Takeaways
- The Internal Revenue Service (IRS) has provided broad tax relief to taxpayers in Los Angeles County impacted by the recent winds and wildfires.
- Other counties may be added later.
- California’s Governor Newsom has announced state relief for those impacted.
On January 10, 2025, the IRS in IR-2025, announced tax relief for Southern California individuals and businesses impacted by the wildfires and winds, which began on January 7, 2025.
Impacted taxpayers have until October 15, 2025, to make tax payments and file federal individual and business tax returns. This relief is being provided to those in areas designated by FEMA. Practically speaking, the relief is allowed for individuals and households residing or doing business in Los Angeles County. Other counties later added to the disaster area will also get relief. The list of eligible areas and other resources are located here.
The relief provided applies to the following deadlines falling on or after January 7, 2025, and before October 15, 2025:
- Corporate or passthrough entity returns otherwise due on 3/15/2025 and 4/15/2025.
- Individual income tax returns and payments otherwise due on 4/15/2025.
- Fiduciary tax returns otherwise due on 4/15/2025.
- Tax-exempt organization returns otherwise due on 5/15/2025.
- Quarterly payroll and excise tax returns otherwise due on 1/31/2025, 4/30/2025 and 7/31/2025.
- Quarterly estimated tax payments due on 1/15/2025, 4/15/2025, 6/15/2025 and 9/15/2025.
- Passthrough entity elective tax payments due to California typically due on 3/15/2025 and 6/15/2025.
- 2024 contributions to individual retirement accounts (IRAs) and health savings accounts (HSAs) for eligible taxpayers normally due on 4/15/2025.
Penalties for failing to make payroll and excise tax deposits due on or after January 7, 2025, and before January 21, 2025, will be abated if the deposits are made by January 22, 2025.
California has provided like relief.
Los Angeles County property owners can apply for reduced property tax assessments resulting from decreased property values for lost or damaged properties when the damages exceed $10,000.
The IRS allows deductions for uninsured or unreimbursed disaster-related losses exceeding 10% of adjusted gross income (AGI), with options to claim losses on the taxpayer’s 2024- or 2025-income-tax returns. California mostly conforms with federal guidelines.
The Governor’s news release:
California provides tax relief for those affected by Los Angeles wildfires | Governor of California
The IRS news release:
IRS: California wildfire victims qualify for tax relief; various deadlines postponed to Oct. 15 | Internal Revenue Service
