August 27, 2020

IRS Provides Extension to California and Iowa Taxpayers Affected by Natural Disasters

By John Bonk, Director, Tax & Business Services & Alex Toback, Staff Accountant, Tax & Business Services

IRS Provides Extension to California and Iowa Taxpayers Affected by Natural Disasters Tax Advisory Services

On August 24, 2020, the IRS provided guidance to taxpayers affected by the natural disasters in Iowa and California.

Per Notices IR-2020-190 and IR-2020-19, the IRS has extended the due date for various individual and business tax returns for taxpayers affected by the derecho storm in Iowa and the California wildfires. The extended due date for filing these returns and making tax payments to the Internal Revenue Service is December 15, 2020.

The extended due date of December 15, 2020, applies to individual and business taxpayers who:

  • Already received a valid extension;
  • Are located in an area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance; and
  • Tax exempt organizations with calendar year-end tax years, which have been granted a valid extension until November 15, 2020.

The current areas in California designated by FEMA as qualifying for individual assistance include:

  • Lake County;
  • Monterey County;
  • Napa County;
  • San Mateo County;
  • Santa Cruz County;
  • Solano County;
  • Sonoma County; and
  • Yolo County

The current area in Iowa designated by FEMA as qualifying for individual assistance is:

  • Linn County
    • It is important to note that the IRS is continually updating the list of areas qualified by FEMA for individual assistance. Additionally, the IRS is willing to extend these provisions to taxpayers who live or if the principal office is outside of designated disaster areas, but have records located in the affected area.

      The guidance provides extensions until December 15, 2020, for the following:

      • Individuals and businesses to file returns;
      • Third quarter estimated tax payments due September 15, 2020; and
      • Quarterly payroll and excise tax returns normally due October 31, 2020.

      For further assistance, please contact your Marcum State and Local Tax professional to address any questions regarding the California and Iowa tax filing and payment extensions.