When I first started working in taxes, close to four decades ago, it seemed like the April 15 filing deadline for individual returns was sacrosanct. Since the date is – quite literally – written into the law, changing it on a whim was difficult and the only time it might fall a day or two late was if the 15th fell on a Saturday or Sunday, in which case the filing deadline would be extended until the following Monday. I’m not sure exactly when that started to change, but change it has, and sometimes it feels like you need to mark your calendar in pencil – not ink – when it comes to the date you need to file your return.
So, when are taxes due for your 2022 tax returns, filed in 2023? Well, the simple answer is they are still due on April 15, 2023, but since that date is a Saturday, the normal filing deadline would be April 17, the following Monday. But wait! If you’ve been paying attention, you probably know that the IRS announced earlier this year that tax returns would be due on April 18, which is a Tuesday. What?
The April 18 due date has come about in the last decade or so because of a holiday celebrated by several East Coast states called “Patriots’ Day.” This holiday was originally celebrated in six states in observance of the first battles of the American Revolutionary War, which were the battles of Concord, Lexington, and Menotomy in 1775. Originally celebrated on April 19, the actual anniversary of the battles, it eventually moved to the third Monday in April. This means that if April 15 falls on the weekend, it’s likely to conflict with this state holiday. And while the federal government rarely stops anything for a state holiday, in this case, the holiday was observed by the federal agencies in those states that observe the holiday, including one of the larger IRS service centers located in Massachusetts. Because many states file their returns at the Andover service center, the IRS determined it was easier to just shift the due date for the entire country if the filing deadline conflicted with Patriots’ Day, rather than have a special due date for just six states. Think about that for a minute – your tax deadline is now determined by events that took place nearly 250 years ago. Of course, there was no income tax system back then, so it’s not something the Founding Fathers would ever foresee.
But wait, there’s more! That sounds like a bad line from a television commercial, but the IRS has also started to bend the filing deadline rules for people who live in states impacted by federally declared states of emergency and disasters. And boy, does it seem like we’ve had a flood of disasters these last few years. It’s been a perfect storm (if you’ll pardon the puns). You’re probably most familiar with the disasters declared by the COVID-19 epidemic, when everyone got an additional three months to file their returns for 2020 in 2021, and an extra month in 2022 for the 2021 returns. But federally declared disasters didn’t stop and, for 2022’s filing season, there are other due dates you may be able to use if you live in certain states or counties.
California
We joke in California that our seasons have become drought, fire, mudslide, and earthquakes, but this last winter has proven to be exceptionally wet. A series of “atmospheric river” storms have pummeled the West Coast, resulting in a record snowpack in the mountains, something the state desperately needed (just maybe not all at once).
Most California taxpayers will get a break in filing their tax returns for this year due to the resulting floods, mudslides, and snow. The IRS announced that taxpayers in every county of California EXCEPT Imperial, Kern, Lassen, Modoc, Plumas, Shasta, and Sierra counties, have until October 16, 2023, to file most tax returns due between January 8, 2023, and October 16, 2023. This includes the following returns:
- Individual income tax returns
- Partnership and Corporation returns
- Estate and trust income tax returns, and Estate tax returns
- Gift and generation-skipping returns
- Annual information returns for tax-exempt organizations
- Payroll tax returns
- Excise tax returns, and
- Employee benefit plan returns (the Form 5500 series).
Additionally, most tax payments due between January 8, 2023, and October 16, 2023, are also not due until October 16, 2023. These payments include estimated tax payments, payments due with the return, and retirement plan contributions (such as IRA contributions), including employer plan contributions. If paid by October 16, 2023, these payments will not be subject to a late payment penalty. However, the date to submit payroll tax deposits has not been extended. There was an exception for payroll tax deposits due in the early part of January if the payment was due on or after January 8, but those needed to be deposited no later than January 23, 2023.
It should be noted that taxpayers who reside or have their business in these counties do not have to be directly affected by the storms to claim this extended time period for filing and payment.
Alabama
A couple of other states have also enjoyed the weather fun this year and, likewise, have been given additional time to file and/or pay income taxes. One of those states is Alabama, where victims of straight-line winds, storms, and tornadoes beginning on January 12, 2023, now have until October 16, 2023, to file various individual and business income tax returns and make payments. Residents of the following counties in Alabama may take advantage of this extension: Autauga, Barbour, Chambers, Conecuh, Coosa, Dallas, Elmore, Greene, Hale, Mobile, Morgan Sumter, and Tallapoosa counties.
This extension applies to individuals who reside or have businesses in those counties and includes individual income tax returns and business tax returns. Eligible taxpayers also have until October 16 to make contributions for 2022 to their IRA or HSA accounts, and to file their returns and make any payments due. This also applies to estimated tax payments normally due on January 17, 2023, and April 18, 2023. Quarterly payroll and excise tax returns due on January 31, 2023, and April 30, 2023, now also have until October 16, 2023, to be filed, and late payroll tax deposits due on or after January 12, 2023, and before January 27, 2023, will not be subject to a penalty if they were made by January 27, 2023.
Georgia
Since Georgia joined in on the “fun” that Alabama was having, it also has an extended due date due to straight-line winds, storms, and tornados beginning on January 12, 2023. Like Alabama, the new extended due date is October 16, 2023, and it applies to the same types of returns and tax payments as were granted to Alabama (see above). This extension applies to households and businesses located in Butts, Crisp, Henry, Jasper, Meriwether, Newton, Pike, Spalding, and Troup counties.
The IRS automatically identifies taxpayers who live in the covered disaster areas but affected taxpayers who reside or have a business outside the area may also be impacted. The IRS has noted that, due to their computer systems, taxpayers claiming relief under these disaster designations may still receive notices assessing late payment or late filing penalties when they do file their returns. If that occurs, you just need to call the IRS’ disaster hotline at 866-562-5227 to request that the penalties be abated. If you have a membership here at TaxAudit, you can also report your notice to our helpful Customer Service representatives, who will be happy to assist you. If you do not live in the affected counties in California, Alabama, or Georgia, your filing deadline is still April 18, 2023.
Since we haven’t even got through the first quarter of 2023, to paraphrase the immortal words of Bette Davis, “Buckle up, it’s going to be a bumpy year.”