Most CA Tax Filers are Under IRS & FTB Emergency Extension

The California Franchise Tax Board (FTB) and Internal Revenue Service (IRS) are reminding tax-filers that the emergency deadline filing extension for most counties impacted by winter storms, flooding, landslides and mudslides is now Oct. 16, 2023 (not the usual April 15 deadline).

Credit unions across California that are serving members/residents in those counties should be prepared and appropriately adjust their tax-filing deposit inflow and outflow expectations accordingly. In total, these eligible counties are listed as covered disaster areas in the IRS January 10 announcement and IRS January 24 announcement.

Only California taxpayers affected by the recent storms qualify for this extension with respect to individual and business tax returns, as well as those making certain tax payments. This includes:

• Individuals whose tax returns and payments are normally due on April 18.
• Quarterly estimated tax payments that are normally due on January 17, March 15, April 18, June 15, and September 15.
• Business entities that have tax returns normally due on March 15 and April 18.
• Pass-through entity (PTE) elective tax payments that are normally due on March 15 and June 15.

The extension applies to “disaster areas” as designated by the U.S. Federal Emergency Management Agency (FEMA). Californians won’t have to prove they were directly impacted by the severe winter weather to receive an extension. Residents in the impacted counties will automatically receive the tax extension and will not need to provide documentation.

The FTB and IRS’s postponement of time to file and pay does NOT apply to residents and businesses located in the following three counties: Lassen, Modoc, and Shasta. Residents and businesses in these counties must file and pay by the normal established deadlines.

You can view the FTB’s update here.