IRS Extends Tax Filing and Tax Payment Deadlines

The IRS recently announced tax filing and tax payment deadline extensions for all San Diego county taxpayers.. To assist residents adversely affected by the recent winter storms, Federal filing deadlines have been extended to June 17, 2024.   The Franchise Tax Board followed suit and also issued a June 17, 2024 extension  for California Personal Income tax and business tax returns.  More details on the IRS Extends Tax Filing and Tax Payment Deadlines for San Diego County Taxpayers.

The IRS deadline extension applies to tax payments and tax filing deadlines that occur between January 21, 2024, and June 17, 2024. The deadline extension applies to several different tax payments and tax returns including: 2023 individual income tax returns, 2023 individual income tax payments, 2024 Q1 estimated tax payments, corporate tax returns and payments, calendar year S Corporation returns, fiduciary returns, and payroll tax returns. The IRS is also granting an extension to make 2023 IRA contributions.

It should be noted that the relief the IRS is granting for payroll tax deposits is limited. The IRS is only excusing late payroll tax deposits for payroll tax deposits due between January 21, 2024, and February 5, 2024. The payroll tax deposit relief only applies if the taxpayer pays the payroll tax deposit by February 5, 2024.

It should be noted that other California state taxing authorities are not offering the same filing extensions to San Diego taxpayers. The EDD has not yet announced any type of relief program for California Payroll taxes. The CDTFA Relief Program offers and payment extensions only to those Taxpayers who were directly affected by the flooding or rains.  Taxpayers wishing to take advantage of the CDTFA relief program must apply for relief with the CDTFA.

The deadline extension may not be the only relief available to San Diego taxpayers and businesses directly affected by recent storms and flooding. For example, casualty loss deductions may be available to some taxpayers that suffered property damage due to flooding or storms. Payments taxpayers receive from government agencies for disaster relief may not be taxable. Also, some taxpayers can take an early withdrawal from an IRA account and avoid the 10% early withdrawal penalty and spread the income taxable income realized over three years.

We always encourage our clients to do whatever they can to timely meet their tax obligations. Unfortunately, not everyone is in a position to always timely meet their tax obligations. Floods and storms are a few examples of the type of events that can severely impact a person’s life and prevent them from timely meeting their tax obligations. Fortunately for San Diego County taxpayers, the IRS and FTB have acknowledged that at least some taxpayers in our county need some help getting back on their feet. However, not every taxpayer that experiences a flood or some other catastrophic event automatically gets the type of relief the IRS recently announced. Taxpayers who experience some catastrophic event like a flood may be entitled to some relief, but they may have to fight for it.

RJS LAW is a stalwart of the San Diego Legal Community that has helped countless clients with a wide variety of tax problems. If you have storm-related tax problems (or any tax problem for that matter), reach out to us for a free consultation. We can be reached on the web at RJS LAW or by calling 619-595-1655.

Written by Joseph Cole, Esq., LL.M.