Important IRS Information about the California Wildfires

It has been a difficult ten days for all of us in the North Bay area. Thank you to everyone that has reached out to check on us and our families. Your support is very appreciated. Many of you have asked how you can help. If you are moved to, here are a few places that are directly serving the community: 

• The Redwood Credit Union is now accepting financial donations to assist fire victims and aid relief efforts. 100% of the tax-deductible donations will go directly to support those affected.
• The Redwood Empire Food Bank is accepting financial donations to help feed those in evacuation shelters. 
• The California State Firefighters' Association is accepting financial donations for firefighters who have lost their homes in these fires.

We wanted to make our clients aware of two important items from the Internal Revenue Service. 

Firstly, those residents affected by the California wildfires now have until January 31, 2018, to file certain individual and business tax returns and make certain tax payments. 

This includes an additional filing extension for taxpayers with valid extensions that would have been due Monday, October 16. (Because tax payments related to the 2016 returns were originally due on April 18, 2017, those payments are not eligible for this relief. 

Currently, the IRS is providing relief to those in Butte, Lake, Mendocino, Napa, Nevada, Sonoma, and Yuba counties. Individuals and businesses in these counties, as well as firefighters and relief workers who live elsewhere, qualify for this extension. 

The tax relief postpones various tax filing and payment deadlines that occurred starting on October 8, 2017. Affected individuals and businesses will have until January 31, 2018, to file returns and pay any taxes originally due during this period.

This includes the January 16, 2018, deadline for making quarterly estimated tax payments.

The IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due after October 8 and before October 23, if the deposits are made by October 23, 2017. Details on available relief can be found on the disaster relief page on IRS.gov. 

A variety of business tax deadlines are also affected. If you have any questions, please call our office. 

Secondly, the IRS is also warning about tax scams targeting victims of the wildfires. Please beware of fake charities that may try to get money or personal information from you. Solicitations for these fake charities may involve contact by phone, social media, email, or in person. 

For more information about these scams, click here.