Tax Relief for Victims of the California Wildfires

The IRS has announced tax relief for individuals and businesses in southern California affected by wildfires and straight-line winds that began on January 7, 2025.

The state of California has also offered taxpayers in Los Angeles County a postponement on filing 2024 tax returns and making tax payments. Click here for an announcement from the Governor’s office.

These taxpayers now have until October 15, 2025, to file various federal individual and business tax returns and make tax payments.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, individuals and households that reside or have a business in Los Angeles County qualify for tax relief. The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the Tax Relief in Disaster Situations page on the IRS website.

Specifics of the Relief

The tax relief postpones various tax filing and payment deadlines that occurred from January 7, 2025, through October 15, 2025. As a result, affected individuals and businesses will have until October 15, 2025, to file returns and pay any taxes that were originally due during this period.

This means that the Oct. 15, 2025, deadline now applies to:

• Individual income tax returns and payments normally due on April 15, 2025.
• Contributions to IRAs and health savings accounts for 2024 for eligible taxpayers.
• Quarterly estimated income tax payments for 2024 normally due on January 15, 2025, and estimated tax payments normally due on April 15, June 16 and September 15, 2025.
• Quarterly payroll and excise tax returns normally due on January 31, April 30 and July 31, 2025.
• Calendar-year partnership and S corporation returns normally due on March 17, 2025.
• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
• Calendar-year tax-exempt organization returns normally due on May 15, 2025.

In addition, penalties for failing to make payroll and excise tax deposits due on or after January 7, 2025, and before January 22, 2025, will be abated as long as the deposits are made by January 22, 2025.

Relief Depends on Your “Address of Record”

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers don’t need to contact the agency to get this relief.

It’s possible an affected taxpayer may not have an IRS address of record located in the disaster area.  For example, this could happen because they moved to the disaster area after filing their last tax return. In these types of unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with taxpayers who live outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at (866) 562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Retirement Plan Relief

Additional relief may be available to affected taxpayers who participate in a retirement plan or IRA. For example, a taxpayer may be eligible to take a special disaster distribution that wouldn’t be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.

We Can Help

The IRS may provide additional disaster relief in the future. Contact us with any tax-related questions about the disaster tax relief and claiming a casualty loss deduction. We’re here to help during this difficult time.