Does the California extension apply to part-year residents?

Technical topics regarding tax preparation.
#1
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I have a client who relocated from Washington to California in 2022. I filed his taxes in May 2023 using his California address for the 2022 tax year, yet he received a letter indicating penalties and interest.

I'm seeking clarification on whether the California filing extension would be applicable in this case, given his part-year residency status.

Anyone knows or has experience dealing with the case like this?
Please consider visiting this post where my question at the end has not been answered yet:
viewtopic.php?f=8&t=12065, thanks!
 

#2
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According to CA-2023-01:

The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Jan. 8, 2023, and before Oct. 16, 2023, are granted additional time to file through Oct. 16, 2023.

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-severe-winter-storms-flooding-and-mudslides-in-california

So, if your client was a resident in the disaster area on the tax-filing and tax-payment deadline, then he is entitled to the postponed deadline.
 

#3
sjrcpa  
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On another forum I heard that IRS is sending interest and penalty notices to CA residents.
"So much for "The IRS computers will automatically grant relief based on the zip code.""
 

#4
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sjrcpa wrote:On another forum I heard that IRS is sending interest and penalty notices to CA residents. "So much for "The IRS computers will automatically grant relief based on the zip code.""

I suspect the IRS determines address eligibility based on both the previous and current year's information. If it relied solely on the current year, what would prevent an individual from another state from using a friend's address in a disaster-affected area in California?

Though it might be premature to conclude, long-time California residents haven't received letters regarding penalties and interest so far. Conversely, two timely filed Santa Clara residents have received refunds for estimated tax penalties. This discrepancy is due to my calculations, which are based on 4/18/2022 as the penalty and interest termination date, whereas the IRS use 12/27/2022 for both individuals. This latter date presumably marks the start of the disaster. Is the date uniformly applied across all affected counties, or does it vary by county? Can you set the date and calculate the estimated tax penalties properly?

As for taxpayers who moved to California from other states and owe taxes to those states, will those states also provide relief on penalty and interest charges?
Please consider visiting this post where my question at the end has not been answered yet:
viewtopic.php?f=8&t=12065, thanks!
 


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