IRS Announces Tax Relief for California Wildfire Victims: Extended Filing and Payment Deadlines

The IRS has extended tax relief to individuals and businesses impacted by the wildfires that began on January 7, 2025, in Los Angeles County and the surrounding areas. Taxpayers in the affected areas now have until October 15, 2025, to file tax returns and make payments that were originally due during this period.

Key Relief Highlights

• Extended Deadlines: Taxpayers affected by the wildfires (including all residents and businesses located in Los Angeles County) have until October 15, 2025, to file and pay:
  • • Individual income tax returns that were due on April 15, 2025.
    • Estimated tax payments that were due on January 15, April 15, June 16 and September 15, 2025.
    • Business and tax-exempt entity tax returns that were due on January 31, March 17, April 30, May 15 and July 31, 2025.
• Penalty Relief: The IRS will waive penalties on payroll and excise tax deposits due between January 7 and January 22, 2025, as long as they are made by January 22, 2025.
• Casualty Losses: Affected taxpayers can deduct disaster-related casualty losses on their federal income tax return for either the year the event occurred or the previous year. The FEMA disaster declaration number (4856-DR) should be included on the return.
• Retirement Plan Relief: Eligible taxpayers may take special disaster distributions from retirement plans without incurring the usual 10% early withdrawal penalty, with the option to spread the income over three years.
• Additional Relief: The IRS will waive fees for requests for copies of previously filed tax returns and transcripts for affected taxpayers.

Taxpayers should make sure to include the FEMA disaster declaration number (4856-DR) on any tax-related forms.

More Information

For further guidance, taxpayers are encouraged to visit the IRS website or consult IRS Publication 547 on casualty losses and other relevant forms.

For those outside the affected areas but impacted for other qualifying reasons, the IRS disaster hotline at 866-562-5227 can provide assistance.

To learn more, read the IRS’ Jan. 10 announcement.