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Victims of severe winter storms, flooding, landslides and mudslides in California beginning March 9, 2023, now have until Oct. 16, 2023, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.
Following the disaster declaration issued by the Federal Emergency Management Agency, individuals and households affected by severe winter storms, flooding, landslides and mudslides that reside or have a business in these 42 counties qualify for tax relief.
Alpine
Fresno
Lake
Mono
Plumas
San Mateo
Sonoma
Amador
Glenn
Los Angeles
Monterey
Sacramento
San Luis Obisco
Stanislas
Butte
Humboldt
Madera
Napa
San Benito
Santa Barbara 
Trinity 
Calaveras
Imperial
Mariposa
Nevada
San Bernardino
Santa Clara
Tulare 
Del Norte
Inyo Kern
Mendocino
Orange
San Francisco
Santa Cruz
Tuolumne 
El Dorado
Kings
Merced
Placer
San Joaquin
Sierra
Yuba Counties
 



The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after March 9, 2023, and before Oct. 16, 2023, are granted additional time to file through Oct. 16, 2023. As a result, affected individuals and businesses will have until Oct. 16 to file returns and pay any taxes that were originally due during this period. This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18. Among other things, this means that eligible taxpayers will have until Oct. 16 to make 2022 contributions to their IRAs and health savings accounts.
The Oct. 16, 2023, deadline also applies to any payment normally due during this period, including quarterly estimated tax payments, quarterly payroll and excise tax returns. In addition, penalties on payroll and excise tax deposits due on or after March 9, 2023, and before March 24, 2023, will be abated as long as the tax deposits are made by March 24, 2023.

Contact MKG Tax Consultants for a free extension filing 
Office (559) 412-7248
https://mkgtaxconsultants.com/about-us/contact-us/

Insured Cash Sweep Program: FDIC Insurance on Deposits up to $2,000,000
Keeping your money secure is our top priority at MKG Enterprises Corp banking technology, and we’re excited to provide added protection to our customers.
What is an insured cash sweep program?
It’s a program offered by FDIC-insured banks. Deposits that exceed FDIC insurance coverage are swept into one or more FDIC-insured banks as a way to insure the entirety of a depositor’s balance. Insured cash sweep programs exist to protect depositors and their money by maximizing FDIC insurance and by limiting deposit exposure across a single bank.
MKG Enterprises Corp is a banking technology company and does not directly handle customer deposits; we use chartered partner banks to provide banking services.

https://mkgtaxconsultants.com/banking-as-a-service/

A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency.
As more people withdraw their funds, the probability of default increases, prompting more people to withdraw their deposits. In extreme cases, the bank's reserves may not be sufficient to cover the withdrawals.
Silvergate Bank's quick demise through a self-liquidation is prompting a closer look at the many red flags that ensnared the California bank even before the collapse of cryptocurrency exchange FTX late last year forced a run on deposits.
The state-chartered Silvergate's voluntary liquidation, announced Wednesday, will allow the La Jolla, Calif.,-based bank to wind down its operations, sell remaining assets and pay off its depositors. The process is being monitored by California's Department of Financial Protection and Innovation.
Among the many lessons to be learned from Silvergate's collapse is that a liquidity crunch can quickly engulf a bank, particularly if management makes the wrong bet on interest rates, experts said. Silvergate's monoline business model was concentrated in the crypto industry, where the risks and correlated aftershocks were not fully understood.
"They didn't think deposits would dissipate so quickly in an environment where the securities portfolio was deeply underwater," said Todd H. Baker, senior fellow at the Richman Center for Business, Law and Public Policy at Columbia Business School and Columbia Law School. 
Silvergate's management "underestimated how much they were exposed in multiple ways to interest rate rises, and they probably underestimated how aggressive the regulators would be trying to essentially get a handle on their overall situation," Baker added. 
Silvergate had an unusual business model, holding billions in zero-interest deposits from crypto exchanges. Both FTX and Alameda Research had accounts at Silvergate. It also operated the Silvergate Exchange Network cryptocurrency trading platform that served as a payments network for crypto companies to swap fiat currencies with each other. When the bank shut its network last week, crypto depositors fled en masse.
The deposit and industry concentration, interest rate squeeze and lack of any other meaningful business were self-inflicted wounds.

Silicon Valley Bank failed on Friday March 10, 2023 following a run on deposits, after its parent company’s share price crashed a record 60% on Thursday.
Trading of SVB Financial Group’s stock SIVB had been halted early Friday, after the shares plunged again in premarket trading. Treasury Secretary Janet Yellen said SVB was one of a few banks she was “monitoring very carefully.” Reaction poured in from several analysts who discussed the bank’s liquidity risk.
California regulators closed Silicon Valley Bank and handed the wreckage over to the Federal Deposit Insurance Corp. later on Friday. Signature Bank of New York, (the main subsidiary of Signature Bank Corp. SBNY, was closed by state regulators and taken over by the FDIC on Sunday.
Below is the same list of 10 banks we highlighted on Thursday that showed similar red flags to those shown by SVB Financial through the fourth quarter. This time, we show how much they reported in unrealized losses on available-for-sale, or AFS, securities — an item that played an important role in SVB’s crisis.
Below that is a screen of U.S. banks with at least $10 billion in total assets, showing those that appeared to have the greatest exposure to unrealized securities losses on AFS securities, as a percentage of total capital, as of Dec. 31.
The latest industry developments include an emergency lending facility set up by federal regulators to help banks avoid selling securities for losses if they need to raise cash to cover deposit outflows. The regulators have also said all depositors of Silicon Valley Bank and the failed Signature Bank of New York would have access to their money — even uninsured deposit balances. First Republic Bank FRC (listed below) announced it had secured funding from the Federal Reserve and JPMorgan Chase & Co. JPM.
Banks are now able to pledge

Employer Retention Credit Warning
Many businesses have received phone calls and emails from third-party companies marketing ERC refunds. The ERC is an inherently risky tax credit that will lead to a high likelihood of an audit over the next five years.
The Internal Revenue Service has warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit.
These third parties often charge large upfront fees or a fee that is contingent on the amount of the refund and may not inform taxpayers that wage deductions claimed on the business' federal income tax return must be reduced by the amount of the credit.
If the business filed an income tax return deducting qualified wages before it filed an employment tax return claiming the credit, the business should file an amended income tax return to correct any overstated wage deduction.
Businesses are encouraged to be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true. Taxpayers are always responsible for the information reported on their tax returns. Improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest.
 
No matter who filed the amended 941 form the business is still responsible for the information reported. 
 

As a reminder, only recovery startup businesses are eligible for the ERC in the fourth quarter of 2021. Additionally, for any quarter, eligible employers cannot claim the ERC on wages that were reported as payroll costs in obtaining PPP loan forgiveness or that were used to claim certain other tax credits.

If you claimed the Employee Retention Credit be prepared for an audit.

Contact us Today! Our Enrolled Agents have extensive IRS Audit Representation.