Tax Relief for LA County Wildfire Victims: Extended Income Tax Deadlines & Property Tax Relief
In the wake of the wildfires in Los Angeles County, the Internal Revenue Service, the California Franchise Tax Board, and Governor Gavin Newsom have offered tax relief for taxpayers in affected jurisdictions.
Federal and State Income Taxes
The Internal Revenue Service announced on January 10, 2025, that it would provide tax relief for individuals and households that reside or have a business in Los Angeles County. These taxpayers now have until Oct. 15, 2025, to file various federal individual and business tax returns and make tax payments.
The following payments and deadlines have been extended until October 15, 2025:
- Individual income tax returns and payments normally due on April 15, 2025.
- 2024 contributions to IRAs and health savings accounts for eligible taxpayers.
- 2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.
- Quarterly payroll and excise tax returns normally due on Jan. 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.
In addition, certain time-sensitive deadlines (such as identification and exchange deadlines for like-kind exchanges) have also been postponed until October 15, 2025.
On January 11, 2025, the California Franchise Tax Board also granted a postponement to October 15, 2025, for Los Angeles County taxpayers to file California tax returns on 2024 income and make any tax payments that would have been due January 7, 2025, through October 15, 2025. The California Franchise Tax Board noted that the extensions are intended to align with the federal extensions granted by the IRS.
California Property Taxes
On January 16, 2025, Governor Newsom issued an Executive Order to provide property tax relief for owners with property in the areas impacted by the Los Angeles County wildfires.
The order suspends penalties, costs, and any interest accrued on late property tax payments until April 10, 2026, for properties in the following zip codes: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, or 93536 (the “affected properties”). The order directs the tax collector to cancel any penalties, costs, and interest due during calendar year 2025 with respect to the affected properties. However, the suspension only applies to property tax payments that were not delinquent as of January 6, 2025, and does not apply to property tax payments made through an impound account.
Additionally, under the order, taxes owed by a taxpayer making payments pursuant to an installment plan with respect to an affected property will not be considered delinquent if, on or before January 7, 2025, all payments required by the plan were made.
In addition to Governor Newsom’s Executive Order, property owners in Los Angeles County can also seek to have their property taxes adjusted for any damage or destruction caused by the fires. To qualify, owners must file an Application for Reassessment: Property Damaged or Destroyed by Misfortune or Calamity Form (ADS-820 or through the Assessor’s e-form) (“M&C Claim”) with the Assessor’s Office within 12 months from the date the property was damaged or destroyed. The loss must exceed $10,000.
The filing of an M&C Claim in Los Angeles County serves as a request to the Assessor to reassess the value of the property damaged or destroyed by the calamity. Once an M&C claim has been approved, the taxpayer will receive an Adjusted Annual Secured Property Tax Bill. The adjusted bill will reflect the property’s new assessed value, and the new property tax amount due. This new assessed value will remain in effect until the property is fully repaired, restored or reconstructed. At that time, the prior base year value will be restored, so long as the value of the newly restored property is substantially equivalent to the property’s assessed value prior to the damage or destruction. Separate property tax protections are also available for owners that choose to sell their damaged property and purchase a new property within two years of the sale.
The firm will continue to monitor the local, state and federal tax relief efforts in connection with the Los Angeles County wildfires, so please do not hesitate to contact us directly if you have any questions or would like to learn more about the extended income tax filing and payment deadlines, or California property taxes for affected properties.
