IRS Announces Tax Relief For Taxpayers Affected By Wildfires In California

If you follow AECC Mobility on LinkedIn? you may have viewed our post last week dealing with tax free relief employers can provide their employees. You may view it here:

Earlier this month the Internal Revenue Service also announced tax relief for individuals and businesses in parts of California affected by the wildfires that began on January 7th. These taxpayers have until October 15, 2025 to file federal individual and business tax returns and submit tax payments and scheduled filings. https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

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Common extensions include the following:

For individuals

·????? Individual income taxes normally due April 15th 2025

·????? 2024 contributions to IRAs and health savings plans

·????? Estimated tax payments normally due January 15th, April 15th, June 16th, and September 15th,2025

For businesses

·????? Postponement of filing returns and tax payments for calendar-year partnerships and S-corporations, as well as the estimated tax payments due March 17th

·????? Similar relief is granted to tax-exempt organizations and for fiduciary returns and payments due April 15th

·????? Businesses utilizing fiscal years, will receive postponement if their filing deadline falls between January 7th and October 15th

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Who Qualifies?

The IRS is granting relief to any individual or business with an address of record with the IRS, located in Los Angeles County. Other counties affected will be added as necessary.

Taxpayers who moved into the affected areas without an appropriate address of record can still receive abatement by contacting the IRS at the phone number shown on the deficiency notice they receive.

Late payment and filing relief may also be available for taxpayers living outside the declared fire disaster area if their tax records, necessary to meet a filing deadline during the postponement period, are located in the disaster area. Contact the IRS at (866) 562-5227 to make such a request.

Late filing payment relief is also available to workers assisting with relief activities as well as workers who are affiliated with a government agency or philanthropic organization involved in disaster relief.

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State and County Relief

Governor Gavin Newsom signed Executive Oder N-10-25 directing that taxpayers in the following zip codes may postpone their property tax payments and business personal property tax statement filings until April 10,2026 without penalties and/or interest:

90019 90041 90049 90065 90266

90272 90290 90402 91001 91040

91104 91106 91107 93535 93536

Any property in Los Angeles County that was damaged or destroyed and the losses exceed $10,000 in market value can request a reassessment of the property by filing form ADS-820 “Property Damaged or Destroyed by Misfortune or Calamity” with the County Assessor.

Check with your local and state offices for an updated list of affected areas and to obtain more information and instruction.

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Retirement Plan Relief

Taxpayers may be eligible to take a special disaster relief distribution from their retirement plan or IRA that would not be subject to the additional 10% early distribution tax. Often such a distribution allows the taxpayer to spread the income recognition of the withdrawal over three years. Some plans allow for hardship withdrawals as well. Check details with your plan provider as each plan or IRA has specific rules and guidance for their participants to follow.

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AECC is providing this information as a courtesy. It should not be considered tax advice. Please contact your tax professional or the IRS for further information.