IRS and FTB Extend Filing Deadlines for Los Angeles County Following Wildfire Disaster

The recent wildfires in Los Angeles County, which began on January 7, 2025, have devastated communities by destroying homes and businesses, leading to widespread evacuations and physical hardship. In response, both the Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB) have announced crucial deadline extensions for tax filings and payments. This significant relief aims to provide financial and administrative breathing room for those impacted by the natural disaster. 

Federal Tax Relief Provided by the IRS

Extended Filings and Payments

The IRS now allows additional time to file and pay taxes that were originally due at any point between January 7, 2025, and October 15, 2025. Instead of those original deadlines, all such filings and payments may be completed by October 15, 2025, without incurring late-filing or late-payment penalties. This includes:

• 2024 individual income tax returns (normally due April 15, 2025).
• 2024 quarterly estimated tax payments (normally due on January 15, April 15, June 16, and September 15, 2025).
• Partnership and S corporation returns (normally due March 17, 2025).
• Corporate and fiduciary returns (normally due April 15, 2025).
• Quarterly payroll and excise tax returns (normally due January 31, April 30, and July 31, 2025).
• Tax-exempt organization returns (normally due May 15, 2025).
• Contributions to IRAs and Health Savings Accounts for the 2024 tax year.

If you were planning to file in early 2025, you now have until mid-October to do so. The extended window should be used to ensure your tax forms are accurate, especially if you have business or personal records that need to be reconstructed due to fire damage.

Penalty Relief

Another aspect of this relief covers penalties for payroll and excise tax deposits. If these were due on or after January 7, 2025, and before January 22, 2025, penalties will be waived so long as you made (or make) the required deposits by January 22, 2025. This offers truly vital relief for businesses that have suffered operational disruptions as a result of the fires.

Eligibility Criteria for IRS Relief

Most taxpayers in Los Angeles County will automatically qualify based on their IRS address of record. If you recently moved or do not live in Los Angeles County but keep your pertinent business or personal tax records there, you can still qualify by contacting the IRS disaster hotline at (866) 562-5227. Additionally, tax preparers in the disaster area may file bulk requests on behalf of clients situated elsewhere if the relevant records are located in Los Angeles County.

California State Relief Provided by FTB

Extended Filings and Payments

The FTB has largely conformed to the IRS postponements, extending deadlines to October 15, 2025, for any state filings and tax payments that would normally be due from January 7 through October 15, 2025. This covers 2024 individual income tax returns, quarterly payments, business entity filings, and pass-through entity payments. Notably, if you are a California taxpayer who originally faced an April 15, 2025, filing date, you may benefit from the alignment with the federal schedule.

EDD and CDTFA Relief

California’s relief efforts don’t stop with FTB extensions. The state Employment Development Department (EDD) grants up to a 60-day extension for those who must file state payroll reports or deposit payroll taxes. Employers seeking this extension should submit a written request within 60 days of the original due date. Likewise, the California Department of Tax and Fee Administration (CDTFA) may grant extensions of up to three months for sales and use tax returns and payments, with additional relief from penalties or interest possible upon request. While these relief measures don’t apply automatically in every circumstance, the CDTFA will consider hardship filings, especially if you live or run a business in the disaster area and can show direct impact from the wildfires.

Other Considerations

Although these extensions apply specifically to Los Angeles County at the moment, other counties could be designated if the fires spread or if additional assessments indicate further need. Taxpayers should monitor announcements from FEMA and the IRS to see whether new locations are added.

For those who suffered substantial property damage, there may be an option to claim casualty losses on your 2024 or 2025 tax return. This can potentially accelerate any refund and ease financial burdens. Those involved in 1031 exchanges (property transactions allowing you to defer capital gains by rolling proceeds into new property) should also remember that the IRS can extend deadlines in federally declared disasters, though these rules can become quite complex.

Finally, some Los Angeles County homeowners may qualify for a reduction in property taxes by filing the relevant disaster relief forms with the County Assessor if their property was severely damaged or destroyed. This is an avenue well worth exploring if you are grappling with costly rebuilding requirements.

Expert(s) Who Contributed to This Article

Andrew Phillips
Title: Chief Growth Officer
Email: andrew@phillipsgrouptax.com
Andrew Phillips co-founded The Phillips Group, leveraging more than a decade of experience with a boutique healthcare-focused accounting firm. He specializes in proactive, technology-driven tax and financial services for dentists, physicians, and other professionals.