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IRS and California Tax Relief for California Wildfire Victims

Graham & Jones

The IRS (IR-2025-10) and California Franchise Tax Board (FTB) have extended tax filing and payment deadlines for victims of the wildfires and straight-line winds that began on January 7, 2025, in Los Angeles County, California. This relief applies to affected individuals, businesses, and tax-exempt organizations, including those with records in the disaster area.


Federal Tax Relief:

  • The IRS has postponed filing and payment deadlines to October 15, 2025, for tax returns originally due between January 7 and October 15, 2025.


  • This includes the following due dates:

    • 2024 individual and business income tax returns due April 15, 2025

    • Quarterly estimated tax payments due January 15, April 15, June 15, and September 15, 2025

    • 2024 IRA/HSA contributions

    • Payroll and excise tax returns due January 31, April 30, and July 31, 2025


  • Penalties for payroll and excise tax deposits due from January 7-22, 2025, will be waived if paid by January 22, 2025.


  • Affected taxpayers may claim disaster-related losses on their 2024 or 2025 federal income tax return. FEMA declaration numbers must be included on claims for disaster losses.


California Relief:

  • The FTB has extended filing and payment deadlines for Los Angeles County residents and businesses until October 15, 2025, for the following:

    • 2024 individual income tax returns due April 15, 2025

    • Quarterly estimated tax payments

    • Partnership, corporate, and tax-exempt organization returns due in March and May 2025


  • California employers in the disaster area may request up to two months’ extension for payroll reports and tax payments, including unemployment insurance and disability taxes.


  • Sales and use tax returns due January 31, 2025, are automatically extended to April 30, 2025, for taxpayers with less than $1 million in tax liability. Extensions may be available to larger taxpayers and those outside of Los Angeles County upon request.


Other Assistance:

  • Individuals impacted by the wildfires may qualify for disaster unemployment assistance or paid family leave benefits.


  • Qualified disaster relief payments, which reimburse expenses incurred due to the disaster, are excluded from gross income under IRC Section 139 but are subject to unemployment insurance and state disability taxes.


If you have any questions related to this extension, please call us to discuss!


Note: This article is intended solely for informational purposes and should not be interpreted as specific tax, accounting, or legal advice for any individual or organization. The legal statutes and authorities mentioned herein may change, and we are not responsible for updating this document to reflect such changes. For advice tailored to your specific circumstances, please consult a qualified tax professional who can consider the relevant laws and facts applicable to your situation.



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