In response to winter natural disasters affecting 55 counties in California, the California Franchise Tax Board (FTB) has granted an extension for the filing and payment of tax year 2022 state taxes. Most Californians now have until November 16, 2023, to meet their tax obligations without incurring penalties, as confirmed by the FTB.
This extension mirrors a similar announcement from the Internal Revenue Service (IRS), which has granted affected taxpayers in the specified California counties additional time to file and pay their federal income taxes for the 2022 tax year. Individuals who would have faced an October 16, 2023, deadline now enjoy an extended period until November 16, 2023, to fulfill their tax responsibilities.
The FTB typically aligns its policies with the IRS regarding postponement periods for disasters declared by the president. Californian taxpayers who have been impacted by the declared disaster may also be eligible to claim a deduction for a disaster loss. Detailed information and instructions can be found in FTB Publication 1034, titled “2022 Disaster Loss: How to Claim a State Tax Deduction.”
Taxpayers have the option to claim a disaster loss in two ways. They may choose to claim the loss for the 2023 tax year when filing next spring, or they can offset the loss against 2022 income in this year’s return. Those who have already filed their 2022 return can file an amended return. Opting for the 2022 return provides the advantage of a potentially earlier refund issuance by the FTB.
To alert the FTB about their situation, taxpayers should prominently write the name of the disaster (e.g., California winter storms) in blue or black ink at the top of their tax return. For electronic filing, taxpayers should follow the provided software instructions to input disaster information. In case affected taxpayers receive penalty notices related to the postponement period, they are advised to call the number specified on the notice to seek penalty abatement.
Furthermore, individuals who have suffered losses due to the disaster may request free copies of their state tax returns to replace any lost or damaged documents. To do so, taxpayers can complete form FTB 3516, clearly stating the name of the disaster in blue or black ink at the top of the request form.
The FTB plays a crucial role in administering two of California’s major tax programs: Personal Income Tax and the Corporation Tax. Additionally, the board oversees non-tax programs and manages delinquent debt collection functions, including delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles and court-ordered debt. Annually, FTB’s tax programs contribute to collecting over 70 percent of the state’s general fund. For more information on taxes and fees in California, visit taxes.ca.gov.