The IRS has announced disaster tax relief for individuals and businesses in Southern California impacted by wildfires and straight-line winds beginning January 7, 2025. Taxpayers that have been impacted now have until October 15, 2025, to file various federal tax returns and make payments.
Who Qualifies for Disaster Tax Relief?
This relief applies to areas that have been designated as disaster zones by the Federal Emergency Management Agency (FEMA), which currently includes Los Angeles County. The IRS automatically identifies eligible taxpayers based on their location. However, individuals and businesses outside the disaster area, whose records are located in the affected zone, may also qualify by contacting the IRS at 866-562-5227.
Key Deadlines Extended
The new deadline of October 15, 2025 provides an extended timeline for filing and payment obligations originally due between January 7, 2025, and October 15, 2025. This includes:
- Individual Tax Returns
- 2024 income tax returns and payments normally due April 15, 2025.
- 2024 IRA and HSA contributions.
- Estimated Tax Payments
- Quarterly estimated tax payments typically due on January 15, April 15, June 16, and September 15, 2025.
- Business Tax Deadlines
- Quarterly payroll and excise tax returns due January 31, April 30, and July 31, 2025.
- Calendar-year partnership and S corporation returns due March 17, 2025.
- Calendar-year corporation and fiduciary returns due April 15, 2025.
- Tax-exempt organization returns due May 15, 2025.
- Penalty Abatement
- Penalties for payroll and excise tax deposits due between January 7 and January 22, 2025, will be waived if payments are made by January 22, 2025.
Claiming Disaster-Related Losses
Taxpayers located in federally declared disaster areas are eligible to claim disaster-related losses that are uninsured or not reimbursed. These losses may be deducted on either:
- The 2025 return (filed in 2026).
- An original or amended 2024 return to expedite potential refunds.
When claiming losses, use FEMA disaster declaration number 4856-DR on applicable returns. For details, consult IRS Publication 547 or Form 4684.
Additional Assistance for Affected Taxpayers
- Free Tax Help: Eligible taxpayers can access free assistance through Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE). Locate services at IRS.gov or by calling 800-906-9887.
- Free File Options: Taxpayers with an AGI of $84,000 or less in 2024 can use IRS Free File tools in English and Spanish.
- Military Assistance: MilTax, a Department of Defense program, offers free filing services for federal and state returns.
Special Considerations
- Copies of Tax Returns: Affected taxpayers can request previously filed tax returns without usual fees by submitting Form 4506 or 4506-T, prominently noting the FEMA declaration number, 4856-DR.
- Retirement Accounts: Taxpayers may qualify for disaster-related distributions or hardship withdrawals without the usual 10% early withdrawal penalty, subject to plan-specific rules.
Stay Updated
The IRS may issue further relief as the situation evolves. Affected taxpayers or practitioners can refer to the IRS Disaster Assistance and Emergency Relief page for the latest updates and resources.
For questions or assistance with disaster-related tax matters, reach out to the IRS disaster hotline at 866-562-5227 or visit IRS.gov.
For questions about how this relates to your situation, please reach out to your LSL advisor or contact us today.
