On January 8, 2025, President Biden signed a major disaster declaration for the wildfires impacting communities in Los Angeles County. Following this, the IRS announced on January 10, 2025 (CA-2025-01) that individuals and businesses residing in Los Angeles County are eligible for tax relief. Currently, no other counties qualify for relief, although additional areas may be designated in the future.
As of January 11, 2025, California has confirmed its conformity with the federal tax relief provisions, extending deadlines for state filings and payments to align with federal guidelines.
Taxpayers in the designated counties with deadlines falling on or after January 7, 2025, are granted additional time through October 15, 2025 to file returns and pay any taxes that were originally due during this period. This relief includes but is not limited to:
Key Details of the Relief:
Extended Deadlines:
Taxpayers in the designated disaster areas with deadlines falling on or after January 7, 2025, now have until October 15, 2025, to file returns and pay taxes originally due during this period.
Filing Extensions:
- Individual income tax returns and tax payments: Normally due April 15, 2025, now due October 15, 2025.
- Calendar-year Partnership and S-Corporation returns: Normally due March 17, 2025, now due October 15, 2025.
- Calendar-year Corporation and fiduciary returns: Normally due April 15, 2025, now due October 15, 2025.
- Calendar-year tax-exempt organization returns: Normally due May 15, 2025, now due October 15, 2025.
Payment and Contribution Extensions:
- 2024 Contributions to IRAs and health savings accounts: Normally due April 15, 2025, now due October 15, 2025.
- 2025 Quarterly estimated tax payments: Normally due January 15, 2025, April 15, 2025, June 16, 2025, and September 15, 2025, now due October 15, 2025.
- Quarterly payroll and excise tax returns: Normally due January 31, and April 30, 2024, and July 31, 2025 now due October 15, 2025.
- Payroll and excise tax deposits: Normally due between January 7 and January 22, 2025, now due January 22, 2025.
Automatic Relief for Affected Taxpayers
Relief is automatically granted to taxpayers with an IRS address of record in Los Angeles County. Taxpayers outside the designated area who are affected (e.g. due to damaged records or affected tax preparers) must request relief directly from the IRS.
Claiming a Disaster Loss
Taxpayers with uninsured or unreimbursed disaster-related losses have flexibility when claiming these losses. They may choose to claim them on:
- Their 2024 tax return, or
- Their 2025 tax return (the year of the disaster)
When claiming losses, taxpayers must reference FEMA declaration number 4856-DR on their returns.
Additional Relief Measures
- Qualified disaster relief payments: Excluded from gross income
- Retirement plan and IRA distributions:
- Disaster distributions are exempt from the 10% early distribution tax.
- Option to spread income from distributions over three years.
- Eligibility for hardship withdrawals.
Other Extension Relief:
Sales and Use Tax Extensions:
Businesses affected by the wildfires are eligible for an extension of up to three months to file and pay sales and use taxes or fees with the California Department of Tax and Fee Administration (CDTFA).
This relief is NOT automatic, and requests for this extension must be submitted directly to the CDTFA. For more information, visit the CDTFA’s Emergency Tax Relief.
State Payroll Tax Extensions:
Employers in Los Angeles County can request up to a 60-day extension to file state payroll reports or deposit state payroll taxes without penalties or interest.
This relief is NOT automatic. To qualify, employers must submit a written request to the Employment Development Department (EDD) within two months of the original payment or return due date. For more details, visit the EDD’s Emergency and Disaster Assistance for Employers.
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