The Los Angeles wildfires are severely impacting a large number of individuals and businesses. To that end, below is some important federal and state tax filing information and a tax planning opportunity for victims.

Federal Filing and Payment Extensions

IRS announced (IR-2025-10) that businesses and individuals in Los Angeles County who may have been impacted by the wildfires and straight-line winds that began on January 7, 2025, now have until October 15, 2025, to file various federal individual and business tax returns and make tax payments that were originally due during this period.

The relief is automatic for taxpayers with an IRS address of record in the designated disaster area. IRS will also work with any taxpayer outside the disaster area with records in the affected area.

The October 15, 2025, filing deadline applies, for example, to:

• Individual income tax returns and payments due on April 15, 2025.
• 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.
• 2024 contributions to IRAs and health savings accounts for eligible taxpayers.
• Quarterly payroll and excise tax returns normally due on January 31, April 30, and July 31, 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.

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 so long as the deposits are made by January 22, 2025.

Casualty Losses

Casualty loss deductions for personal use or investment property, as well as trade or business property, can provide an important lifeline for disaster victims during recovery efforts. The Internal Revenue Code allows taxpayers who are victims of federally declared disasters, such as these wildfires, to claim such losses in the year the loss occurred (2025) or on the prior year's return (2024). This has the potential to create significant tax savings and possible cash refunds for disaster victims.

There are also important tax consequences to consider in terms of insurance payments that you may be receiving and where the proceeds are subsequently invested.

State Tax Relief

Income Taxes

The California Franchise Tax Board, which administers the state's personal and corporate income taxes, announced that taxpayers in Los Angeles County are granted a postponement to October 15, 2025, to file California tax returns on 2024 income and make any tax payments that would have been due by January 7, 2025, through October 15, 2025.

Sales and Use Taxes

In addition, the California Department of Tax and Fee Administration has extended filing deadlines for sales and use tax and the other levies it administers.

Property Taxes

California's Calamity Claim Relief Program provides property tax relief for properties damaged or destroyed by disasters such as fires, earthquakes, or floods. Owners of real property, business equipment, fixtures, orchards, agricultural groves, aircraft, boats, and certain manufactured homes are eligible for calamity claim relief. Relief includes:

• Property Tax Reduction: The property is temporarily reassessed downward to reflect its damaged condition as of the date of the disaster.
• Supplemental Refunds: Property owners may receive a pro-rated refund based on the reduced assessment for the affected fiscal year.
• Base-Year Value Transfer: If a property is substantially damaged or destroyed in a governor-declared disaster, property owners may transfer the base-year value of their damaged property to a comparable replacement property. This transfer can occur within the same county or to another participating county that has adopted an ordinance allowing such transfers.
• A Deferment of the Next Regular Property Tax Installment Due April 10, 2025: As Governor Newsom declared a State of Emergency, a deferment is also available, and this will postpone the next regular property tax installment payment (April 10 for the second installment) until the assessor reassesses the property due to the damage and you receive a corrected property tax bill.

How Andersen Can Help

• Determine if you qualify for the postponed filing and payment deadlines,
• Assist with appraisals and tax filings for businesses and individuals to claim appropriate disaster-related tax relief, and
• Identify other forms of tax relief that may be available to assist with the rebuilding process for purposes of recovering from the disaster.

The Takeaway

Businesses and individuals in Los Angeles County who may have been impacted by the wildfires and straight-line winds that began on January 7, 2025, now have until October 15, 2025, to file various federal individual and business tax returns and make tax payments that were originally due during this period. The California Franchise Tax Board is granting income tax filing and payment postponements that align with those offered by IRS. Extended deadlines also apply to sales and use tax as well as other levies administered by the California Department of Tax and Fee Administration. Property tax relief is also available.