On October 6th, California Congressmen Doug LaMalfa (R-Richvale), Mike Thompson (D-St. Helena), and Kevin Kiley (R-Rocklin) led a letter to the IRS asking for an extension of tax filing and payment deadlines in all California counties that received a disaster declaration from December 2022 to July 2023.
Signed also by California Representatives Julia Brownley (D-Oakpark); Ken Calvert (R-Corona); J. Luis Correa (D-Santa Ana); Jim Costa (D-Fresno); John S. Duarte (R-Hughson); Mike Garcia (R-Santa Clarita); Josh Harder (D-Turlock); Young Kim (R-La Habra); Tom McClintock (R-Elk Grove); Jimmy Panetta (D-Carmel Valley); Michelle Steel (R-Surfside); David Valadao (R-Hanford); and Juan Vargas (D-San Diego), the letter urges the IRS to utilize their existing policy that allows for the postponement of deadlines of up to one year from the original deadline. As such, tax filings and payments, due on October 16, 2023, would be moved to April 2024.
This deadline extension would give Fire Victim Trust claimants an extra six months to await the passage of the Protect Innocent Victims of Taxation After Fire Act (H.R. 4970), which would exempt all wildfire relief payments from federal income taxes. If passed, taxes on claimants’ settlement money would not be enforced. The measure was scheduled to be marked up in the Ways and Means Committee on Wednesday, October 4th; however, the removal of the Speaker of the House has postponed the legislation due to the requirement to name a Speaker before legislative House work can proceed. Until the leadership question is resolved, its future is uncertain. Read the full letter here.