The Inner Income Service (IRS) has introduced important tax aid measures for people and companies in southern California affected by the wildfires and straight-line winds that started on January 7, 2025. Taxpayers in federally designated catastrophe areas, at the moment together with Los Angeles County, may have till October 15, 2025, to fulfill numerous federal tax submitting and fee deadlines.
Aid for Affected Taxpayers
The tax aid applies to people and companies with submitting and fee deadlines initially falling between January 7 and October 15, 2025. The prolonged deadline covers:
- Particular person revenue tax returns and funds usually due on April 15, 2025.
- Contributions to IRAs and well being financial savings accounts for 2024.
- Quarterly estimated tax funds usually due on January 15, April 15, June 16, and September 15, 2025.
- Quarterly payroll and excise tax returns due on January 31, April 30, and July 31, 2025.
- Calendar-year partnership and S company returns due on March 17, 2025.
- Calendar-year company and fiduciary returns due on April 15, 2025.
- Tax-exempt group returns due on Could 15, 2025.
Penalties for failing to make payroll and excise tax deposits due between January 7 and January 22, 2025, might be abated, supplied the deposits are made by January 22.
The IRS will robotically apply submitting and penalty aid to taxpayers with addresses on report within the catastrophe space. Affected people don’t have to contact the IRS to obtain this profit.
For taxpayers outdoors the catastrophe space however whose data are situated inside it, the IRS gives aid upon request. These people or companies ought to contact the IRS at 866-562-5227. Employees aiding in aid efforts and affiliated with acknowledged organizations may additionally qualify for aid.
Taxpayers who skilled uninsured or unreimbursed disaster-related losses have the choice to say these losses on both their 2025 tax return (filed subsequent yr) or their 2024 tax return. For particular person taxpayers, the prolonged deadline to make this election is October 15, 2026. Filers should embrace the FEMA declaration quantity, 4856-DR, on their returns.
Certified catastrophe aid funds, together with these for private, household, or housing bills, are excluded from gross revenue. Further aid is on the market for taxpayers collaborating in retirement plans, resembling particular catastrophe distributions exempt from the ten% early distribution tax and choices to unfold revenue over three years.
The IRS has indicated that additional catastrophe aid could also be introduced because the state of affairs develops. A whole checklist of eligible localities and extra info may be discovered on the IRS’s Tax Aid in Catastrophe Conditions web page.
Taxpayers who obtain late submitting or fee penalty notices for eligible durations ought to contact the quantity on the discover to have penalties abated. For extra particulars on disaster-related tax aid, discuss with Publication 547, Casualties, Disasters, and Thefts, and Publication 525, Taxable and Nontaxable Earnings.