San Francisco homes with storm in background

IRS Issues Notice Extending Tax Filing & Payment Deadline for California Storm Victims

Some relief from the California storms

Due to the intense storms hitting California in late 2022 and early 2023, the IRS announced in February this year a significant extension of the deadlines for filing and payment of various taxes until October 16, 2023. This extension applied to all Californians, with the exception of those residing in Lassen, Modoc, and Shasta counties.

The state of California followed suit, providing similar extensions. Consequently, a majority of taxpayers in California were given extra time to file and settle their 2022 income taxes, 2022 gift taxes, estate tax returns due within 2023, and estimated income tax payments for 2023. Extensions were also granted for certain critical tax-related activities, including the 45- and 180-day periods for Section 1031 exchanges.

Numerous Californian taxpayers, planning ahead, set the payment of their 2022 income taxes and estimated taxes for 2023 for October 16, ensuring their punctuality. The IRS processed these planned tax payments on the morning of October 16.

However, an unexpected turn came later that day when the IRS released Notice 2023-189, which pushed the tax filing and payment deadlines from October 16 to November 16, 2023. California promptly mirrored this additional extension. Moreover, deadlines for specific urgent tax procedures, encompassing those for Section 1031 exchanges, received extensions as well.

It’s also crucial to recognize that the IRS extensions are designed to operate in parallel with any other extensions taxpayers might have already secured. For instance, if someone passed away on September 17, 2022, the original due date for the estate tax return would be nine months from that time, falling on June 17, 2023.

However, with the recent extensions, this deadline shifts to November 16, 2023. Should the executor opt for the standard six-month filing extension, this would be calculated from the initial June 17 deadline, meaning the extended deadline can only stretch to December 17, 2023, not six months from November 16.