request either online or by completing and submitting Form CDTFA-735.

Stay up-to-date on the latest tax happenings.

This article is provided for general informational purposes only. It is not legal, accounting or other professional advice, as it does not address any individual facts, circumstances or concerns. Before making personal or business related decisions, please consult with appropriate legal, accounting or other qualified professionals.

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