Federal, State Tax Deadlines Extended For Areas In L.A. County Affected By The Wildfires

Governor Gavin Newsom announced a new executive order on Thursday to suspend penalties, costs, and any interest accrued on late property tax payments until April of 2026 for areas affected by the Southern California wildfires. This order added on to the Franchise Tax Board and IRS tax return delayed deadlines announced earlier this week.

In previous years, tax return delays and suspended tax penalties in areas affected by major disaster in California has been pretty standard. Notable instances have included Butte County residents given significant extensions on tax filings following the Camp Fire in 2018, and multiple Northern California counties given another six months to file following several large wildfires striking residents in the summer of 2021.

More recently in 2023, residents of 55 of California’s 58 counties were given a federal tax return extension of 7 months because of flooding stemming from the multiple atmospheric river storms that struck the state earlier that year. 2022 returns that were due in April 2023 ultimately had a changed deadline until November 2023.

This week, extended deadlines were brought back once again for Los Angeles County residents as a result of the devastating Palisades and Eaton fires. The IRS was first to extend the federal individual and business tax return deadline until October 15, 2025.

“Individuals and businesses whose permanent address of record is anywhere in Los Angeles County, regardless of whether the individual or business was directly impacted by recent wildfires, will qualify for IRS deadline extension relief and automatically receive extra time from the IRS to file returns and pay taxes,” said Congressman Brad Sherman (D-CA) in a press release on Tuesday. “Taxpayers will not be penalized nor will interest accrue on tax payments during this time. Taxpayers do not need to call or write to receive disaster tax relief from the IRS.

“Taxpayers will now have until October 15, 2025 to file their tax returns. January 15th, April 15th, June 16th, and September 15th quarterly income tax payment deadlines have also been extended to October 15, 2025. For businesses – annual tax returns and payments have also been extended until October 15, 2025. Furthermore, quarterly payroll and excise tax returns normally due on January 31st, April 30th, and July 31st have been extended to October 15, 2025 as well. Businesses will not be penalized nor will interest accrue on tax payments during this time.”

Tax deadline extensions

The state Franchise Tax Board followed suit soon after, announcing a state tax return deadline extension to October 15, 2025. More locally, the Los Angeles County Assessor’s Office likewise announced tax relief, adding in property tax relief for those in Los Angeles County whose property has been damaged or destroyed because of the wildfires. Owners whose property was either damaged or destroyed since January 1st can file for a Decline-in-Value-Review later this year. If damages are found to exceed $10,000, the property can undergo a reassessment.

This led to Thursday, when Governor Gavin Newsom announced another tax deadline extension, this time for state property taxes. According to the executive order, penalties, costs, and any interest accrued on late property tax payments will now be suspended until April 10, 2026. However, unlike the wider range of previously announced deadline extensions, state property tax deadlines will only be for the affected zip codes of  90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, and 93536.

“California is here for the survivors who have been impacted by the fire,” added Governor Newsom on Thursday. “Whether streamlining housing or helping to relieve a financial or administrative hardship, we are doing all we can to ensure these communities get the help they need.”

Tax experts told the Globe on Thursday that all the new extensions made this week were to be expected, and may still be extended further past October.

“The sheer size of the destruction these wildfires brought made it when, not if, tax extensions were going to be added in this year,” accountant and tax filing professional Curt Atwood told the Globe Thursday. “It’s not that big of a surprise that we’re seeing the extensions, but for victims, they get fewer annoyances to deal with in the coming months. Plus, many probably lost all their tax information and records in the fire. That’s a lot to sort out in only three months. So the extension is generous.

“And, at least federally, we could see even deadlines extended even further. The IRS extended the already set back deadline from October to November in 2023 because of the floods. We might just see it again. Don’t count on it, but it is possible.”