The Internal Revenue Service (IRS) is stepping up to assist individuals and businesses impacted by the devastating wildfires and straight-line winds that began on January 7, 2025, in Southern California.
In partnership with the Federal Emergency Management Agency (FEMA), the IRS has announced extended tax relief measures for affected taxpayers in Los Angeles County and potentially other disaster-designated areas.
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Relief
The IRS relief allows taxpayers to defer filing various tax returns and payments until October 15, 2025. This extension applies to individuals and businesses whose deadlines would have originally fallen between January 7 and October 15, 2025.
Here’s what this means for affected taxpayers:
- Individual Income Tax Returns: The filing and payment deadline, typically April 15, is extended to October 15, 2025.
- IRA and Health Savings Account Contributions: Taxpayers now have until October 15 to make 2024 contributions to Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs).
- Estimated Tax Payments: Payments that would have been due on January 15, April 15, June 16, and September 16, 2025, are now due by October 15.
- Quarterly Payroll and Excise Tax Returns: Deadlines on January 31, April 30, and July 31, 2025, are extended to October 15.
- Business Tax Returns: Deadlines for partnerships, S corporations (March 17), calendar-year corporations, fiduciaries (April 15), and tax-exempt organizations (May 15) are all extended to October 15.
Penalty Waivers
The IRS will waive penalties for failing to make payroll and excise tax deposits due between January 7 and January 22, 2025, provided these deposits are made by January 22, 2025.
Eligible Areas
Currently, the tax relief is available to individuals and businesses in Los Angeles County. FEMA-designated areas may expand, and the IRS will update the list of eligible counties accordingly. The most up-to-date information can be found on the IRS Tax Relief in Disaster Situations page.
Automatic Relief
Affected taxpayers with an IRS-registered address in the disaster area do not need to apply for relief. The IRS automatically provides filing and penalty waivers to eligible individuals and businesses.
Additional Information
For details on other returns, payments, and tax-related actions that qualify during the relief period, taxpayers can visit the Disaster Assistance and Emergency Relief for Individuals and Businesses section on the IRS website.
FAQs
Who qualifies for the IRS tax relief?
Residents and businesses in FEMA-designated disaster areas like Los Angeles County.
What is the new filing deadline for affected taxpayers?
Taxpayers have until October 15, 2025, to file returns and make payments.
Do taxpayers need to apply for relief?
No, relief is automatically provided based on IRS-registered addresses.
What deadlines are extended?
Income tax returns, payroll taxes, estimated taxes, and business filings.
Are penalties waived for missed deposits?
Yes, for payroll and excise tax deposits due between January 7 and 22, 2025.
