INSIGHT

State and Federal Tax Relief for Los Angeles County Wildfire Victims

January 21, 2025

Services: Tax

---

As wildfires continue to affect countless lives across Los Angeles County, our hearts are with those impacted by these devastating events. At BPM, we stand with you during this challenging time. Our commitment to supporting you remains unwavering, and we are here to provide guidance and support as you navigate the road ahead towards healing and recovery.

To support you in understanding the available tax relief, we have outlined key state and federal measures for those impacted by the wildfires in Los Angeles County below.

Overview of relief

Both federal and state officials have announced tax filing and payment relief for individuals and businesses in Los Angeles County affected by the wildfires that began on January 7, 2025. Below is an overview of the relief, followed by a table listing important original and extended due dates. Additional counties may be added later to the relief. As of this date, Los Angeles County is the only county that qualifies for the relief.

Federal relief

• The IRS provides an extended filing and payment deadline of October 15, 2025, for certain federal tax returns and payments that would have been due January 7, 2025, through October 15, 2025.
• Eligible taxpayers include individuals, households, and businesses in Los Angeles County, and any area later designated by the Federal Emergency Management Agency (FEMA). The current list of eligible localities is always available on the “Tax relief in disaster situations” page on IRS.gov
• This relief covers individual, corporate, partnership, S corporation, fiduciary and exempt organization tax returns; certain estimated income tax payments; and certain payroll and excise tax returns. See the table below for more detailed information.
• Penalties on payroll and excise tax deposits due on or after January 7, 2025, and before January 22, 2025, will be abated if deposits are made by January 22, 2025.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers with addresses within the disaster area do not need to contact the agency to get this relief.

Taxpayers outside the disaster area but who are affected by the disaster (e.g., records located in the disaster zone) can seek relief by contacting the IRS at 866-562-5227.

California relief

The California Franchise Tax Board (FTB) is postponing the deadline for 2024 state income tax returns and payments to October 15, 2025, for Los Angeles County taxpayers. The extended timeline parallels the federal extension, giving affected taxpayers a unified due date.

This deferral covers 2024 individual returns (due April 15, 2025), corporate and pass-through entity returns (due March 17 or April 15, 2025), quarterly estimated tax payments, and tax-exempt organization filings (due May 15, 2025). See the table below for more detailed information.

The California Department of Tax and Fee Administration (CDTFA) has extended certain tax filing deadlines and offered relief measures for taxpayers in Los Angeles County affected by the recent wildfires. Taxpayers within Los Angeles County are granted an automatic three-month extension until April 30, 2025, for CDTFA returns and payments originally due on or before January 31, 2025. However, there are limitations on qualification for this automatic extension, so we recommend accessing the CDTFA for further information. The extension applies to sales and use tax returns for taxpayers within Los Angeles County. However,  the extension for sales and use tax returns and payments to April 30, 2025, are eligible only to those taxpayers who owed less than $1 million in sales and use tax on their 2024 third quarter returns. A list of all tax programs included in this extension is available here. For further information, the CDTFA can be reached at 1-800-400-7115.

EDD Payroll Tax extension for employers in Los Angeles and Ventura Counties

• Employers in Los Angeles and Ventura Counties directly affected by the Palisades Fire and windstorm conditions may request up to a two-month extension of time from the Employment Development Department (EDD) to file their state payroll reports and/or deposit payroll taxes without penalty or interest.
• This extension may be granted under section 1111.5 of the California Unemployment Insurance Code (CUIC), which allows the director to extend due dates following a declared state of emergency.
• A request for extension must be received within two months from the original delinquent date of the payment or return.

LA County property tax relief for disaster-damaged properties

Application for Reassessment (M&C Claim, Form ADS-820)

• The Los Angeles County Assessor’s Office recommends that property owners file an Application for Reassessment of Property Damaged or Destroyed by Misfortune or Calamity (ADS-820) within 12 months from the date the property was damaged or destroyed.
• The property owner must have owned the property as of January 1 of the calendar year following the event, and the estimated property damage must be at least $10,000.
• Properties acquired after January 1 of the calendar year following the event may also qualify if the new owner is liable for the property taxes for the ensuing fiscal tax year (July 1 to June 30).
• Filing this form allows the Assessor’s Office to temporarily reduce the property’s assessed value until repairs are completed, potentially lowering the owner’s property tax bill in the interim.
• The M&C Claim form (ADS-820) is available on the Assessor’s website: https://assessor.lacounty.gov/tax-relief/disaster-relief.

The Governor of California has signed an executive order providing tax relief for property owners in specific Los Angeles County areas. Residents in the following ZIP codes are eligible to delay their property tax payments to April 10, 2026, and extend their business personal property tax statement filing deadline to April 1, 2026, with no penalties or interest charges:

• 90019
• 90265
• 91001
• 91107
• 90041
• 90272
• 91040
• 93535
• 90049
• 90290
• 91104
• 93536
• 90066
• 90402
• 91106

It’s important to note that this tax relief does not extend to properties with existing tax delinquencies as of January 6, 2025, or to taxes paid through impound accounts.

Property owners have additional options for relief beyond this executive order. They can request a reassessment of damaged or destroyed property through the Los Angeles County Assessor’s office. Furthermore, the Los Angeles County Treasurer and Tax Collector offers a penalty cancellation request program that could provide up to four years of penalty and interest suspension for eligible taxpayers.

Deferred due dates for Federal and California tax matters

Tax Return or Payment Type	Original Due Date(s)	Deferred Due Date
Individual 2024 income Tax Returns and payments due	April 15, 2025	October 15, 2025
Quarterly Estimated Income Taxes for Individuals and Business entities	January 15 (individual), April 15, June 16, and September 15, 2025	October 15, 2025
Fiduciary income tax returns and payments**	April 15, 2025	October 15, 2025
Corporate income tax returns and payments	April 15, 2025	October 15, 2025
Pass-Through Entity Tax Returns (Calendar Year)	March 17, 2025	October 15, 2025
CA Pass-Through Entity (PTE) Elective Tax Payments	March 17 and June 15, 2025	October 15, 2025
Tax-Exempt Organization Returns	May 15, 2025	October 15, 2025
IRS Payroll & Excise Tax Deposits	Deposit dates on or after January 7, 2025, & before January 22, 2025	No penalty if paid by January 22, 2025
IRA and HSA Contributions for 2024	Usually due by April 15, 2025 (individual filing deadline)	October 15, 2025
Quarterly Payroll & Excise Tax Returns (see EDD paragraph above for CA extension)	January 31, April 30, and July 31, 2025	October 15, 2025

 

**The state of California has not directly listed fiduciary returns as qualifying for the CA filing and payment deferral.

 

Tax relief considerations

• Qualified disaster relief payments are generally excluded from gross income.
• Special rules apply for disaster-related IRA and retirement plan distributions.

Loss deduction considerations

Individuals and businesses with uninsured or unreimbursed disaster-related losses due to a presidentially declared disaster may choose to claim such losses on income tax returns for either the year of the loss (2025) or the prior year (2024). This is a federal election and should be carefully considered. The State of California offers a similar option as well for a presidentially declared disaster. The Los Angeles wildfires were formally declared as a federal disaster by President Biden on January 8, 2025. The FEMA declaration number is 4856-DR. Losses could include property damage, destruction, or theft (including looting) that occurred as a direct result of the disaster.

The deduction for this type of loss has changed significantly over the last number of years, legislatively. Therefore, please consult your BPM tax advisor before claiming this loss. In general, the tax law has changed over time to eliminate the 10% adjusted gross income threshold that individual taxpayers were previously required to exceed to claim a deduction. In addition, individual taxpayers generally no longer must itemize their deductions (Schedule A) to claim this type of loss.

BPM is committed to guiding you through these tax relief measures and assisting you with any questions or concerns you may have. Please do not hesitate to reach out to our team for personalized support during this time.

Together, we will navigate this very challenging experience with resilience and care. Your safety and wellbeing are the top priority. We will be here when you are ready to discuss tax matters.

Stay safe and be well.