Confusing IRS Message Causes Problems In California

A report reveals that many California residents have received notifications from the Internal Revenue Service (IRS) demanding immediate payment of any outstanding amounts from their federal tax returns for the year 2022. Some people who got the notifications complained that they weren’t totally clear. 

The IRS has given millions of Californians an extra year to submit their 2022 taxes because of the state’s recent harsh weather.

When a person has an outstanding tax amount, the IRS will send them a Notice CP14.  However, in this situation, many California taxpayers were notified through Notice CP14 that they were required to pay the outstanding debt in full within 21 days. 

The 21-day period is standard in CP14 notices. Even though the IRS had already granted an extension to submit 2022 federal tax returns to taxpayers in the majority of counties in California and many other states due to extreme weather damages, the letters nonetheless generated considerable confusion and alarm.

Recently, the Internal Revenue Service tweeted that a tax extension extends to much of the state of California.  The agency also issued a formal announcement on its website expressing regret for the inconvenience. 

Reports show that taxpayers in California who were affected by natural catastrophes last year were granted two extensions from the Internal Revenue Service. The original IRS tax deadline was May 31, and its most recent extension pushed it to October 16, 2023. That gives some residents of the Golden State an additional four months to submit their federal tax forms.

If the Internal Revenue Service pushes out the tax filing deadline, related deadlines will also be delayed.

People in storm-affected regions of California may now contribute to their individual retirement accounts (IRAs) and health savings accounts (HSAs) until the end of the year. Those payments now have until October 16th, 2023, to be made. Before submitting your taxes, be sure you have enough money to contribute to your IRA or HSA according to the established restrictions.