California Disaster Returns

[mlebovitz]

California taxpayers have been provided disaster relief by the state and federal governments.  The FEMA designation is DR-4699-CA (4/3/2023).  The designated areas cover the vast majority of the state and its major population areas.

Per the IRS and Franchise Tax Board, taxpayers have until 10/16/2023 to file and pay for income taxes without penalty under code section 7508A. 

Based on my limited experience with a previous disaster declaration, text stating the disaster declaration information  should appear at the top of page 1 of form 1040 (same area as the notation for a deceased taxpayer).  Payment dates should be allowed up until the revised date of 10/16/2023.

I have spoken with quite a number of tech support staff at Proconnect – most of whom were unaware of the disaster provision. 

One rep stated that using the Letter menu the date could be changed which resulted in the Federal direct debit showing a payment record for 10/16/2023; however, the California payment remains at 4/18/2023 or when filed.  It also doesn’t address estimated payments which can also be delayed. 

Another rep suggested using the field Near the bottom of the Miscellaneous section of the Miscellaneous menu (6th field from the bottom) to type the California Disaster information, but this does not reflect the payment and penalty provisions. 

According to posts on a professional board, Ultra Tax has programmed their system to handle the provisions of the declaration. Another person stated that approximately 19,000,000 returns are filed from California.

For the millions who have relied on Intuit as an industry leader for decades, the company should be able to provide this functionality for all in its home state of California and for all its products.   

Intuit’s programming staff needs to provide the support that preparers need after such a widespread disaster.

Earlier this week, I sent an email to the Office of the President of Intuit and have so far only received a message that there is no case number.  I later got one which I forwarded in response to the email – 1597886594. 

Along with members of my professional group, I am filing extensions for my California clients. I could finish more returns if programming reflected this issue.  It is also impacting my cash flow because I bill my clients when I complete their returns. 

How are others managing this issue?

Marcy Lebovitz, CPA   Santa Monica, CA