The IRS has extended the deadline for Californians to file federal individual and business tax returns as well as tax payments for tax year 2022 as a result of the recent storms impacting the state. The deadline has been moved from April 18, 2023 until May 15, 2023.
Eligible counties that qualify for this tax relief are listed on the IRS website. All of the counties in the Greater Los Angeles area qualify for the deadline extension: Los Angeles County, Orange County, Riverside County, San Bernardino County and Ventura County.
Taxpayers will have until May 15, 2023 to make contributions to IRA and Health Savings Accounts (HSA) due to the date change. Estimated quarterly tax payments for self-employment will have new dates as well as quarterly payroll and excise tax returns and tax deposits for businesses.
Taxpayers may receive late file or late payment penalty notices from the IRS due to the new deadline. This is erroneous and can be disputed by requesting a penalty abatement.
For taxpayers that have a balance due on their 2022 tax return and do not feel that they can afford to pay, they should file the tax return by the deadline. Failure to file penalties are ten times the failure to pay penalties. Some available options to deal with delinquent taxes includes the following:
For those facing a financial hardship, Currently Not Collectible (CNC) https://www.hrichtax.com/currently-not-collectible
Installment Agreement (aka, Payment Plan) https://www.hrichtax.com/installment-agreement
Offer in Compromise, settling taxes for less than the full tax liability owed https://www.hrichtax.com/offer-in-compromise
Discharging Taxes in Bankruptcy https://www.hrichtax.com/discharging-taxes-in-bankruptcy