Positive Impacts of All This Rain and Snow

As we sit here in the Santa Clarita Valley and in fact all of Southern California, we have seen more rain than we have for years. In fact, the significant impacts are not only local, but throughout all of California. The mountains and hillsides have seen most of the impacts with Northern California seeing levees break and rivers flood. There are scenes of water rescues and snow past the 2^nd story of mountain homes. Some communities have been cut off and flooded. As of March 16 the Snow Pack is rivaling or exceeding the record snowpacks of 1982-83 and is up between 173 to 258% of the annual average for this time of year. This could further increase since it appears there is more rain and snowfall expected in the future. One of the concerns is what happens as the storms, like the one the week of March 14 are warmer and could lead to an early melting of the snow pact and potential new flooding.

One of the questions we are facing is does this water bounty end the drought we have experienced in the past several years. The answer is maybe, but it is important to note that the Colorado River basin is not enjoying the same abundance of rain and snow and there is currently a conflict between California and all of the other states who take water from this basin which may severely reduce the water California takes and which much of Southern California depends on.

Planning ahead has not been one of the trademarks of California Government in recent years. The voters have passed water bonds which included water storage which have still not been completed. There continues to be conflict between using excess rain to immediately recharge our ground water basins and the need for water to travel to the ocean especially the complex San Joaquin Delta system. Hopefully this abundance this year will spur the effort to store water when we have it, including ground water storage, while continuing to conserve and not waste this precious resources.

However, just as importantly as to those who have had actual damages occurred to their businesses or property, there is a relief which most of you can take advantage of. After the initial series of storms the IRS and Franchise Tax Board (FTB) agreed to extend the filing deadlines for individual and business tax returns until May 15, 2023. However, after the continued series of significant storms this was extended to October 16, 2023. These changes will affect all of California except for the Counties of Imperial, Kern, Lassen, Modoc, Plumas, Shasta and Sierra. Here is a summary of what it means to you:

IRS

• Extension for individuals and businesses to file returns and pay taxes until October 16, 2023 with no penalty for late filing.
• Taxpayers paying quarterly estimated tax payments normally due on January 17 and April 18, 2023 can now pay them when they file their 2022 return no later than October 16.
• Quarterly payroll and excise tax returns due on January 31, 2023 and April 20, 2023 also have the deadline extended to October 16.
• If you have suffered a casualty loss you can claim that loss on the tax return for the year it occurred, or the previous tax year.
• If a taxpayer receives notices of penalties which should not be imposed, or have any questions related to the details of these extensions they can call the IRS disaster hotline at 866-562-5227.

FTB

• Individual and business tax returns are extended until October 16, 2023.
• Quarterly Estimated tax payments due throughout 2023 are all extended until October 16, 2023.
• Pass through entity (PTE) elective tax payments extended until October 16, 2023.
• If you have suffered a casualty loss you can claim that loss and you can find the details in FTB Publication 1034.

You can obtain additional information from the FTB by going to https://www.ftb.ca.gov/file/when-to-file/Emergency-tax-relief.html

When reviewing how the actions by the IRS and FTB benefit and affect you please consult your accountant and tax advisor.