Executive Order Helps Fire-Afflicted Taxpayers

California Governor Gavin Newsom last week issued an executive order designed to provide many kinds of relief to people affected by the ongoing wildfire disasters.

Several sections of his order are focused on taxes, deadlines, relief from penalties, and other issues which you might want to discuss with your tax accountant.

Specifically, the order requires that:

• The Franchise Tax Board, the Board of Equalization, the Department of Tax and Fee Administration, and the Office of Tax Appeals shall use their administrative powers where appropriate to provide those individuals and business impacted by the wildfires with the extensions for filing, audits, billing, notices, assessments, and relief from subsequent penalties and interest.
• The requirement in Revenue and Taxation Code section 20622 that a homeowner file a claim with the Controller by February 10, 2021 is waived as to homeowners in the affected counties. Claims must instead be filed by June 1, 2021. This will allow counties time to reappraise the value of property to account for fire damage.
• The provisions of the Revenue and Taxation Code that apply to the taxes and fees administered by the Department of Tax and Fee Administration, requiring the filing of a statement under penalty of perjury setting forth the facts for a claim for relief as a result of a disaster, are suspended for a period of three months after the due date of the return or payment. This action will quickly provide taxpayers relief from interest and penalties.

Governor Newsom’s Executive Order also extended the prohibition on price gouging in fire-ravaged counties and suspended the time limits on local government and local health department declared emergencies. He also suspended rules on the transportation of debris and other activities associated with emergency clean up.

The text of the Executive Order is available from the State of California.

RINA Accountants & Advisors acknowledges the unprecedented and tragic losses faced by our families, clients, friends, and fellow Californians. We keep you in our thoughts. Please let us know how we can help.