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?