The Internal Revenue Service (IRS) announced on January 10 that taxpayers in Los Angeles County affected by wildfires and storms since January 7 can now have their federal individual and business tax filing and payment deadlines extended to October 15, 2025. This tax relief applies to areas designated as disaster zones by the Federal Emergency Management Agency (FEMA), currently limited to Los Angeles County. If other counties are declared disaster areas in the future, they will automatically receive the same benefits.
President of the North American Chinese Accountants Association, Zhang Qing, pointed out that the tax relief not only extends the filing deadline but also delays the payment of taxes, providing substantial assistance to residents and businesses affected by the disasters. He expects the federal and California governments to introduce more compensation schemes to alleviate the economic pressure on disaster victims.
Taxpayers can visit the “Tax Relief in Disaster Situations” section on the IRS website to check the latest list of applicable areas and specific regulations.
The “Misfortune and Calamity Property Tax Relief” program by the Los Angeles County government provides property tax relief for residents who have suffered property losses exceeding $10,000. Applications must be completed within one year after the occurrence of the fire and require submission of Form ADS-820 and proof of loss, such as insurance reports, photos, and third-party appraisal reports.
Accountant Wendy Liu reminds that this policy applies to various natural disasters like fires and floods, and it is a long-term measure encouraging residents to apply.
Furthermore, she introduced several ways of post-disaster tax and financial assistance:
– Disaster-affected businesses can enjoy the same income tax deferral policy as individuals but need to prove their business address is in the disaster area.
– The newly signed “Federal Disaster Tax Relief Act” treats disaster relief funds as tax-exempt income, allowing disaster victims to apply for special tax refunds. Residents who have already paid income taxes can submit revised tax returns with a disaster code for the IRS to process refund requests.
– In addition to federal tax relief, the federal government provides $770 in temporary relief aid and subsidies for two weeks of hotel accommodation.
– Moreover, donating goods to recognized non-profit organizations like the Pasadena Humane Society can also qualify for tax deductions.
Liu recommends completing tax filing early with complete documentation to avoid delays in refunds. If documents are damaged or insufficiently prepared, postponement is an option. Citizens should store essential documents in the cloud or email to prevent data loss caused by disasters. The IRS requires tax records to be kept for at least three years, as incomplete records may affect the approval process.
Southern California residents and businesses are facing the challenges of post-disaster reconstruction. Liu urges affected individuals to take advantage of existing policies, while ensuring proper document retention and emergency preparedness. For those impacted by fires, they can also request important records and property records free of charge from the Los Angeles County government by calling 800-201-8999 or emailing [email protected] for assistance.