Tax relief for taxpayers in California affected by wildfires

Certain deadlines falling on or after July 14, 2021, and before November 15, 2021, are postponed through November 15, 2021.

Certain deadlines falling on or after July 14, 2021, are postponed

Taxpayers in California affected by wildfires (beginning date July 14, 2021) now have until November 15, 2021, to file various individual and business tax returns and make tax payments.

An IRS release—CA-2021-03 (August 27, 2021)—explains that after a disaster declaration by the Federal Emergency Management Agency (FEMA) for the wildfires that began July 14, 2021, “affected taxpayers” in Lassen, Nevada, Placer, and Plumas counties may be eligible for tax relief. This relief applies for individual taxpayers affected by the wildfires if residing or having a business in these counties.

The FEMA declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.

  • Certain deadlines falling on or after July 14, 2021, and before November 15, 2021, are postponed through November 15, 2021 (including the deadlines for filing individual income tax returns and making payments of tax).
  • The November 15, 2021 deadline applies to the quarterly estimated tax payment normally due on September 15.
  • The November 15, 2021 deadline also applies to the quarterly payroll and excise tax returns normally due on August 2, 2021.
  • Penalties on deposits due on or after July 14, 2021, and before July 29, 2021, will be abated as long as the tax deposits were made by July 29, 2021.

If an affected taxpayer receives a late-filing or late-payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer is directed to call the telephone number on the notice to have the IRS abate the penalty. 

 

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