Updated River Fire Evacuation Status
First, we would like to thank all of you that have checked on us and sent well-wishes during the River Fire evacuation. We appreciate you all very much. We are happy to tell you that the evacuation order for our office was lifted this afternoon. We will be back to business as usual (or as usual as things get these days, our pandemic operating procedures remain in place) tomorrow, August 25th.
Tax Relief for Victims of Local Wildfires Just Issued
Today the Internal Revenue Service issued rules that will provide tax relief for all our clients located in Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma and Yolo counties.
Federal Deadlines and Payment Dates Extended
The tax relief postpones various tax filing and payment deadlines that occurred starting on Aug. 14, 2020. As a result, affected individuals and businesses will have until Dec. 15, 2020, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, will now have until Dec. 15, 2020, to file. The IRS noted, however, that because tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief.
The Dec. 15, 2020 deadline also applies to quarterly estimated income tax payments due on Sept. 15, 2020, and the quarterly payroll and excise tax returns normally due on Oct. 31, 2020. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 15, 2020. Businesses with extensions also have the additional time including, among others, calendar-year corporations whose 2019 extensions run out on Oct. 15, 2020.
Disaster Declaration Means Possible Casualty Deductions
This is the tax relief which we hope none of our clients or friends will have to report. With the President’s declaration of a federal emergency due to the fires, if you have suffered losses to your property due to the fires you may be entitled to an itemized deduction for your loss.
If you suffered uninsured or unreimbursed disaster-related losses in these fires you can choose to claim them on either your 2020 return or your 2019 tax return. The process to report and use the loss is somewhat technical in nature and, since you can choose in which year to take the deduction, will require some tax planning.
To get the process started just give us a call at 831-758-5966 or email help@schollcpa.com.