On January 7, 2025, areas in and around Los Angeles County were affected by a series of catastrophic wildfires fueled by straight-line winds. In response, the White House issued a Major Disaster Declaration on January 8, 2025. Following this, on January 10, 2025, the Internal Revenue Service (IRS) announced that individuals and households residing in or doing business in Los Angeles County would qualify for tax relief.
Postponement of Payment and Filing Deadlines
The stated tax relief includes the postponement of various tax filing and payment deadlines scheduled to occur between January 7, 2025, and October 15, 2025. Affected taxpayers in Los Angeles County will have until October 15th, 2025 to meet these obligations. The IRS has specifically listed the following examples of affected deadlines:
- Individual income tax returns and payments normally due on April 15, 2025.
- 2024 contributions to IRAs and health savings accounts for eligible taxpayers.
- 2024 quarterly estimated income tax payments 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.
Additionally, any penalties for failing to make payroll and excise tax deposits due between January 7 and January 22, 2025, will be waived if the deposits are made by January 22, 2025.
Qualifying for Tax Relief
The Internal Revenue Service claims that they will automatically provide tax relief to taxpayers with official addresses within Los Angeles County. Taxpayers who have their primary residence or business in the affected area, but an address of record outside of the area, may receive late filing or payment notices. In this case, taxpayers will need to contact the number listed on the notice to request the abatement of penalties.
Additional Resources and Tax Relief
Taxpayers suffering a loss due to a federally declared disaster such as the January 7, 2025 California wildfires are eligible to claim a casualty loss deduction on uninsured or unreimbursed disaster-related losses. Losses may be claimed by individuals or businesses either the year of the disaster or the preceding year. This means that calendar year taxpayers affected by the California wildfires will be able to claim these losses on either their 2024 or 2025 tax returns. Further information on disaster losses can be found in IRS 2023 Publication 547.
Grants or other qualified disaster relief payments used by affected taxpayers for reasonable and necessary personal, family, living, or funeral expenses, as well as expenses incurred in the rehabilitation or repair of their home or its contents, are generally excluded from taxable gross income.
For further reading, please see IR-2025-10 and for disaster relief, please visit www.DisasterAssistance.gov
