California Wildfires: Tax Relief
The IRS tax relief postpones various tax filing and payment deadlines that occurred from Jan. 7, 2025, through Oct. 15, 2025.
The IRS has announced tax relief for individuals and businesses in southern California affected by wildfires and straight-line winds that began Jan. 7, 2025.
Currently, individuals and households that reside or have a business in Los Angeles County qualify for tax relief. This same relief will be available to additional counties that are designated by the Federal Emergency Management Agency (FEMA).
IRS filing and payment relief
The IRS tax relief postpones various tax filing and payment deadlines that occurred from Jan. 7, 2025, through Oct. 15, 2025. As a result, affected individuals and businesses will have until Oct. 15, 2025, to file returns and pay any taxes that were originally due during this period.
This means, for example, that the Oct. 15, 2025, deadline will now apply to:
Quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31, 2025.
2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.
2024 contributions to IRAs and health savings accounts for eligible taxpayers.
Form 5500 series returns that were required to be filed on or after Jan. 7, 2025, and before Oct. 15, 2025.
Individual income tax returns and payments normally due on April 15, 2025.
Calendar-year partnership and S corporation returns normally due on March 17, 2025.
Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
Calendar-year tax-exempt organization returns normally due on May 15, 2025.
Additionally, penalties for failing to make payroll and excise tax deposits due on or after Jan. 7, 2025, and before Jan. 22, 2025, will be abated if the deposits are made by Jan. 22, 2025.
Note: Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits.
Additional IRS relief
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (2025), or the return for the prior year (2024). Be sure to write the FEMA declaration number (4856-DR) on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details.
Relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
The IRS may provide additional disaster relief in the future.
Employment Development Department relief for CA employers
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 CA Employment Development Department (EDD) to file their state payroll reports and/or deposit payroll taxes without penalty or interest. Extension requests can be called in our submitted in writing. Please visit the EDD's site for more details: Emergency and Disaster Assistance for Employers.
In addition, Disaster Unemployment Assistance (DUA), is available to provide temporary financial assistance to individuals who have lost their jobs or had their employment interrupted due to a major disaster. These benefits are available to those who are not eligible for regular state unemployment insurance. Following a presidentially declared major disaster, FEMA provides funds to the U.S. Department of Labor for the payment of DUA benefits so DUA benefits are not chargeable to the employer. Please visit the EDD's site for more details: EDD Disaster-Related Services.
Resources
IRS news release: CA wildfire victims qualify for tax relief; various deadlines postponed to Oct. 15:
IRS resources for victims of CA wildfires:
https://www.irs.gov/newsroom/help-for-victims-of-wildfires-in-california
FEMA disaster declarations for CA wildfires:
https://www.fema.gov/disaster/4856
EDD emergency and disaster assistance for employers:
https://edd.ca.gov/en/payroll_taxes/Emergency_and_Disaster_Assistance_for_Employers/
ADP Compliance Resources
ADP maintains a staff of dedicated professionals who carefully monitor federal and state legislative and regulatory measures affecting employment-related human resource, payroll, tax and benefits administration, and help ensure that ADP systems are updated as relevant laws evolve. For the latest on how federal and state tax law changes may impact your business, visit the ADP Eye on Washington Web page located at www.adp.com/regulatorynews.
ADP is committed to assisting businesses with increased compliance requirements resulting from rapidly evolving legislation. Our goal is to help minimize your administrative burden across the entire spectrum of employment-related payroll, tax, HR and benefits, so that you can focus on running your business. This information is provided as a courtesy to assist in your understanding of the impact of certain regulatory requirements and should not be construed as tax or legal advice. Such information is by nature subject to revision and may not be the most current information available. ADP encourages readers to consult with appropriate legal and/or tax advisors. Please be advised that calls to and from ADP may be monitored or recorded.
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Updated on January 21, 2025
