Fires have ravaged various counties throughout Northern California since July 23, leaving the lives of many businesses and residents destroyed with sometimes no warning. Because of the widespread destruction, President Trump declared a state of emergency which allows the Federal Emergency Management Agency and the Department of Homeland Security to assist with disaster recovery measures. Also, the IRS has acted to provide tax relief for the residents that have been affected by the raging fires in Shasta County. For those businesses and residents in Shasta County, the IRS has stated possible eligibility for tax relief. While you can read about the relief on the IRS website, here are the main points for the relief for residents of Shasta County:

  • If you had a deadline scheduled between July 23 and November 30, you may be eligible to receive an extension through November 30. This includes:
    • Any penalties on payroll and excise tax deposits that were due between July 23 and August 7 may be abated as long as the deposits are received by August 7.
    • Tax filings, including extensions, due between July 23 and November 30
    • Estimated income tax payments that are due on September 17
    • Quarterly payroll and excise tax returns that were due on July 31 or October 31
    • Automatic extensions until November 15 for organizations that are tax-exempt
  • In order to claim disaster-related losses on your tax return for 2017 or 2018, list “California, Wildfires and High Winds” at the top of the form for an expedited refund
  • Fees are waived for affected residents who requested copies of prior year tax returns
  • If you are contacted by the IRS regarding collection of payment or an examination, explain your circumstances
    • You can download relevant IRS forms from the IRS website or order them over the phone at 800-829-3676
    • You can call the IRS with general tax questions at 800-829-1040

     

    We Are Here For You

    The victims of the horrible wildfires throughout California are in our thoughts as we wish for their safety and recovery. The team at MBS Accountancy is here for any questions you may have regarding your eligibility for the information in this article. As you cope with your losses and attempt to rise above this horrible tragedy, we are here to help you with all of your tax questions.