Help with California winter storms2022-2023

A1: No, if your principal residence or place of business is not in one of the counties identified as a disaster area, you are not eligible for tax relief. The following 7 counties are not designated disaster areas: Imperial, Kern, Lassen, Modoc, Plumas, Shasta, and Sierra.

A2: If your principal residence or place of business is in one of the counties identified as a disaster area, income tax filing and payment deadlines that fall between December 27, 2022, and October 16, 2023, are due on October 16, 2023. This applies to individual returns and taxes that are due on April 18, 2023 and May 15, 2023, and business entity returns and taxes that are due on March 15, 2023, April 18, 2023, or May 15, 2023.

A3: If your principal residence or place of business is in one of the counties that are part of the declared disaster area, you are an affected taxpayer and entitled to relief. No supporting documentation is required. This applies to individual returns and taxes that are due on April 18, 2023 and May 15, 2023, and business entity returns and taxes that are due on March 15, 2023, April 18, 2023, or May 15, 2023.

A4: If you are not in a covered disaster area but your tax records necessary to meet a filing or payment tax deadline are located with your tax practitioner in a covered disaster area, you still qualify for the disaster relief. It is recommended taxpayers and tax practitioners retain records to substantiate they qualify for disaster relief. (e.g. utility bill, bank statement, etc.).

A5: Yes. If a taxpayer in a covered disaster area has a filing or payment deadline that falls between December 27, 2022, and October 16, 2023, the filing or payment will be considered timely if made on or before October 16, 2023. This basic rule applies to any passthrough entity elective tax that is due on March 15, 2023 or June 15, 2023.

A6: Yes. FTB will be able to identify and categorize the payments automatically. For example:

• If a taxpayer uses Web Pay on May 15, 2023, to make an estimated tax payment for tax year 2023, FTB will accept that payment request and process the payment as a timely estimated tax payment for the 2023 tax year.
• If a taxpayer electronically files a tax return, for example by October 16, 2023, and remits payment by October 16, 2023, the payment will be considered a timely extension payment.

A7: Yes, the postponement period for returns or payments due between December 27, 2022, and October 16, 2023, applies to affected trust and estate tax returns and payments.

A8: Yes. If you are an affected taxpayer who received a bill for a late filing penalty or late payment penalty relating to a due date that fell between December 27, 2022, and October 16, 2023, and you timely filed your return and paid your tax by May 15, 2023, you should contact FTB to have the penalty abated.

A9: Yes. If the last day of the 45-day identification period or the last day of the 180-day exchange period falls on or after December 27, 2022, the deadline for an affected taxpayer is postponed by 120 days or to October 16, 2023, whichever is later. The postponement period may not extend beyond the earlier of: the due date of the taxpayer’s return (including extensions) for the year of the transfer or one year.

A taxpayer is an affected taxpayer if the taxpayer’s principal residence is in one of the California counties identified by the federal government as the covered disaster area. In addition, a taxpayer qualifies for a postponement if the taxpayer had difficulty meeting the 45-day identification period or the 180-day exchange period due to the federally declared disaster for any of the following reasons:

1. The relinquished property or the replacement property is located in the covered disaster area.
2. The principal place of business of any party to the transaction is located in the covered disaster area.
3. Any of the other reasons outlined in Revenue Procedure 2018-58, Section 17, Special Rules for Section 1031 Like-Kind Exchange Transactions.

A10: A list of affected taxpayers is not required because the relief is automatically granted based on the zip code of the taxpayer's residence or principal place of business being in one of the counties in the disaster area. In addition, if a taxpayer does not reside in a covered disaster area but the taxpayer’s records necessary to meet a filing or payment deadline are located with the taxpayer’s tax professional who is in a covered disaster area, the taxpayer is entitled to relief. It is recommended taxpayers and tax practitioners retain records to substantiate they qualify for disaster relief. (e.g. utility bill, bank statement, etc.).

A11: Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred or the return for the prior year. When filing their return, taxpayers should write the name of the disaster in blue or black ink at the top of their tax return to alert FTB. If filing electronically, taxpayers should follow the software instructions to enter disaster information. If a taxpayer receives a late filing or payment penalty notice related to the postponement period, they should call the number on the notice to have the penalty abated.

Additional information and instructions are available in FTB Publication 1034, 2022 Disaster Loss: How to Claim a State Tax Deduction.