The Internal Revenue Service (IRS) and the State of California have introduced tax relief measures for individuals and businesses impacted by the recent wildfires and straight-line winds devastating southern California.

Extended Filing and Payment Deadlines

Those located within the designated disaster area now have until October 15, 2025, to file certain tax returns and make payments originally due between January 7, 2025, and October 15, 2025. This extension applies to a variety of filings and payments, including:

  • Individual income tax returns and payments typically due on April 15, 2025.
  • Calendar-year partnership and S corporation returns originally due on March 17, 2025.
  • Corporation and fiduciary returns and payments for the calendar year, due April 15, 2025.
  • Tax-exempt organization returns for calendar-year entities, due May 15, 2025.
  • Quarterly estimated tax payments for 2024 and 2025, including:
    • January 15, 2025 (2024 Q4 payments)
    • April 15, June 16, and September 15, 2025 (2025 Q1, Q2, and Q3 payments)

Who Qualifies?

Currently, residents and businesses in Los Angeles County are included in the designated tax relief area. However, individuals outside the designated area may also qualify for relief under certain circumstances.

Major Disaster Declaration

President Biden’s Major Disaster Declaration for California authorizes additional support for affected taxpayers. Those who suffered uninsured or unreimbursed disaster-related losses can claim these losses on either:

  • The prior year’s tax return (2024), or
  • The year the disaster occurred (2025).

This flexibility allows taxpayers to optimize their financial recovery by choosing the year that provides the greatest tax benefit.

Need More Information?

For personalized guidance on whether you qualify for tax relief related to the California wildfires and straight-line winds, contact your KT representative today.