IRS Provides Tax Relief to Southern California Wildfire Victims

Introduction

The Internal Revenue Service (IRS) has announced tax relief for individuals and businesses affected by the devastating wildfires in Southern California. The relief applies to Los Angeles County residents and others as designated by the
Federal Emergency Management Agency (FEMA). Any filings or payments due from the date the wildfires started, January 7th, will be automatically extended until October 15.

Who is Eligible for Wildfire Tax Relief?

Eligibility for tax relief depends on your circumstance. If your IRS-recorded address is in the disaster zone, tax relief is automatically granted. Those outside the disaster zone but with necessary tax records located in the affected area should contact the IRS. Individuals whose tax preparer is affected can apply for an extension, though it’s not automatically guaranteed.

What’s Extended to October 15?

Several tax-related deadlines have been extended by the IRS, including individual income tax returns and payments usually due on April 15, 2024 contributions to IRAs, health savings accounts, and 2024 quarterly estimated income tax payments.

Additional Tax Relief Available

Apart from deadline extensions, taxpayers are entitled to other types of relief. These include claiming uninsured or unreimbursed disaster-related losses on either the 2025 return or the previous year’s return, and taking a special disaster distribution from a retirement fund without the additional 10% early distribution tax.

Where to Seek Help?

Those seeking help in reconstructing their financial life after a disaster can start with their advisor, who may have relevant records on file. The IRS can also provide wage income information through an IRS transcript.

Supporting Disaster Relief

Individuals wishing to support wildfire victims may also qualify for filings and payments extensions. However, it is essential to verify the legitimacy of charity organizations to ensure a tax deduction.

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