On April 15th, American taxpayers are required to submit their 2024 individual income tax returns and make tax payments. However, the Internal Revenue Service (IRS) has announced that disaster-affected individuals from nine states are granted an automatic extension for filing and payment deadline until May 1st. In addition, taxpayers in Los Angeles County, California, are allowed an extension until October 15th to complete their filings.
Traditionally, in the event of a disaster, the IRS typically grants relief to taxpayers in areas designated by the Federal Emergency Management Agency (FEMA), including postponing various tax filing and payment deadlines. According to the IRS website, individuals and businesses located in disaster areas automatically receive additional time for filing without needing to apply.
In January of this year, Los Angeles County suffered from devastating wildfires. Consequently, the IRS extended the deadline for individual and business income tax filings and payments for Los Angeles County taxpayers from April 15th to October 15th.
Following this, the California Franchise Tax Board (FTB) also updated its website to extend the deadline for state tax filings for individuals and businesses in Los Angeles County to October 15th. Taxpayers filing via paper forms are required to write the name of the disaster (such as the Los Angeles County wildfires) in blue or black at the top of the form to alert the tax authorities. For electronic filers, disaster information must be input as per the software instructions.
The FTB reminds all California taxpayers that only individuals and businesses in Los Angeles County are permitted to delay filing and payment until October 15th, 2025. Taxpayers in non-disaster areas must file and pay by the regular deadline of April 15th.
Taxpayers in non-disaster areas who require additional time for filing must submit a tax extension request by April 15th, although payment cannot be extended and all taxes must be settled by the deadline to avoid penalties.
While the IRS indicates it will automatically provide tax filing extensions and penalty relief for taxpayers on the disaster list, errors may sometimes occur. The IRS advises disaster-affected taxpayers who receive overdue tax filing or payment penalty notices with dates within the extension period to call the phone number provided on the notice to waive penalties.
Apart from Los Angeles County, many other areas across the United States have also faced various types of disasters, resulting in different levels of tax relief.
The IRS list of disaster tax relief shows that all taxpayers in Alabama, Florida, Georgia, the Carolinas, as well as some taxpayers in Alaska, New Mexico, Tennessee, and parts of Virginia can file taxes by May 1st.
Furthermore, individuals and businesses in the entirety of Kentucky and certain areas in West Virginia have until November 3rd to submit their 2024 tax returns and make payments.
Accountants also recommend California taxpayers to check the IRS website for accurate disaster area lists to understand the related tax relief information and determine if their area qualifies for a filing extension.
This article is intended for general information purposes only. The publisher does not offer investment, tax, legal, financial planning, real estate planning, or any other personal finance advice. ◇