Hello -
I understand that the special storm-related extension is automatic and is an extension to file and pay.
Typically, I owe taxes to IRS/FTB(CA) every April. And TurboTax calculates the interest related penalty for me (because I am not in Safe Harbor -- paid neither 110% of previous year tax nor 90% of taxes owed).
This year again, TurboTax has calculated about 100K worth of taxes owed and couple grand of interest related penalty.
My question is: If I defer the tax payment now and pay on Oct 15 (new deadline), will I incur additional interest related penalty (over and above what is calculated by TT right now). If there will be no interest penalty -- for almost 6 months -- I could choose to invest that money in some CD and generate some interest.
Hope my question is clear.
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I believe if you don't meet either the 110% or 90% safe harbor rule for underpayment penalties and pay the balance due between now and October 16, 2023, you will still be liable for underpayment penalties for the 1st, 2nd and 3rd quarter since only payments due after January 17, 2023 have been delayed.
Based on the IRS and FTB announcements, there should not be any additional interests and penalties accrued after January 17, 2023 as long as the payments due are paid by October 16, 2023, read the IRS press releases linked below.
Bear in mind that the delay does not apply to those residing in the following Calif counties:
Imperial;
Kern;
Lassen;
Modoc;
Plumas;
Shasta; and
Sierra.
Yes, the IRS automatically will provide filing and penalty relief to taxpayers with IRS addresses located in the disaster area.
For more information, please review IRS: May 15 tax deadline extended to Oct. 16 for disaster area taxpayers in California, Alabama and ... and CA Franchise Tax Board Help with California winter storms.
I believe if you don't meet either the 110% or 90% safe harbor rule for underpayment penalties and pay the balance due between now and October 16, 2023, you will still be liable for underpayment penalties for the 1st, 2nd and 3rd quarter since only payments due after January 17, 2023 have been delayed.
Based on the IRS and FTB announcements, there should not be any additional interests and penalties accrued after January 17, 2023 as long as the payments due are paid by October 16, 2023, read the IRS press releases linked below.
Bear in mind that the delay does not apply to those residing in the following Calif counties:
Imperial;
Kern;
Lassen;
Modoc;
Plumas;
Shasta; and
Sierra.
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