IRS Announces Tax Relief for Individuals and Businesses in Southern California Affected by Recent Disasters
Today, the Internal Revenue Service (IRS) has today unveiled crucial tax relief measures aimed at assisting individuals and businesses in Southern California impacted by the recent wildfires and strong winds commencing January 7, 2025. This announcement is a pivotal step in the federal response to help communities recover from these unfortunate events.
Filing and Payment Deadlines Extended
Affected taxpayers now have until October 15, 2025, to file various federal individual and business tax returns and make tax payments. This relief applies to areas designated by the Federal Emergency Management Agency (FEMA). Currently, those residing or conducting business in Los Angeles County are eligible for this tax relief, with provisions extending to any additional counties added to the disaster area in the future. Taxpayers can check the latest updates on eligible localities via the IRS Tax Relief in Disaster Situations page. During the postponement period—which spans from January 7, 2025, through October 15, 2025—various filing and payment deadlines are postponed. Notably, this impacts:
- Individual income tax returns due on April 15, 2025,
- IRA and Health Savings Account contributions for eligible taxpayers
- Quarterly estimated income tax payments due throughout 2025
- Payroll and excise tax returns due earlier in 2025
- Various returns for partnerships, S corporations, and tax-exempt organizations
Moreover, any penalties for failing to make payroll and excise tax deposits due between January 7 and January 22, 2025, will be waived as long as those deposits are made by the latter date. For a comprehensive overview of qualifying returns and payments, visit the Disaster Assistance and Emergency Relief page.
Automatic Relief for Affected Taxpayers
The IRS will automatically extend filing and penalty relief to any taxpayer with an IRS address in the disaster zone—no action is required on their part to receive it. For those who may have moved to the disaster area after filing their initial return, it’s crucial to respond to any penalty notices by contacting the IRS, as they may have been overlooked. Taxpayers who live outside the disaster area but whose necessary records are located in the affected area can also receive support. These individuals should reach out to the IRS at 866-562-5227. This includes workers affiliated with recognized organizations assisting in relief efforts.
Additional Relief Options
Individuals and businesses within federally declared disaster zones facing uninsured losses have the option to claim these losses on either the upcoming 2025 tax return or the previous year’s return (2024). They have up to six months post their return’s due date to make this claim, with the deadline set for October 15, 2026, for individual taxpayers. Remember to include the FEMA declaration number—4856-DR—when filing for these losses. Qualified disaster relief payments are generally excluded from gross income, allowing affected taxpayers to forgo taxes on funds received from the government for necessary living or repair expenses. For detailed guidelines, refer to Publication 525.
Taxpayers involved in retirement plans may qualify for special distributions exempt from the usual early withdrawal penalties, among other benefits. The IRS remains committed to potentially offering additional disaster relief as assessments continue.
Tax Return Preparation Assistance
For those seeking help with tax return preparation, several resources are available to assist eligible individuals and families:
- Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE)offer free tax help. Find your nearest location using the VITA Locator Tool.
- AARP’s Tax-Aide program is available through the AARP Site Locator Tool
- Individuals with an adjusted gross income of $84,000 or less can access the [IRS Free File’s Guided Tax Software at no cost, available in both English and Spanish.
- MilTax, a free resource from the Department of Defense, provides return preparation software for military members and some veterans, without an income limit.
For taxpayers needing further assistance or detailed information on the impact of these measures, the IRS encourages reaching out directly or visiting DisasterAssistance.gov for further disaster recovery resources.
