Wildfire, flood, and mudslide victims receive more time to file and pay February 2018 Tax News

We automatically follow federal postponement periods for any presidentially-declared disasters

The affected taxpayers impacted by Southern California wildfires, floods, and mudslides that began in December 2017 are granted an extension to file 2017 California tax returns and make payments until April 30, 2018

The IRS granted relief to individuals and businesses in four counties: Los Angeles, San Diego, Santa Barbara, and Ventura. This applies to various tax filing and payment deadlines that occurred starting on December 4, 2017, including:

  • Individual income tax returns normally due on April 17, 2018.
  • Quarterly estimated tax payments due January 16, 2018.

We will also follow these extended dates and will cancel interest and any late filing or late payment penalties that would otherwise apply.

Disaster loss rules apply to victims in Governor-declared or presidentially-declared disaster areas. Your clients may claim a disaster loss in one of two ways: In the tax year that the disaster occurred, when filing a 2017 tax return this spring; or in the tax year before the disaster occurred by filing either an amended or original 2016 tax return. We can more quickly issue a refund for eligible claimed losses in the prior tax year.

For a complete list of all disasters declared by the Governor, see the “Qualified Disasters” chart on our Disaster Loss webpage. Additional information and instructions are available in FTB Pub. 1034, Disaster Loss - How to Claim a State Tax Deduction.

For your clients claiming the disaster loss, you should write the name of the disaster in red ink at the top of the tax return to alert us to expedite the refund. If you are e-filing, follow the software instructions to enter disaster information.

Additional business tax relief for wildfire victims is available through the California Department of Tax and Fee Administration.