In the wake of the devastating wildfires that continue to burn across Southern California, the Internal Revenue Service (IRS) and the State of California have announced extended tax deadlines and tax filing relief for those affected. This measure aims to alleviate some of the burdens individuals and business owners face recovering from these natural disasters.
Currently, residents and business owners in Los Angeles County are among those included in this relief, as identified by the Federal Emergency Management Agency (FEMA). Here’s what you need to know about these tax extensions and how they apply to you.
Tax Filings and Payment Deadline Extensions
In coordination with California’s Franchise Tax Board, the IRS has provided a substantial extension of tax deadlines for those impacted by the California wildfires. Filings and payments originally due between January 7, 2025, and October 15, 2025, can now be postponed until October 15, 2025. This extension allows individuals and businesses in affected areas more time to manage their tax obligations while they recover.
Here’s a breakdown of what this relief covers:
- Individual Income Tax Returns – Filing and payment deadlines that typically fall on April 15, 2025, are extended.
- 2025 IRA and HSA Contributions – Contributions to Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) are included in the relief.
- 2024/2025 Quarterly Estimated Taxes – 2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and 2025 estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.
- Quarterly Payroll and Excise Taxes – Payment deadlines for affected quarters, scheduled for January 31, April 30 and July 31, 2025, are extended.
- Calendar-Year S-Corporation & Partnership Returns – Normally due March 17, 2025, have been postponed.
- Calendar-Year Corporate & Fiduciary Returns and Payments – Calendar-year returns typically due April 15, 2025, are included in the relief.
- Tax-Exempt Organization Returns – Filing deadlines for calendar-year organizations due May 15, 2025, are extended until October 15, 2025.
Additionally, penalties for failing to make payroll and excise tax deposits on or after January 7 and before January 22, 2025, will be waived for payments made by the January 22, 2025, deadline.
Do You Need to File for Relief?
The good news? Affected taxpayers generally don’t need to take any action to receive the disaster relief extension. If your address is on file with the IRS and falls within the qualifying areas listed by FEMA, the extended deadlines will apply automatically. There’s no need to submit additional paperwork or contact the IRS.
However, suppose you’ve recently moved to an affected area, and your current address hasn’t yet been updated by the IRS. In that case, you must notify them as soon as possible to avoid potential penalties. Similarly, taxpayers located outside these specific areas but qualifying for disaster relief (such as workers assisting with relief efforts through recognized government or charitable organizations) must call the IRS at 888-562-5227 to ensure the extension applies.
Additional Federal Tax Relief
California wildfire victims may also qualify for additional forms of tax relief. If you’ve suffered uninsured or underinsured disaster-related losses within a federally declared disaster area, you can choose to claim those losses on your tax return.
You can claim losses on your tax return for the year the disaster occurred (in this instance, 2025) or the previous year (2024). Determining the best year to claim these losses depends on your unique tax situation. Consulting a professional can help maximize your potential benefit.
State Property Tax Extension
To further assist communities recovering from the devastating wildfires, Governor Gavin Newsom has issued an executive order extending state property tax deadlines by one year for affected Los Angeles areas. This order provides critical relief for property owners, ensuring they have additional time to manage their tax responsibilities without the added burden of penalties and interest.
Key details of the executive order include:
- Suspension of specific state tax laws imposing penalties, costs, and interest on late property tax payments due in 2025, extended through April 10, 2026.
- Suspension of additional state tax laws imposing requirements to file various property tax statements.
- Applicable to properties located in the following zip codes:
90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, 93536.
Calamity Relief
Property owners whose properties were damaged or destroyed in the fires may qualify for disaster relief, including reassessments of property value and corresponding property tax adjustments based on its current state. Key considerations include:
- Filing Timeline: Claims must be submitted to the Los Angeles Assessor’s office within 12 months from the date of damage or destruction.
- Suspension of Penalties & Interest: Property owners can request suspension of penalties and interest for up to four years by filing a Penalty Cancellation Form with the Los Angeles County Treasurer and Tax Collector.
The Bottom Line
Recovering from the impacts of a wildfire is an arduous process. The IRS and California’s Franchise Tax Board are working to ease some of the obstacles through extended deadlines and other forms of relief.
For more details on other returns, payments, and tax-related actions qualifying for relief and extensions, visit the Disaster Assistance and Emergency Relief for Individuals and Businesses page. Check FEMA’s website for the most up to date list of qualifying areas.
Navigating disaster-related tax relief can be complex, but you don’t have to go it alone. For further guidance and how to take full advantage of these extensions and relief measures, consult an LTax advisor or call (561) 453-1441. We're here to help you navigate the application process and secure the relief you’re entitled to while rebuilding and moving forward.
LEGAL OR TAX: The information herein is not legal, such as trust or estate planning, advice, or tax advice. Any such information is provided for illustrative purposes only and must not be relied upon without the benefit of the advice of your lawyer and/or tax professional. Lido specifically disclaims any liability from any reliance on such information. Lido is not a legal service provider or tax professional and does not offer legal or tax advice. Should you desire to obtain tax or legal services or advice, you must enter into your own, independent engagement agreement with a licensed attorney or tax professional.