Dear Clients and Friends,
First and foremost, our thoughts and prayers go to everyone affected by the recent fires in Los Angeles County and other communities. Please know that we are here to help with any questions and concerns that you may have. Don’t hesitate to let us know how we can assist.
We want to share some important updates about tax relief for those impacted by the Los Angeles wildfires. In addition to the IRS relief measures, the State of California has announced expanded tax relief for individuals and businesses in Los Angeles County. Governor Newsom’s recent statement (January 11, 2025) provides state-level relief aligned with the federal filing and payment postponements. This includes:
- Extended deadlines for state income tax filings and payments, paralleling federal deadlines through October 15, 2025.
- Relief for payroll and excise tax returns, business taxes, and contributions to state retirement plans and health savings accounts.
- Waivers of penalties and interest for qualifying taxpayers in disaster areas.
For more details on California’s tax relief measures, visit the Governor’s Office announcement.
The IRS has also granted similar filing and payment postponements to all residents of Los Angeles County for tax deadlines that normally fall within the January 7, 2025, through October 15, 2025, time period. This federal relief includes (but is not limited to):
- 2024 quarterly estimated income tax payments normally due on January 15, 2025, and estimated tax payments normally due on April 15, June 16, and September 15, 2025;
- Quarterly payroll and excise tax returns normally due on January 31, April 30, and July 31, 2025;
- Individual income tax returns and payments normally due on April 15, 2025;
- 2024 contributions to IRAs and health savings accounts for eligible taxpayers;
- 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; and
- Calendar-year tax-exempt organization returns normally due on May 15, 2025.
For full details on the IRS tax relief and qualifying provisions, visit the IRS Disaster Relief page.
Additionally, penalties for failing to make 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.
Currently, no other California Counties are listed in the FEMA disaster declaration, so the IRS cannot currently grant automatic postponement relief to taxpayers located in other Counties. The IRS has indicated that the same relief will be provided to any other counties added later to the disaster area.
Automatic Qualification and Additional Relief:
Taxpayers with a Los Angeles County address of record will automatically qualify for relief. If you live outside of Los Angeles County but have records or businesses in the county, you can also qualify by contacting the IRS disaster hotline at (866) 562-5227.
As always, we are here to assist you in navigating these updates and ensuring compliance with all federal and state tax obligations. Please reach out to us if you have questions or require assistance with your tax filings or payments.
We hope everyone continues to remain safe and take precautions to protect families and loved ones.
Warm regards,
DUFFY KRUSPODIN, LLP