Tax assistance for individuals and businesses impacted by the wildfires has been issued by the Internal Revenue Service and the State of California, while thousands of people are still under evacuation orders and advisories throughout Los Angeles. The IRS has stated that affected individuals will receive tax credits due to the damage caused by wildfires in regions of California starting on January 7, 2025. There will be a postponement of some deadlines that fall on or after January 7, 2025, but before October 15, 2025.
During this time, the deadlines for CESAs, HSAs, IRAs, and other tax-advantaged accounts will be extended. Anyone with an IRS address of record in the disaster region is automatically eligible for filing and penalty relief from the IRS. Taxpayers can receive this benefit without contacting IRS. For the deferral period, if the IRS notifies you of a late filing or late payment penalty.Â
IRS confirms tax relief for California wildfire victims
Tax aid was made available by the Internal Revenue Service (IRS) to people and businesses in Southern California affected by the straight-line winds and wildfires that started on January 7. These people now have until October 15th to file their federal tax forms and pay their taxes. Wherever the Federal Emergency Management Agency (FEMA) designates, the IRS offers assistance.
Individuals and households that live or work in LA County can now receive a tax deduction. The assistance will be the same for any new counties added to the disaster area. The latest list of qualifying localities is always available on the IRS.gov, so check it now.
Action Items and Important Dates
The January 7, 2025, to October 15, 2025, deadlines for filing and paying federal taxes for individuals and corporations have been extended to October 15, 2025. Most immediately, the reduction will apply to federal expected tax payments for the fourth quarter of 2024 that are due on January 15, 2025. The 2025 deadlines listed below are among the further tax filing and payment reliefs:
- Income tax returns for individuals in 2024.
- Contributions for 2024 to HSAs and IRAs.
- Estimates of tax payments are made every quarter.
- Quarterly returns for payroll and excise taxes are filed.
- Partnerships, S companies, corporations, fiduciaries, and tax-exempt organizations’ calendar-year returns.
Penalties for late payroll and excise tax payments due on or after January 7, 2025, but before January 22, 2025, will also be eliminated as long as the contributions are made by the deadline. Information on various tax-activities, payments, and returns that are eligible for relief during the deferral period is available.
Any taxpayer with an IRS-registered address who lives in a disaster area will be eligible for automatic filing and penalty relief and you dont have to contact the IRS in order to receive this assistance.
Deadlines Extended to October 15 for California Wildfire Victims
People and businesses impacted by the disastrous wildfires and straight-line winds in Southern California have received significant tax relief from IRS. Beginning on January 7, 2025, these disasters have severely disrupted and destroyed the affected towns.
Some tax filing and payment deadlines have been rescheduled by the IRS to October 15, 2025, in an effort to lessen the administrative and financial strain. In disaster-affected areas, this help is accessible to qualified taxpayers, giving them ample time to recuperate and take care of their tax obligations.
Who Qualifies for IRS Tax Relief?
The FEMA has designated disaster zones where businesses and individuals can receive tax relief. The IRS will share the same assistance to any other counties that FEMA adds to the disaster territory in the future, even if LA County is currently on the list of eligible counties. Without additional action, taxpayers with IRS addresses in these areas will automatically be eligible for relief.
Steps to access Tax Relief
- The tax relief provisions are immediately put into effect for taxpayers whose IRS addresses of record are located in disaster areas. To get a late filing or payment penalty notice waived if you are eligible for relief but still receive it, call the number on the notice.
- There may be additional measures required for people and companies that have just relocated to damaged areas or who do not have an IRS address on file in the disaster area. Examples of these actions include ensuring that mail is delivered to the correct address and updating your address with the IRS to reflect your most recent address. Additionally, businesses should confirm that they qualify for assistance and include any supporting evidence in any correspondence they receive.
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Samarth Choudhary is a Chief Editor at keralacobank.com. He has overall editorial experience of 10 years in online media. He has completed his graduation from University of California and masters in Finance from University of Dallas in year 2010. His major interest and expertise is in Finance, Taxes, Government Aid and Schemes. His Major focus is to help users to get relevant information which are published on keralacobank.com in easy and precise form.