IRS and FTB will grant extensions to wildfire victims - Spidell

IRS and FTB will grant extensions to wildfire victims

Taxpayers who are victims of the wildfires in Lassen, Nevada, Placer, Plumas, Tehema, and Trinity counties have until November 15, 2021, to file various individual and business tax returns. The IRS has granted relief to taxpayers in these federal declared disaster areas, and California conforms to the extensions. (IRS CA-2021-03; R&TC §18572)

The extension applies to all deadlines falling on or after July 14, 2021, and before November 15, 2021, and includes, but is not limited to:

  • Individual 2020 tax returns on extension and business returns on extension with due dates during this time period;
  • Quarterly estimated tax payments normally due on September 15;
  • Quarterly payroll and excise tax returns normally due on August 2, 2021; and
  • All other time-sensitive actions described in Treas. Regs. 301.7408A-1(c)(1) and Rev. Proc. 2018-58.

In addition, all penalties on deposits due on or after July 14, 2021, and before July 29, 2021, will be abated as long as the tax deposits were made by July 29, 2021.

The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. Affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline to request this tax relief:

(866) 562-5227

If an affected taxpayer receives a late-filing or late-payment penalty notice related to the postponement period from the FTB, the taxpayer should call the number on the notice to have the penalty abated.