In February 2024, the County of San Diego was designated a Federally declared disaster area as a result of the extreme rainfall and flooding that affected the County starting on January 21, 2024. As you may have read, the IRS and California Franchise Tax Board (FTB) have postponed various tax filing and payment deadlines from January 21, 2024 through June 17, 2024 for residents and businesses located in San Diego County due to this disaster. The disaster area and postponement only includes San Diego County. The new deadline for tax payments and tax filings that fall between January 21st and June 17th is now June 17, 2024.
Affected taxpayers include anyone who lives in San Diego County and any businesses located in the county, regardless of whether or not taxpayers suffered damages because of the storms. The IRS and FTB will automatically provide filing and penalty relief to any taxpayer with an address of record located in the disaster area. Therefore, taxpayers do not need to contact the agencies to get this relief, nor do they need to file for an extension until June 17, 2024. Extensions will still be required for your 2023 tax returns if you are unable to file your 2023 returns by the June 17, 2024 deadline, so we will still be extending your return if you are unable to file by the new deadline.
The new June 17, 2024 deadline applies to all the following tax filings and payments:
- Individual income tax returns and payments normally due on April 15, 2024.
- 2023 contributions to IRAs and health savings accounts for eligible taxpayers.
- 2024 estimated tax payments normally due on April 15, 2024.
- Quarterly payroll and excise tax returns normally due on January 31 and April 30, 2024 (but not the related payment deadlines).
- Calendar-year partnership and S corporation returns normally due on March 15, 2024.
- Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
- Calendar-year tax-exempt organization returns normally due on May 15, 2024.
- California pass-through entity tax payment normally due March 15, 2024.
This is not an exhaustive list of affected tax filings, tax payments, and income tax related actions that are effected by the deferral, so if you have questions on your situation please contact your tax preparer.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records, necessary to meet a deadline occurring during the postponement period, are located in the affected area. For example, if our office holds necessary records for you to file, you may qualify for the deferral regardless of where you are located. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.
Our filing instructions that are included with your 2023 tax return will state the original payment deadlines until our software is updated to reflect the new due dates. We understand that many of our clients may have large tax payments due, and the deferral of payments to June 17, 2024 will offer significant advantages given today’s high interest rates. There will be no penalties or interest charged by the FTB or IRS if you decide to defer payment until the extended deadline.
If you have any questions or concerns regarding these postponed deadlines, please do not hesitate to contact your tax preparer.