2022 tax filing extended for CA storm victims

[hgtc]

For taxpayers located in federal declared "CA storm victims" counties, will Lacerte automatically extend form 1040 due date to 5/15/2023?

If not, how can we override filing due date in the program?

[rbynaker]

IMO these disaster extensions bring disaster to folks who were otherwise unaffected.

I can't speak to what Lacerte may or may not do but:

1) If you're planning on filing an extension anyway, do it by the April due date.  Historically you've been unable to efile them (or file them via DirectPay) after the pre-disaster deadline.  The IRS computers are not equipped to understand what you're trying to do.  In most cases in the past if you need to file an extension between 4/15 (or 16, 17, 18 whatever day of the week we're on this year) and the disaster deadline you have to file ON PAPER.  Which then sits in a trailer waiting to be opened until likely long after you've efiled the return and the IRS has assessed penalties.  You can eventually argue your way out of them but be sure to bill your clients way more than they "saved" by holding onto the money for an extra month.

2) If you're not filing an extension, file on time.  Clients can make a tax payment on DirectPay by the disaster extended deadline.  But even then, unless we're talking millions of dollars, the time value of one month is much lower than the stress cost of trying to get someone at the IRS to fix something if it goes wrong.

[hgtc]

just want to make sure I understand correctly.  If taxpayer lives in disaster area, but, was not affected by the storms, then, the extension rule does not apply to him?

[hgtc]

Can someone confirm that only those who were affected by the storms in disaster area qualify for 5/15/2023 extension?

[hgtc]

Thank you for your information.  Appreciate.

just want to clear my understanding, if taxpayer is not affected by the storms, he is not qualified for extension even if he resided in disaster area.  Right?

[amec · Accepted solution]

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area.

See Treas. Reg. § 301.7508A-1

[hgtc]

Thanks.

[CPACathy]

Is there a box to check in Lacerte?  Or will the software pick up on the zip code?

[luannemcgee]

Has anyone seen an input in Lacerte that will change the letter to the May 15th date based on zip code, or County input?  Or will this have to be done manually? 

[CPACathy]

No box to check, you can enter the revised due date to print in the letter.  If you want to e-pay the balance due, the letter says that the payment will be made on May 15, but I'm a little concerned about that being true.  2 phone calls later, I still don't feel comfortable that will happen correctly.

[Soccerdave71]

How do we schedule a payment date for 5/11/2023, since the taxes are not due till 5/15/2023?  Lacerte will not let me enter a date past 4/18/2023?

[CPACathy]

Soccerdave, did you change the date in the letter?  That should take care of the balance due, but I have not been able to do a work-around for the estimate payments.

[Soccerdave71]

Hi CPACathy, no I did not change the date in the letter.  I'm more concerned about the auto withdraw in Lacerte.  My client has to pay his balance due via electronic payment due to the amount owed, and does not want to pay it till a couple days prior to the due date.  When I try to enter 5/11, in the payment box, it tells me that it has to be a date of 4/18 or prior.

[CPACathy]

What if you file an extension, even though you don't need to?  Will Lacerte allow you to e-pay the balance due after the original due date, but before the extended due date?  Does it have to be the same day that you e-file the return?  Or can you schedule the payment for later?