The members of the North Bay Enrolled Agents and the members of CSEA mourn with our neighbors the losses incurred with the California wildfires. We can’t turn back time but what we can do is bring you the latest tax information available on dealing with this loss. We will be adding information on how to deal with the requirements for reporting this loss as well as any relevant information we find to help you through this period. We will provide links to additional resources that may be appropriate and the members of CSEA will be available at no charge to provide you with guidance.

Latest Tax Information for Victims of California Disasters

Tax Relief for victims of the early September California Wildfires

The IRS announced on Friday that victims of the California wildfires that began on September 4th may receive tax relief from the IRS. Note this is separate relief from that provided for the August wildfires.

Individuals and households who reside or have a business in Fresno, Los Angeles, Madera, Mendocino, Napa, San Bernardino, San Diego, Shasta, Siskiyou, and Sonoma counties qualify for tax relief. but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief.

The tax relief postpones filing and paying deadlines for taxpayers who reside in or have a business in the disaster area. Certain deadlines falling on or after September 4, 2020, and before January 15, 2021, are granted additional time to file through January 15, 2021. This includes individuals and businesses who had a valid extension due to run out on October 15, 2020.

The January 15, 2021 deadline also applies to quarterly estimated income tax payments due on September 15, 2020, and the quarterly payroll and excise tax returns normally due on November 2, 2020, it applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 16, 2020, and penalties on payroll and excise tax deposits due on or after September 4, 2020, and before September 21, 2020, will be abated as long as the tax deposits were made by September 21, 2020.

California automatically conforms to Federal Disaster Declarations and the FTB announced its own tax relief on November 5th.

Further, a presidential disaster declaration allows a taxpayer to take a Casualty Loss on their tax return. You are able to take it on the 2020 tax return or amend 2019 to take it. See our earlier articles to get more information on taking the casualty loss deduction.

General Disaster Tax Relief Information

IRS

IRS Disaster Resource Guide for Individuals and Business – This resource guide provides information to individuals and businesses affected by a federally declared disasters.

Casualty Losses for Tax Years 2018 through 2025 (No easy to read guidance has been published yet. This is a link to the code section.  Sec. 165(h)(5) was added as part of the Tax Cuts and Jobs Act limiting personal casualty losses unless taxpayer is in a Federally Declared Disaster).

Franchise Tax Board

Disaster Loss and your CA state income tax

List of California Disasters

 

California Department of Tax and Fee Administration (formerly the SBOE)

Emergency tax or fee relief is available from the CDTFA for business owners and feepayers directly affected by disasters declared as state of emergencies

 

 

Flyer to provide at meetings, info sessions and shelters

Flyer

Property Tax Reassessments

Employment Development Department (EDD)

California EDD provides a variety of services to individuals and businesses affected by disasters in California

 

 

Federal Disaster Assistance Resources

Federal Disaster Assistance – The Disaster Assistance Improvement Program’s (DAIP) mission is to provide disaster survivors with information, support, services, and a means to access and apply for disaster assistance through joint data-sharing efforts between federal, tribal, state, local, and private sector partners

Contact Information

North Bay Enrolled Agents (NBEA)

North Bay Enrolled Agents logoEnrolled Agents (EAs) are federally-licensed tax practitioners who may represent taxpayers before the IRS when it comes to collections, audits and appeals. As authorized by the Department of Treasury’s Circular 230 regulations, EAs are granted unlimited practice rights to represent taxpayers before IRS and are authorized to advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled agents are the only federally-licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS. The enrolled agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department. Enrolled agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers at all administrative levels within the IRS.

NBEA is the North Bay Chapter of the California Society of Enrolled Agents.