Title: Tax Relief for California Wildfire Victims by IRS and FTB
The Internal Revenue Service (IRS) has granted tax relief to individuals and businesses in southern California impacted by the wildfires that started on January 7, 2025. In alignment, California's Franchise Tax Board provides similar relief. As a result, affected taxpayers now have until October 15, 2025, to file various individual and business tax returns and make relevant tax payments.
This tax relief applies to any area designated by the Federal Emergency Management Agency (FEMA), making Los Angeles County residents and businesses eligible for this aid. Additional counties may be included in the disaster area as time progresses, with details available on the Tax relief in disaster situations page on IRS.gov.
During the postponement period, which spans January 7, 2025, through October 15, 2025, various tax filing and payment deadlines are extended. This enables individuals and businesses to file returns and pay taxes due during this period until October 15, 2025.
Some examples of these postponed deadlines include individual income tax returns and payments, 2024 IRA and health savings account contributions, 2024 quarterly estimated income tax payments, and several types of business tax returns and payments.
Furthermore, the IRS waives penalties for failing to make timely payroll and excise tax deposits between January 7, 2025, and January 22, 2025. However, these deposits must be made by January 22, 2025, to qualify for this relief.
Any taxpayer with an IRS address of record in the disaster area receives automatic filing and penalty relief. Those affected taxpayers residing outside the disaster area must contact the IRS at 866-562-5227 to have penalties abated.
Individuals and businesses in a federally declared disaster area are granted the option to claim uninsured or unreimbursed disaster-related losses on either the return for the year the loss occurred (2025) or the return for the prior year (2024). Qualified disaster relief payments are generally excluded from gross income, following the guidelines outlined in IRS Publication 525.
[1] Disaster assistance and emergency relief for individuals and businesses - IRS
[2] Tax relief in disaster situations - IRS.gov
[3] California Franchise Tax Board tax extension for Los Angeles County businesses - SimplyTax
[4] Sales and use tax filing deadline extension for Los Angeles County – State of California Board of Equalization
- Affected taxpayers in southern California, due to the wildfires, now have an extended deadline for their IRS tax filings until October 15, 2025.
- The IRS tax penalties for late tax returns and payments in Pacific Palisades, impacted by the la wildfires, have been waived during the relief period.
- California's Franchise Tax Board, like the IRS, provides relief for Los Angeles County businesses, allowing them to file their tax returns with the California FTB until October 15, 2025.
- Taxpayers in the FEMA-designated areas impacted by the Los angeles fires are exempt from IRS audits during the tax relief period, providing temporary relief for their tax return processes.
