The Internal Revenue Service (IRS), in coordination with the Federal Emergency Management Agency (FEMA), released critical tax relief for the people and business communities affected by the catastrophic wildfires and straight-line winds starting on January 7, 2025, in Southern California.
These relief measures provide the impacted persons and businesses affected by the disaster an ease on their financial burdens in the form of extensions and waivers on the different tax-related deadlines.
Relief Actions
The IRS relief actions permit taxpayers in affected areas an extension to file and pay taxes. The deadline is now extended to October 15, 2025, for individuals and businesses whose tax deadlines would have originally fallen between January 7 and October 15, 2025.
Here’s how the tax relief applies:
- Individual Income Tax Returns: The usual filing and payment deadline of April 15, 2025, is extended to October 15, 2025.
- Contributions to IRA and HSA: Contributions for 2024 can now be made by October 15, 2025, to an individual’s IRA and HSA.
- Estimated Tax Payments: The following payments that otherwise would have been due on January 15, April 15, June 16, and September 16, 2025, are now being accepted by October 15, 2025.
- Quarterly Payroll and Excise Tax Returns: The originally scheduled January 31, April 30, and July 31, 2025,deadlines will be moved to October 15, 2025.
- Business Tax Returns: Extended to October 15, 2025, including partnerships, S corporations due March 17, calendar year corporations, and fiduciaries due April 15, tax-exempt organizations due May 15.
Waiver of Penalties
The IRS also offers penalty relief to taxpayers who missed some tax deposits between January 7 and January 22, 2025. Taxpayers will not be penalized for their late payments if they make the missed payroll and excise tax deposits by January 22, 2025.
Eligible Areas
Currently, the tax relief is available to individuals and businesses in Los Angeles County. FEMA-designated areas may be expanded as the situation unfolds. The IRS will continue to update the list of eligible counties and taxpayers should often check the IRS Tax Relief in Disaster Situations page for the latest information.
Automatic Relief
Taxpayers who reside in the disaster area and whose IRS-registered address is located within the affected area do not need to file for relief. The IRS will automatically apply the filing extensions and penalty waivers to those individuals and businesses.
How to Get More Information
Those who wish to know more about other returns and other payments and taxes actions that are relieved during such a period can visit the Disaster Assistance and Emergency Relief for Individuals and Businesses web page on the official IRS website.
Conclusion
The IRS tax relief efforts are aimed at alleviating much-needed aid to those who have been battered by the latest wildfires and straight-line winds in Southern California. Affected persons and businesses will be given extra time for their tax filing and payments with the extended deadlines and penalty waivers. Taxpayers should tune to updates on changes in the designated areas and any other forms of relief available.
FAQs
Q. What is IRS tax relief to California wildfire victims?
Ans: The Internal Revenue Service recently announced special tax relief measures to the victims of the recent wildfires in California. These include filing deadlines, waiver of penalties, and other forms of assistance to ease their financial burden.
Q. Who qualifies for the IRS tax relief due to California wildfires?
Ans: Relief for those in declared disaster areas due to California wildfires includes people and businesses affected by the wildfire. Visit the IRS website to see which specific areas have been impacted.
Q. How do I file an application with the IRS to obtain relief for my situation due to being a wildfire victim?
Ans: Taxpayers need not apply individually for most relief actions administered by the IRS. Extensions and waivers will automatically be applied by the IRS for affected taxpayers.