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Victoria Majors Jones, CPA - Blog

Franchise Tax Board Extends Filing Deadlines in California for Taxpayers Affected by Winter Storms

by Victoria Majors Jones, CPA on 01/13/23

The Franchise Tax Board (FTB) has announced tax relief for those impacted by the winter storms in California. 

President Biden and Governor Newsom declared a state of emergency throughout California in response to the recent winter storms. These declarations mean residents and businesses in California who have been affected by severe winter storms, flooding, and mudslides are eligible for tax relief. 

To help alleviate some of the stress many have endured during this trying period, the FTB has extended the filing and payment deadlines for individuals and businesses in California until May 15, 2023. 

This relief applies to deadlines falling on or after January 8, 2023, and before May 15, 2023, including the 2022 individual income tax returns due on April 18 and the quarterly estimated tax payments, typically due on January 17, 2023, and April 18, 2023. 

“This extension offers much-needed relief to taxpayers impacted by these powerful storms,” said Governor Newsom. “For some, this will provide additional time to file their California tax returns or make their quarterly estimated tax payment to the state.” 

Disaster Area Residents and businesses in Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo, and Yuba counties who have been affected by severe winter storms, flooding, and mudslides are eligible for tax relief. 

Tax Relief The IRS announced tax relief for Californians affected by these winter storms. Taxpayers affected by these storms qualify for an extension to May 15, 2023, to file individual and business tax returns and make certain tax payments. This includes: Individuals whose tax returns and payments are due on April 18, 2023. Quarterly estimated tax payments due January 17, 2023, and April 18, 2023. Business entities whose tax returns and payments are due on March 15, 2023. 

In addition, FTB will suspend the mailing of collection notices to affected taxpayers for the next 30 days, beginning January 13, 2023. Claiming Disaster Losses Taxpayers affected by a presidentially declared disaster may claim a deduction for a disaster loss. Taxpayers may claim a disaster loss when filing either an original or amended tax year 2022 tax return. 

When filing their return, taxpayers should write the name of the disaster in blue or black ink at the top of their tax return to alert FTB. If filing electronically, taxpayers should follow the software instructions to enter disaster information. If a taxpayer receives a late filing or payment penalty notice related to the postponement period, they should call the number on the notice to have the penalty abated. 

Additional information and instructions are available in FTB Publication 1034, 2022 Disaster Loss: How to Claim a State Tax Deduction. Disaster victims can receive free copies of their state returns to replace those lost or damaged. To do so, they should use form FTB 3516 and write the name of the disaster in blue or black ink at the top of the request. For a complete list of all disasters declared in California, see the chart on FTB’s disaster loss webpage.

IRS Says the Self-Employed Can Deduct Medicare Premiums.

by Victoria Majors Jones, CPA on 07/17/12

The Internal Revenue Service's Office of Chief Counsel on Friday said that self-employed taxpayers can deduct Medicare premiums in the same way they can deduct health insurance premiums. The letter clarifies a little-noticed change in the IRS position on this. The 2010 Form 1040 instructions and Publication 535 started permitting self-employed taxpayers to take the deduction, but at that time the IRS offered no guidance on the change. The chief counsel's letter states that eligible taxpayers can go back and deduct Medicare premiums for tax years that are still open.  (Source Journal Of Accountancy-July, 2012)

Offering Free Home Visits to the Elderly and Disabled

by Victoria Majors Jones, CPA on 06/29/12

I offer free home visits to the elderly and disabled if the home is in the following zip codes:

92127, 92128, 92129, 92130, 92121, 92075, 92067, 92091

There is no charge for travel time or mileage.  It is FREE to those who need it. (I can also come to your home if you live in another zip code but I will have to charge for the additional travel time and mileage. ) What could me more convenient than a professional confidential consultation right in your home?  

AICPA Tells Congress to Get Moving on New Estate and Gift Tax Law

by Victoria Majors Jones, CPA on 06/23/12

On May 31, 2012 the AICPA told Congress that "The uncertainty of the tax law impedes proper estate planning for taxpayers, and the necessity to revise estate planning documents multiple times places an undue burden on taxpayers and their advisors. In addition, if no Congressional action is taken, on January 1, 2013, the 2001 legislation will sunset, which will create turmoil for gifts to multigenerational trusts to which GST exemption was allocated between 2001 and 2012".

For the full document click here. 

I agree with the AICPA. With such uncertainty in the estate and gift tax law, it is impossible to help clients with any sort of tax planning in this area. Hopefully Congress will pass a law by the end of 2012 or sooner.

IRS Penalty Relief and Expanded Installment Agreements

by Victoria Majors Jones, CPA on 03/07/12

As part of its “Fresh Start” initiative, the IRS announced today penalty relief for unemployed taxpayers and an expanded installment agreement program. (IR-2012-31)

The penalty relief portion of the program applies to the failure-to-pay penalty and is available to two taxpayer classes (and is subject to AGI limits):

  • Taxpayers who have been unemployed for any period of 30 consecutive days or longer at any time in 2011 (or in 2012 up to April 17); and
  • Self-employed individuals who experienced a reduction of 25% or greater in their business income in 2011 relative to 2010.

To obtain penalty relief, a taxpayer must do three things:

  • File the return by April 17, 2012, or obtain an extension and file by October 15, 2012;
  • File Form 1127-A by April 17, 2012, regardless of whether the return is extended; and
  • Pay taxes due by October 15, 2012..

In addition, the IRS has broadened installment agreements by raising the threshold for simple installment agreements from $25,000 to $50,000.

Here is a video explaining more about the program.

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