The recent wildfires in Los Angeles County have caused significant damage, affecting thousands of residents and businesses. The fires, which began on January 7, 2025, have led to the destruction of homes, businesses, and infrastructure, prompting widespread evacuations and emergency responses.
In response to this devastation, the Internal Revenue Service (IRS) announced tax relief for affected individuals and businesses on January 10, 2025. Currently, individuals and businesses that reside or have a business in Los Angeles County qualify for this tax relief. However, the same relief will be extended to other counties added later to the disaster area. For the latest list of eligible localities, please visit the IRS website, Tax relief in disaster situations | Internal Revenue Service.
Federal Filing and Payment Relief
Various tax filing and payment deadlines that occur from January 7, 2025 through October 15, 2025 are postponed to October 15, 2025. This means that affected individuals will have until October 15, 2025, to file returns and pay any taxes that were originally due during this period.
This includes the following filing and payments:
- Individual income tax returns and payments normally due on April 15, 2025;
- 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;
- 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;
- Quarterly payroll and excise tax returns normally due on January 31, April 30, and July 31, 2025; and
- 2024 contributions to IRAs and health savings accounts for eligible taxpayers.
Who Qualifies for the Relief?
Individuals and businesses will automatically qualify for the relief if their addresses on the most recently filed tax returns are located in the disaster area. Taxpayers who recently moved into the disaster area should call the IRS upon receiving a penalty notice to have it abated.
Taxpayers living outside the disaster area but whose records necessary for filing are located in the disaster area should contact the IRS at 866-562-5227 to obtain the tax relief.
Tax preparers located in the disaster area with clients located outside the area can use the bulk requests from practitioners for disaster relief option. For more information, visit the IRS website at Bulk requests from practitioners for disaster relief | Internal Revenue Service.
Federal Penalty Abatement
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 if the deposits are made by January 22, 2025.
California Relief
California Governor Gavin Newsom issued a State of Emergency in Los Angeles and Ventura Counties, along with an executive order (N-2-25) waiving the one-week waiting period for workers eligible for regular unemployment benefits and affected by the fires, including the Palisades, Eaton, Hurst, Woodley, and Lidia fires.
California Franchise Tax Board (FTB)
In line with the federal extension, taxpayers in Los Angeles County will have until October 15, 2025, to file their California tax returns for 2024 income and make any tax payments originally due between January 7, 2025 and October 15, 2025.
This includes the following filing and payments:
- Individuals with tax returns and payments normally due on April 15, 2025;
- Quarterly estimated tax payments normally due on January 15, April 15, June 15, and September 15, 2025;
- Business entities with corporate or pass-through entity tax returns normally due on March 15 and April 15, 2025;
- Pass-through entity (PTE) elective tax payments normally due on March 15 and June 15, 2025; and
- Tax-exempt organization returns normally due on May 15, 2025.
California Employment Development Department (EDD)
Employers in Los Angeles and Ventura Counties directly impacted by the wildfires can request up to a 60-day extension to file their state payroll reports or deposit payroll taxes without penalties or interest. To obtain the extension, employers must send a written request to EDD within two months of an original payment or return due date.
California Department of Tax and Fee Administration (CDTFA)
The CDTFA has automatically extended the tax filing deadline for three months for taxpayers within Los Angeles County. It will also continue to offer relief and extensions to those impacted beyond Los Angeles County upon submission of a relief request to the CDTFA.
The disaster relief includes:
- Extensions to file returns: CDTFA returns and payments due on or before January 31, 2025, are automatically extended to April 30, 2025, for Los Angeles County taxpayers whose 2024 third quarter return owed less than $1 million in tax. This includes sales and use tax, as well as most other programs administered by CDTFA. For a list of qualified tax programs, please visit the CDTFA website at State of Emergency Tax Relief. Annual licensing fees under the Cigarette and Tobacco Products Licensing Act and returns due under the International Fuel Tax Agreement are not extended.
- Additional relief from interest and penalties: Impacted business owners not subject to the automatic extension or who require additional relief are encouraged to contact CDTFA for assistance. This includes relief from interest and penalties for those unable to file their returns and pay taxes and fees when due, including Los Angeles and Ventura counties affected by the fire and windstorms in January of 2025.
For taxpayers not subject to the automatic extension, the following steps are required to request a filing extension or relief from interest and penalties:
- You will need your username and password to log into your account. If you do not have a username, you can create one through our online services webpage by clicking on “Sign Up Now”.
- To apply, log in on the CDTFA online services webpage with your username and password and then select your account. Under the "I want to" column, select "More" then select "Submit a Relief Request."
- You will receive a confirmation number upon submission of your request. To review your submitted relief request, log in with your username and password, select your account then select the " Submissions tab.
Authors: Yeonhee Oh | [email protected] and Lynn Mucenski-Keck, Principal and National Lead, Federal Tax Policy | [email protected]
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For more information on this topic, please reach out to Withum’s Tax Services Team.
