LaMalfa, Thompson, Kiley urge IRS to extend tax filing deadline for disaster victims

Yesterday, congressmen Doug LaMalfa, Mike Thompson and Kevin Kiley led a letter to the IRS asking for an extension of tax filing and payment deadlines in all California counties that received a disaster declaration from December 2022 to July 2023.

The congressmen are urging the IRS to utilize their existing policy that allows for the postponement of deadlines of up to one year from the original deadline. As such, tax filings and payments due on Oct. 16, 2023, would be moved to April 2024.

Legislation by LaMalfa and Thompson to exempt all wildfire relief payments from federal income taxes was scheduled to be marked up in the Ways and Means Committee on Wednesday, Oct. 4, but was postponed due to the removal of the Speaker of the House and the requirement to name a Speaker before legislative House work can proceed. This deadline extension postponement will give Fire Victim Trust claimants an extra six months while the bill would hopefully be passed and taxes on their settlement money not enforced.

“Our fire survivors have waited patiently for taxation relief on their settlement money, and I will keep pursuing every avenue available to make sure that financial relief is provided. I, like many of my constituents, am extremely frustrated that the recent events of the House have upended efforts to get this legislation done, and that survivors have been stuck in taxation limbo for so long. This tax filing postponement gives Congress more time to get our bill passed and necessary relief to wildfire survivors,” LaMalfa said.

“Fire survivors have endured so much as a result of devastating wildfires and they should not be taxed on the settlements from the PG&E Fire Victims Trust,” Thompson said.  “Representative LaMalfa and I are working closely with Ways and Means Chairman Jason Smith to ensure that consideration of our bipartisan bill is done as soon as possible. My colleagues and I also urge the IRS to defer tax collection on victims trust fund payments to help to alleviate the stress that many fire survivors are experiencing as we work to enact our legislation into law.”

Read the full letter here.