A ball of confusion — that's what the IRS is today, at least for many Californians.
The Internal Revenue Service announced in early January that taxpayers in disaster-stricken counties would have more time to file their returns and pay their taxes. Since then, it has amended its stance multiple times, adding more counties and extending the payment deadlines — and then seemingly moving up the deadlines and canceling the relief.
The latest hiccup: Taxpayers who filed their returns early but delayed paying what they owed are getting "notice and demand" letters from the IRS, telling them they face penalties and interest charges if they don't pay within 21 days. Only if they read all the way through the four-page letter will they find a paragraph at the end telling them to disregard everything that came before it if they live in an area covered by a disaster declaration — which includes 57 of the state's 58 counties.
