IRS Tax Relief for California Wildfire: The Internal Revenue Service (IRS) has announced tax relief for people and businesses in Southern California impacted by the wildfires and straight-line winds that started on January 7. This new relief gives taxpayers until October 15, 2025, to file their federal tax returns and make any necessary tax payments.
IRS Tax Relief for California Wildfire: Eligibility
The IRS is offering assistance to anyone living or running a business in areas designated by the Federal Emergency Management Agency (FEMA). Currently, people in Los Angeles County are eligible for this relief.
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The IRS will also extend the relief to any additional counties that are later included in the disaster zone. A list of eligible areas is regularly updated and can be found on the IRS website.
What Deadlines are Affected?
The tax relief delays several filing and payment deadlines that would normally occur between January 7 and October 15, 2025. This includes:
- Individual income tax returns and payments, which are usually due on April 15, 2025.
- Contributions to IRAs and health savings accounts for eligible taxpayers in 2024.
- Estimated tax payments that are due throughout the year, including January 15, April 15, June 16, and September 16, 2025.
- Quarterly payroll and excise tax returns, which would usually be due by January 31, April 30, and July 31, 2025.
- Calendar-year partnership and S corporation returns due on March 17, 2025.
- Calendar-year corporation and fiduciary returns and payments, typically due on April 15, 2025.
- Tax-exempt organizations’ calendar-year returns, usually due on May 15, 2025.
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If businesses missed payroll or excise tax deposits between January 7 and January 22, 2025, they won’t be penalized as long as those payments are made by January 22, 2025.
How to Receive the Relief?
Taxpayers who live or do business in the affected areas don’t need to contact the IRS to receive the relief. The agency will automatically apply the filing and penalty relief for anyone with an IRS registered address in the disaster zone.
For more details on other returns and payments that qualify for this relief, taxpayers can visit the IRS website. The site also includes information on disaster assistance and emergency relief programs available to individuals and businesses.
This move aims to help people impacted by the wildfires and provide them with extra time to meet their tax obligations without facing penalties.