The Internal Revenue Service said today that wildfire victims in portions of California now have until January 3, 2022 to file different individual and corporate tax forms and make tax payments. These extensions were set to expire on November 15 under relief granted in August.
Based on the recent Federal Emergency Management Agency (FEMA) decision to conclude the incident period for this disaster declaration on October 25, the IRS is offering this extra relief. The IRS is required by law to give disaster aid for at least 60 days after the FEMA-designated incident period has ended.
As a result, the IRS is now giving any area of California designated by FEMA for either individual or public aid more time. Lassen, Nevada, Placer, Plumas, Tehama, and Trinity counties are currently included. The IRS relief will be automatically granted to any jurisdiction that has been added to the FEMA proclamation. The current list of qualifying localities may always be found on IRS.gov’s disaster assistance page.
Various tax filing and payment deadlines that were set to begin on July 14, 2021 have been postponed as a result of this relief. As a result, affected individuals and organizations will have until January 3, 2022 to submit forms and pay any taxes owed during this time period.
Individuals who have a valid extension to file their 2020 tax return that expired on October 15, 2021 will now have until January 3, 2022 to do so. However, because tax payments for these 2020 forms were due on May 17, 2021, they were not eligible for this exemption, according to the IRS.
The deadline for quarterly projected income tax payments due on September 15, 2021, as well as quarterly payroll and excise tax filings generally due on August 2 and November 1, 2021, has been extended to January 3, 2022. Businesses with an original or extended due date, such as calendar-year partnerships and S corporations whose 2020 extensions expired on December 31, have the extra time.
Any taxpayer with an IRS address of record in the disaster region receives automatic filing and penalty relief from the IRS. As a result, taxpayers are not required to contact the agency in order to receive this relief. If an affected taxpayer receives a late filing or late payment penalty notice from the IRS with a due date that falls within the postponement period, the taxpayer should call the number on the notice to have the penalty waived.