Relief from tax payments for Californian wildfire victims has been approved by the Internal Revenue Service, with deadline extensions scheduled until October 15, 2025.
IRS Announces Tax Relief for Southern California Wildfire Victims
The Internal Revenue Service (IRS) has announced tax relief measures for individuals and businesses affected by the southern California wildfires and straight-line winds in 2025. This relief applies to taxpayers in federally designated disaster areas, including parts of southern California affected since January 7, 2025.
Key details of the IRS tax relief include:
- Extended deadlines: Tax filing and payments normally due between January 7, 2025, and October 15, 2025, are now postponed until October 15, 2025. This extension covers:
- Individual income tax returns and payments, including the usual April 15, 2025, deadline.
- 2024 contributions to IRAs and Health Savings Accounts until October 15, 2025.
- Quarterly estimated income tax payments due January 15, April 15, June 16, and September 15, 2025.
- Quarterly payroll and excise tax returns normally due January 31, April 30, and July 31, 2025.
- Penalty relief: Penalties on payroll and excise tax deposits due between January 7 and January 22, 2025, will be waived if the payments are made by January 22, 2025.
- Who qualifies: The relief applies to individuals and businesses in areas declared eligible by FEMA for individual or public assistance due to the wildfires and related disasters.
- Additional relief options: Those affected may claim casualty loss deductions related to the disaster, potentially allowing accelerated tax refunds, even if they take the standard deduction.
- Faster IRS relief process: Recent changes allow the IRS to grant such tax relief more rapidly once a state declares a disaster, providing automatic extensions up to 120 days for affected taxpayers.
These measures aim to ease the tax compliance burden on disaster victims by allowing more time to file returns and make payments, as well as providing penalty relief for related tax deposits.
For more details on disaster-related tax relief, refer to Publication 547, Casualties, Disasters, and Thefts, and Publication 525, Taxable and Nontaxable Income. Taxpayers should also check for any updated IRS declarations or local state relief programs.
The IRS has indicated that further disaster relief may be announced as the situation develops. Filers must include the FEMA declaration number, 4856-DR, on their returns.
Taxpayers who experienced uninsured or unreimbursed disaster-related losses have the option to claim those losses on either their 2025 tax return (filed next year) or their 2024 tax return. For taxpayers outside the disaster area but whose records are located within it, the IRS offers relief upon request. These individuals or businesses should contact the IRS at 866-562-5227.
A complete list of eligible localities and additional information can be found on the IRS's Tax Relief in Disaster Situations page.
The IRS announced tax relief for businesses and individuals in the affected areas of southern California wildfires, allowing extended deadlines for tax filings and payments until October 15, 2025. This relief also includes penalty waivers for payroll and excise tax deposits due between January 7 and January 22, 2025, provided the payments are made by January 22, 2025. In general-news related to finance, the IRS is easing the tax compliance burden for disaster victims, offering relief for businesses affected by the southern California wildfires in 2025.
