The IRS announced that they are sending a special follow-up mailing over the next few weeks to taxpayers in several states affected by disasters to reassure them that they still have additional time to pay their taxes. (IR-2023-121)
This new mailing is going to taxpayers in California and seven other states in designated disaster areas who received a CP14 notice from the IRS in late May and June. The notice will state:
“Since your address of record is located in a federally declared disaster area, the IRS has automatically granted you disaster relief. This gives you an extension of time to file your tax returns as well as make your tax payment listed on the CP14 Notices. You do not need to contact us to get this extra time to pay.”
However, it’s important to note that the original disaster announcements issued by the IRS still state:
“If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.”
If a taxpayer simply receives a balance due notice such as a CP14 without any imposition of penalties or interest, it is clear that the taxpayer does not have to respond. However, we at Spidell believe it is still safest to respond to any notice that assesses any penalties or interest, even if it relates to a return filing or tax payment that is due within the disaster postponement period.
In similar news, the FTB announced today that they are taking proactive steps to avoid the confusion we have seen with the IRS notices. The FTB will not be sending Form FTB 4963, Statement of Tax Due, for 2022 returns until after October 16, when the tax is due and payable in accordance with the disaster extension due dates.
For taxpayers who have filed 2022 California returns, the FTB may send Form FTB 5818B, Notice of Tax Return Change — Revised Balance, which is the notice that is sent when the FTB corrects one or more items on a tax return. The notices will give these taxpayers the option to pay any balance due now or pay by their respective county’s established disaster extension due date, which in most cases is October 16 this year.
The latest IRS announcement is available at:
The new FTB news release is available at:
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