Help with California winter storms2022-2023

The 2022 LLC annual tax (normally due on April 15, 2022, for calendar year filers) and the 2022 LLC estimated annual fee (normally due on June 15, 2022, for calendar year filers) do not qualify for the California severe winter storm postponement (December 27, 2022, through November 16, 2023). Refer to Q&A #24 and #25 for the list of tax returns and payments that qualify.

Overview

Use this page to find answers to questions about 2022-2023 winter storm tax relief.

Q1: Am I eligible for tax relief if my principal residence or place of business is not in one of the counties identified as a disaster area from the California storms?

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 county is not a designated disaster area: Lassen.

Modoc and Shasta county were designated disaster areas and had until August 15, 2023, to file and pay for tax year 2022. For more information about the relief related to Modoc and Shasta visit IRS announces tax relief for victims of severe winter storms.

Q2: What tax relief is available if my principal residence or place of business (including tax-exempt organizations) is in one of the counties identified as a disaster area from the California storms?

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

Taxpayers who are affected by a presidentially declared disaster may claim a deduction for a disaster loss. Additional information and instructions are available in FTB Publication 1034, 2022 Disaster Loss: How to Claim a State Tax Deduction.

Taxpayers can claim a disaster loss in one of two ways. They may claim the disaster loss for the 2023 tax year when they file their return next spring, or they may claim the loss against 2022 income on this year’s return. An amended return may be filed by those who already have filed this year. The advantage of claiming the disaster loss on a tax year 2022 return is that FTB can issue a refund sooner.

Taxpayers should write the name of the disaster (for example, California winter storms) in blue or black ink at the top of their tax return to alert FTB. If taxpayers are filing electronically, they should follow the software instructions to enter disaster information. Disaster victims also may receive free copies of their state returns to replace those lost or damaged. Taxpayers may complete form FTB 3516 and write the name of the disaster in blue or black ink at the top of the request.

*Note: If your principal residence or place of business is in Modoc or Shasta counties, income tax filing and payment deadlines that fall between February 21, 2023, and August 15, 2023, are due August 15, 2023.

Q3: Do I need to demonstrate that I was affected by the California storms that led to the disaster declaration, or do I automatically receive an extension to file and pay because I reside in one of the counties designated as a covered disaster area?

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 November 16, 2023, and business entity returns and taxes that are due on March 15, 2023, April 18, 2023, or November 16, 2023.

Q4: If I am not in a covered disaster area but my tax records necessary to meet a filing or payment deadline are located with my tax practitioner who is in a covered disaster area, do I qualify for relief?

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.).

Q5: Does the payment deadline that is moved to November 16, 2023 (or Aug. 15, 2023 for Modoc and Shasta counties), also apply to a passthrough entity elective tax that is due on March 15, 2023, and June 15, 2023?

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

Q6: Are FTB's systems equipped to provide proper payment identification for all types of extended deadline payments and for all types of taxpayer entities?

A6: FTB will not be able to identify and categorize extended payments automatically. Label payments by including the tax year and payment type when submitting to FTB. To ensure we process your payments timely and accurately, do not combine payments for different tax years. In addition, Pass Through Entity (PTE) elective payments need to be submitted separately. Use the Tax Year Payment Tables to determine how to submit payments.

*Note: If your principal residence or place of business is in Modoc or Shasta counties, income tax filing and payment deadlines that fall between Feb. 21, 2023, and Aug. 15, 2023, were due Aug. 15, 2023.

Q7: Will the tax returns and payments of a trust or estate in a covered disaster area for the 2022 tax year be considered timely if made by November 16, 2023 (or Aug. 15, 2023 for Modoc and Shasta counties)?

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

*Note: If your principal residence or place of business (including tax-exempt organizations) is in Modoc or Shasta counties, income tax filing and payment deadlines that fall between Feb. 21, 2023, and Aug. 15, 2023, are due Aug. 15, 2023.

Q8: I am an affected taxpayer who received a bill for a late filing penalty or late payment penalty relating to an original or extended due date that fell during the disaster postponement period. Can I have the penalty abated?

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 November 16, 2023, and you timely filed your return and paid your tax by November 16, 2023, you should contact FTB to have the penalty abated.

*Note: If your principal residence or place of business is in Modoc or Shasta counties, income tax filing and payment deadlines that fall between Feb. 21, 2023, and Aug. 15, 2023, are due Aug. 15, 2023.

Q9: I am an affected taxpayer who began an Internal Revenue Code section 1031 transaction with either a 45-day identification period or a 180-day exchange period that hadn’t expired by January 8, 2023. Does the disaster postponement to November 16, 2023 (or Aug. 15, 2023 for Modoc and Shasta counties), apply to these transactions?

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 November 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:

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

Q10: The IRS is asking tax practitioners to furnish a list of affected clients, and a power of attorney signed by each affected client, so the IRS can code the disaster relief extension for the relevant accounts. Will FTB provide a similar procedure and would FTB require a power of attorney for each client?

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.).

Q11: I am an affected taxpayer. Can I claim a disaster loss related to these winter storms?

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.

Q12: I am an affected taxpayer. If I make a combined estimate payment for prior quarters on or before November 16, 2023 (or Aug. 15, 2023 for Modoc and Shasta counties), and it is more than $20,000, will I be required to make all future payments electronically?

A12: Yes. If you make a combined estimated tax payment for prior quarters on or before November 16, 2023 (or Aug. 15, 2023 for Modoc and Shasta counties), and it is more than $20,000, you must make all future payments to us electronically.

Taxpayers may request a waiver of this electronic payment requirement by completing FTB 4107.

Visit Mandatory E-Pay for Individuals for more information.

Business entities may complete Electronic Funds Transfer Election to Discontinue or Waiver Request.

Q13: Are the filing and payment deadlines for nonwage withholding included in the disaster relief extended deadline to November 16, 2023, for affected taxpayers?

A13: Yes. Filing nonresident withholding information returns or remitting withholding payments (FTB Form 592 series) are tax acts included in the disaster relief extended deadline to November 16, 2023, for affected taxpayers. In addition, filing real estate withholding information returns or remitting withholding payments (FTB Form 593 series) are also tax acts included in the disaster relief extended deadline to November 16, 2023, for affected taxpayers.

Q14: I am an affected taxpayer. If I file my 2022 tax return now or any time prior to the November 16, 2023 postponed due date (or Aug. 15, 2023 for Modoc and Shasta counties) but wait until November 16, 2023 (or Aug. 15, 2023 for Modoc and Shasta counties), to pay the tax in full, will I be subject to a late payment penalty?

A14: No. If you file your 2022 tax return now but wait to pay your tax, we will not impose a late payment penalty for the 2022 tax year if you pay your 2022 tax in full on or before November 16, 2023.

Q15: I am an affected taxpayer. Are my installment agreement payments suspended through the extended deadline of November 16, 2023 (or Aug. 15, 2023 for Modoc and Shasta counties)?

A15: No, installment agreement payments are not automatically suspended as part of the disaster relief. Taxpayers may contact FTB to request to skip a payment on their installment agreement if they are experiencing a hardship due to a disaster. Visit Help with payment plans for additional information.

Q16: I previously filed my 2022 tax return and recently received a Notice of Tax Return Change – Revised Balance, indicating that FTB made a correction to my return. I did not owe any tax when I filed my return. Because of this change, I now have a revised balance due. Does this notice mean my revised balance is due now?

A16: No, if your principal residence or place of business is in one of the counties identified as a disaster area, returns and payments that are due between December 27, 2022, and November 16, 2023, are due on November 16, 2023. If your principal residence or place of business is in Modoc or Shasta counties, returns and payments that are due between February 21, 2023, and August 15, 2023, are due on August 15, 2023. The postponement of time to file and pay does not apply to residents and businesses located in Lassen County.

You may pay the balance due now. But, if you wait to pay your revised taxes by the postponed due date depending on where your principal residence or place of business is located, the payment will be considered timely and you will not be subject to penalties or interest.

Q17: The disaster declarations relating to the winter storms in California postponed the due date for multiple personal and business entity tax payments. May I make those multiple payments with a single, lump-sum payment when they are due?

A17: The disaster declarations extended the due date for multiple personal and business entity tax payments covering two tax years. To ensure we process your payments timely and accurately, please do not combine payments for different tax years. Instead, we ask that you submit separate payments instead of one, lump-sum payment for the following payments. Please follow the link for more information on disaster declaration tax payments.

Q18: Can I cancel an already scheduled payment?

A18: Although it is not recommended, you may cancel your payment up to 2 days prior to the payment being processed. If you choose to cancel the current payment that is scheduled, you will need to reschedule the payment to ensure 2023 tax amounts owing are paid on or before November 16th, 2023.

Q19: If my payment is currently being “processed”, can FTB stop this process?

A19: No. FTB cannot stop a payment that is currently being “processed”. Although it is not recommended, you may contact your financial institution to see about canceling a payment. Please be aware, some financial institutions may charge you a fee.

Q20: If I already filed and paid, can I get my money refunded and then send a payment in November?

A20: Unfortunately, No.

Q21: Will there be erroneous penalty notices? Why?

A21: FTB is taking proactive steps and strives to send accurate penalty notices. Taxpayers who file returns after 10/16/23, may be assessed penalties and interest. If a taxpayer receives a notice they do not agree with, they should contact FTB.

Q22: When might penalty notices for late tax returns or late tax payments be issued?

A22: Notices of a balance due are scheduled to be mailed out starting early December 2023.

Q23: What do taxpayers need to do if they receive a notice they do not agree with?

A23: If a taxpayer receives a notice they do not agree with, they should contact FTB. They can visit our website at www.ftb.ca.gov and search “contact us” to review our contact options. There, taxpayers can connect with us utilizing electronic chat. Taxpayers can also call us weekdays from 8 AM to 5 PM at 800-852-5711 or if calling from outside of the US at 916-845-6500.

Q24: What returns and payments qualify for the Nov. 16 deadline?

A24: Eligible returns and payments include:

2022 individual income tax returns and payments normally due on April 18, 2023.
Quarterly estimated tax payments normally due on April 18, 2023, June 15, 2023, and Sept. 15, 2023.
Calendar-year 2022 partnership, limited liability company, and S corporation tax returns and payments normally due on March 15, 2023.
Calendar-year 2022 corporate and fiduciary income tax returns and payments normally due on April 18, 2023.
Calendar-year 2022 returns filed by tax-exempt organizations normally due on May 15, 2023.
Passthrough Entity Elective Tax that is due on March 15, 2023, or June 15, 2023.

Q25: What returns and payments do not qualify for the Nov. 16 deadline?

A25: Please see A24 above for the income tax returns and payments that qualify for the Nov. 16 relief. The 2022 LLC annual tax (normally due on April 15, 2022, for calendar year filers) and the 2022 LLC estimated annual fee (normally due on June 15, 2022, for calendar year filers) do not qualify for the California severe winter storm postponement (December 27, 2022, through November 16, 2023). Like the IRS there are a couple of information returns that do not qualify for the postponed due date. For more information visit IRS postpones tax-filing and tax-payment deadline.

Q26: Do taxpayers need to do anything to benefit from this relief?

A26: Taxpayers do not need to contact FTB to get this relief.