The recent wildfires in Los Angeles County have had devastating effects on residents and businesses alike. In response, both the Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB) have implemented tax relief measures to assist those affected.
Recognizing the challenges faced by taxpayers in disaster-stricken areas, the IRS has extended various tax filing and payment deadlines for individuals and businesses in Los Angeles County. Taxpayers now have until October 15, 2025, to file returns and pay any taxes that were originally due between January 7, 2025, and October 15, 2025.
Similarly, the California FTB has aligned with the federal relief, granting affected taxpayers until October 15, 2025, to file their state tax returns.
For businesses in Los Angeles County, the California Department of Tax and Fee Administration (CDTFA) has automatically extended the sales and use tax filing deadline from January 31, 2025, to April 30, 2025.
Taxpayers affected by the wildfires may be eligible to claim a disaster loss deduction on their federal and state tax returns. This provision allows for the deduction of unreimbursed losses on homes, vehicles, and personal belongings.
The IRS and California tax authorities are committed to providing necessary support to those impacted by the Los Angeles wildfires. Affected individuals should also review their workplace retirement plans to understand how disaster distributions may affect their tax situation.
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