California Wildfire Relief: Tax Filing and Payment Deadlines Extended

In response to the devastation caused by recent wildfires, various tax agencies have implemented filing and payment extensions to support affected individuals and businesses in Los Angeles County. This relief is intended to provide time for recovery, while easing the tax burdens that may have been exacerbated by the disaster.

Sales Tax Extension – CAEFTA

The California Department of Tax and Fee Administration (CDTFA) has announced an extension for sales and use tax filings for taxpayers in Los Angeles County. The original deadline of January 31, 2025, has been pushed to April 30, 2025. This measure aims to offer relief to businesses that may have been directly or indirectly impacted by the wildfires.

The automatic extensions for sales and use tax returns and payments to April 30, 2025, are eligible to those taxpayers who owed less than $1 million in sales and use tax on their 2024 third quarter returns.

Income Tax Relief – FTB

The Franchise Tax Board (FTB) has granted income tax filing and payment extensions following the California Major Disaster Declaration, which was approved by President Joe Biden on January 8, 2025. The federal declaration has prompted both the IRS and FTB to extend various tax deadlines for individuals and businesses in the affected region.

Taxpayers in Los Angeles County now have until October 15, 2025, to file their 2024 California tax returns and make payments for taxes that would otherwise have been due between January 7, 2025, and October 15, 2025. This relief applies to:

  • Individuals whose tax returns and payments are typically due on April 15, 2025.
  • Quarterly estimated tax payments normally due on January 15, April 15, June 15, and September 15, 2025.
  • Business entities with corporate, fiduciary or pass-through entity (PTE) returns typically due on March 15 and April 15, 2025.
  • PTE elective tax payments due on March 15 and June 15, 2025.
  • LLC annual tax payments due on April 15 and LLC fee payments due on June 15, 2025.
  • Tax-exempt organizations whose returns are typically due on May 15, 2025.

City of Los Angeles Business Tax Extension

For businesses within the City of Los Angeles, specifically the 90402, 90272 and 90049 zip codes, Mayor Karen Bass has announced an extension for city business tax filings. Businesses that have been directly impacted by the wildfires now have until April 14, 2025, to file their business taxes. This is an extension from the original deadline of February 28, 2025. Affected businesses can find additional information through The Office of Finance at finance.lacity.gov.

IRS Federal Tax Relief

At the federal level, the IRS has extended tax filing and payment deadlines for individuals and businesses in Los Angeles County. The relief period covers deadlines from January 7, 2025, through October 15, 2025. Affected taxpayers will have until October 15, 2025, to file their federal returns and make any necessary payments.

This extension includes:

  • Individual income tax returns and payments normally due on April 15, 2025.
  • Contributions to IRAs and health savings accounts (HSAs) for the 2024 tax year.
  • Quarterly estimated income tax payments, including those normally due on January 15, April 15, June 16, and September 15, 2025.
  • Quarterly payroll and excise tax returns typically due on January 31, April 30, and July 31, 2025.
  • Calendar-year partnership and S corporation returns due on March 17, 2025.
  • Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
  • Tax-exempt organization returns due on May 15, 2025.

Additionally, penalties for failing to make payroll and excise tax deposits between January 7 and January 22, 2025, will be waived, provided the payments were made by January 22, 2025.

These tax relief measures provide valuable support for those affected by the wildfires, offering flexibility during the recovery process. Taxpayers should take advantage of these extensions to ensure compliance while focusing on rebuilding. For more details, impacted individuals and businesses should check the respective tax agencies’ websites linked below:

It is important to note that these extensions apply only to taxpayers and businesses located in Los Angeles County.  If you are unsure whether you qualify for an extension, please consult with a KBF tax professional here.