IRS gives LA fire victims tax relief

Individuals and businesses in Southern California affected by wildfires and straight-line winds that began Jan. 7 now have until Oct. 15 to file various federal individual and business returns and make tax payments. 

The Internal Revenue Service said it offers relief to any area designated by the Federal Emergency Management Agency, and this currently includes Los Angeles County. Individuals and households that reside or have a business in this locality qualify for this relief.

The relief postpones various tax filing and payment deadlines that occurred from Jan. 7, 2025, through Oct. 15. Affected individuals and businesses now have until the latter date to file returns and pay any taxes that were originally due during this period.

The October deadline applies to:

• 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 this Jan. 15 and estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.
• Quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31, 2025.
• Calendar-year partnership and S corp returns normally due this March 17.
• Calendar-year corporation and fiduciary returns and payments normally due this April 15.
• Calendar-year tax-exempt organization returns normally due on May 15 this year.

Penalties for failing to make payroll and excise tax deposits due on or after Jan. 7, 2025, and before Jan. 22, 2025, will be abated if the deposits are made by this Jan. 22. 
The Disaster assistance and emergency relief for individuals and businesses IRS page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period.  

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

Disaster area tax preparers with clients located outside the disaster area can choose to use the Bulk Requests from Practitioners for Disaster Relief option, described on IRS.gov. 

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2025 return normally filed next year) or the return for the prior year (2024). Taxpayers have up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) to make the election. For individual taxpayers, this means Oct. 15, 2026.

Taxpayers or practitioners should write the FEMA declaration number — 4856-DR — on any return claiming a loss.