Announcements on Tax Relief Relating to Los Angeles County Wildfires

At a Glance

• We summarize and provide links to various federal, state and county tax benefits — including extensions, relief and assessment reductions — available to residential and commercial taxpayers suffering damage from the wildfires in Los Angeles County.
• The same relief will be made available to individuals and businesses that reside or have a business in any other county that is later added to the disaster area by the Federal Emergency Management Agency.

The Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB) have extended to October 15, 2025, the tax filing and payment deadlines that occurred or will occur from January 7, 2025, through October 14, 2025, for individuals and businesses that reside or have a business in Los Angeles County. The same relief will be made available to individuals and businesses that reside or have a business in any other county that is later added to the disaster area by the Federal Emergency Management Agency (FEMA).

The governor of California has also issued an executive order suspending the filing of certain property tax statements as well as penalties, costs and any interest accrued on late property tax payments until April 10, 2026, for properties located in designated zip codes.

The California Department of Tax and Fee Administration (CDTFA) has extended the tax filing deadline by three months for most CDTFA-administered programs, including sales and use taxes.

The Los Angeles Office of Finance (OFA) has extended the deadline to file city business taxes to April 14, 2025. Additionally, the mayor issued an emergency executive order directing the OFA to waive the 2025 business taxes for businesses in the city of Los Angeles that have been destroyed by the wildfires or that have been impacted for 60 or more consecutive days as a result of the fires.

In addition to the above-mentioned relief, various other tax benefits are available to taxpayers suffering damage from the wildfires.

Federal benefits include the following (this is not an exhaustive list):

1. Claiming a casualty loss deduction, which potentially can be carried back to a prior year to obtain an immediate tax refund;
2. Excluding qualified disaster relief payments from government agencies and employers from gross income;
3. Taking a special disaster distribution from a retirement plan without the 10% early distribution tax;
4. Deferring gain attributable to insurance proceeds received for property loss by reinvesting in similar property in accordance with Internal Revenue Code § 1033 (which applies to involuntary conversions).

State benefits include the following (this is not an exhaustive list):

1. Filing a claim to have property reassessed;
2. Claiming state income tax benefits similar to federal income tax benefits.

For the announcement made by the IRS:

• IRS: California wildfire victims qualify for tax relief; various deadlines postponed to Oct. 15

For announcements made by the FTB, CDTFA and the governor:

• Gov. Newsom: California provides tax relief for those affected by Los Angeles wildfires
• Gov. Newsom extends state property tax deadlines for LA firestorm communities until April 2026
• FTB: Los Angeles County fires — 2024 taxable year disaster
• Gov. Newsom: California to provide tax relief to businesses impacted by Los Angeles wildfires
• CDTFA: State of Emergency Tax Relief

For announcements made by the OFA and the mayor:

• Los Angeles Office of Finance homepage
• Mayor Bass Extends Business Tax Filing Deadline for Businesses Impacted by Wildfires
• Mayor Bass Expands Tax Relief Efforts for Businesses Affected by Fires

For areas designated by FEMA to be in the disaster area:

• Designated Areas: Disaster 4856

Additional Links

• Additional IRS Announcement: IRS announces tax relief for taxpayers impacted by wildfires in California; various deadlines postponed to Oct. 15
• IRS Overview of Disaster Assistance and Emergency Relief: Disaster assistance and emergency relief for individuals and businesses
• IRS Publications on Casualty, Disaster, and Theft Loss
  • About Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)
  • About Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook
• Reduction of Assessed Property Value
  • California State Board of Equalization: Property Tax Disaster Relief
  • Los Angeles County Assessor: Disaster Relief
  • Los Angeles County Assessor: Assessor’s Informational Packet — Disaster Relief, including:
    • Factsheet: Property Relief for Properties Impacted by a Disaster
    • Form: Change of Mailing Address (ASSR-451)
    • FAQs for Wildfires and Other Emergencies’ Implications to Property Assessments / Tax Bills
    • Application for Reassessment: Property Damaged or Destroyed by Misfortune or Calamity (ADS-820)
    • Property Tax Installment Deferral Application: Property Damaged or Destroyed by Misfortune or Calamity (ADS-820.3)
    • Los Angeles County Treasurer and Tax Collector (TTC): Online Resources for Taxpayers Impacted by Wildfires
    • Form: TTC Penalty Cancellation Request (Rev. 1/2025)

For More Information

For further information about property tax relief, you may contact Natalie Mackary.