Our friends, family and clients dealing with the unimaginable loss after the devastation from the ongoing California wildfires need more than our thoughts - they need real help.
This week, the Internal Revenue Service announced tax relief for individuals and businesses in southern California affected by wildfires and straight-line winds that began on Jan. 7, 2025. The agency has given these taxpayers until Oct. 15, 2025, to file various federal individual and business tax returns and make tax payments. Tax relief is important, but victims also need resources to help recover. Tomorrow, we'll highlight the scams associated with relief efforts.
Bottom Line: If you are a victim of the wildfires, the IRS will work with you to meet your tax obligations. For more information, visit https://lnkd.in/eNg6QzTk
What you Need to Know:
- The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA).
- Individuals and households that reside or have a business in Los Angeles County qualify for tax relief.
- The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov.
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.
What to do:
- 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 or practitioners should write the FEMA declaration number — 4856-DR — on any return claiming a loss.
Originally Published on January 15, 2025
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