7 things those affected by the LA Fires need to know about the IRS Tax Relief
The IRS has announced critical tax relief for individuals and businesses affected by the recent LA wildfires and straight-line winds. If you’re navigating the aftermath, here are seven essential points about this relief.
1. Extended deadlines for filing and payments
The IRS has pushed various federal tax deadlines to October 15, 2025. This includes:
- Individual income tax returns and payments initially due on April 15, 2025.
- Quarterly estimated income tax payments for 2024, originally due on Jan. 15, April 15, June 16, and Sept. 15, 2025.
- Payroll and excise tax returns, initially set for Jan. 31, April 30, and July 31, 2025.
This extension gives you vital breathing room to focus on rebuilding while staying compliant.
2. Who’s eligible for the relief
Taxpayers residing or operating businesses in areas designated by FEMA (currently including Los Angeles County) automatically qualify for the relief. Even if you live outside the disaster zone but have records located in affected areas, you may still be eligible. Simply contact the IRS at (866) 562-5227 to verify.
3. IRA and HSA contributions get extra time
You now have until October 15, 2025, to make contributions to your 2024 IRAs and health savings accounts (HSAs).
4. Penalty waivers when filing late deposits
Penalties for failing to make payroll and excise tax deposits between Jan. 7 and Jan. 22, 2025, are waived as long as the deposits are made by January 22. Be sure to confirm the dates for your specific situation and avoid unnecessary penalties.
5. Claim disaster-related losses
If you’ve experienced uninsured or unreimbursed disaster-related losses, you’ve got options. Claim these losses on your 2025 return, or fast-track your claim by applying them to your 2024 return. This flexibility can provide immediate financial relief. Don’t forget to include FEMA declaration number 4856-DR on your tax return!
6. Help for businesses
Business taxpayers can also benefit from the extended deadlines for filing returns for partnerships, S corporations, regular corporations, fiduciaries, and tax-exempt organizations. These extensions allow businesses the extra time needed to focus on continuity and recovery while complying with tax obligations.
7. Get help from tax professionals
Navigating tax relief in the wake of a natural disaster can feel overwhelming. Consult a tax professional who understands disaster-relief claims to avoid missing crucial deadlines or opportunities.
Final Thoughts
The aftermath of the LA wildfires is an emotionally taxing time, and managing your finances might feel like one more burden. Resources, support systems, and this extended IRS relief are here to make the process a little smoother.
If you’re unsure where to start or need guidance, consider reaching out to us – we’ll help you through.