ECNETNews reports that the Internal Revenue Service (IRS) has initiated crucial tax relief measures for individuals and businesses in southern California grappling with the aftermath of wildfires and severe winds that started on January 7, 2025. Taxpayers within federally designated disaster regions, including Los Angeles County, now have an extended deadline of October 15, 2025, to fulfill various federal tax filing and payment obligations.
Tax Relief Initiatives for Affected Individuals and Businesses
This tax relief encompasses individuals and businesses facing original filing and payment deadlines from January 7 to October 15, 2025. The key extended deadlines include:
- Individual income tax returns and payments that are usually due on April 15, 2025.
- Contributions to IRAs and health savings accounts for the tax year 2024.
- Quarterly estimated tax payments typically 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 corporation returns due on March 17, 2025.
- Calendar-year corporation and fiduciary returns due on April 15, 2025.
- Tax-exempt organization returns due on May 15, 2025.
Additionally, penalties for overdue payroll and excise tax deposits scheduled between January 7 and January 22, 2025, will be waived if deposits are made by January 22.
The IRS will automatically apply filing and penalty relief for taxpayers residing in the disaster area, meaning affected individuals do not need to reach out to the IRS to access this support.
Taxpayers who are outside the disaster area but whose records are kept within it can request relief by contacting the IRS at 866-562-5227. Workers involved in relief efforts affiliated with recognized organizations may also be eligible for additional relief.
Individuals facing uninsured or unreimbursed disaster-related losses have the choice to declare these losses either on their 2025 tax return (due next year) or their 2024 tax return. The deadline for individual taxpayers to make this choice has been extended to October 15, 2026. Claimants must include the FEMA declaration number, 4856-DR, on their returns.
Qualified disaster relief payments for personal, family, or housing expenses will not be included in gross income. More options are available for taxpayers enrolled in retirement plans, including unique disaster distributions exempt from the 10% early withdrawal tax and the possibility to spread income over three years.
As the situation evolves, the IRS may roll out further disaster relief initiatives. A detailed list of eligible areas and additional information can be found on the IRS Tax Relief in Disaster Situations page.
Taxpayers receiving notices about late filing or payment penalties for eligible periods are advised to contact the number provided on the notice for potential penalty abatement. For further insights into disaster-related tax relief, taxpayers can reference Publication 547 and Publication 525.
