On March 8, 2010, President Obama declared these counties as major disaster areas as a result of the severe storms, flooding, and mud flows that occurred from January 17 through February 6, 2010:

• Calaveras;
• Imperial;
• Los Angeles;
• Riverside;
• San Bernardino; and
• Siskiyou.

For state and federal purposes, taxpayers suffering losses in these counties may elect to take the loss in the 2009 tax year instead of the 2010 tax year. (IRC §165(i); R&TC §§17207, 24347.5) Taxpayers may make a different election for state and federal purposes.

Taxpayers making the throwback election should print “California Severe Storms 2010” in red at the top of the original or amended return. If e-filing, follow the software instructions.

Taxpayers must make the throwback election by filing an original (or amended return if an original has already been filed) by the later of:

• The due date (without extensions) of the return for the taxable year in which the disaster occurred (April 15, 2011, for calendar-year individual taxpayers, or March 15, 2011, for calendar-year corporations); or
• The due date (with extensions) of the return for the taxable year preceding the year in which the disaster occurred (October 15, 2010, for calendar-year taxpayers). (Treas. Regs. §1.165-11(e))

Future state legislation may allow for an extended California election period, as well as special disaster loss carryover provisions.

Note that California does not conform to any of the federal changes under the Emergency Economic Stabilization Act of 2008 for federally-declared disasters.

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