The California and IRS extended income tax deadlines are rapidly approaching as we near the deadline in mid-October. In the first few months of 2023 California and the IRS extended income tax deadlines and associated payments until October 16, 2023. This extension applied to all businesses and individual taxpayers (married filing jointly, married filing separately and single) in the State of California. California and the IRS also provided the opportunity for entities and taxpayers who suffered losses due to damages in earlier winter storms to claim associated deductions on their income taxes.
The storm damage deductions applied to documental damages and losses associated with severe winter storms “including, but not limited to wind damage, mudslides, landslides and/or flooding. The tax relief was available for those affected in the following California counties:
Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Inyo, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Nevada, 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, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, Yolo, and Yuba
October 16, 2023 is Going to Be a Busy Tax Day in California
October 16, 2023 is going to be a busy tax day for businesses and individuals throughout California. Income tax returns will be required for the vast majority of business and individual tax filers on October 16 (as the traditional deadline of October 15th falls on a Sunday this year). This includes:
Businesses who would have normally filed a tax return on March 15 or April 18, 2023
Individual tax returns and payments which would have ordinarily been due April 18, 2023
The California and IRS extended income tax deadlines applied not only to the filing of 2022 business and personal tax returns, but to the payment of associated taxes and deposit of estimated taxes in 2023. Therefore, any quarterly estimated tax payments which have been deferred by businesses and individuals throughout 2023 must be deposited by October 16, 2023. This includes:
Pass-Through Entity or PTE Elective Taxes which would have been due on June 15, 2023
Quarterly estimated tax payments which would have been due January 17, April 18, and June 15 in 2023 as well as the normal upcoming estimated tax deadline of September 15.
If You’ve Waited This Long You May be Facing an Uphill Challenge with Your Tax Preparer
The California and IRS extended income tax deadlines have had another perhaps unexpected impact on business and individual taxpayers: tax preparers are overwhelmed as those who have taken advantage of the extended deadlines have put off providing paperwork and supporting documentation. The normal “tax day” rush felt by most tax preparers in March and Early April has been exponentially compounded as we approach the extended deadline of October 16, 2023.
The integrated legal, estate planning, accounting and tax professionals at Allen Barron and Janathan L. Allen, APC encourage all taxpayers to consider the remaining timeframe (just barely one month before October 16) and to begin depositing deferred taxes and estimated payments while ensuring they are prepared to timely file business and personal California and IRS tax returns along with any taxes which may be due.