January 14, 2025 - We hope this message finds you safe during these challenging times. In response to the recent wildfires in Los Angeles County, the California Franchise Tax Board (FTB) and local agencies have announced state tax relief measures to support affected individuals and businesses. (These measures are in addition to the federal response we communicated with you on January 10, 2025.) Below are the key details you need to know:

What Relief Is Available?

The FTB has postponed certain filing and payment deadlines for California taxpayers impacted by wildfires:

• Extended Deadlines: Deadlines originally due between January 7, 2025, and October 15, 2025, are now postponed to October 15, 2025. This includes:
  • Individual income tax returns and payments normally due April 15, 2025. o 2024 Q4 estimated tax payment due January 15, and 2025 Q1, Q2, and Q3quarterly estimated payments due April 15, June 15, and September 15, 2025.
  • Corporate and pass-through entity tax returns and payments normally due March 15, April 15, and May 15, 2025. (Importantly, this extension also covers the mandatory June 15 payment for tax year 2025 to be able to elect the pass-through entity tax)
• Disaster Loss Deduction: Taxpayers may claim disaster-related property losses on either their 2024 or 2025 California tax return. Claiming losses on the 2024 return may provide a quicker refund.
• Property Tax Relief: The Los Angeles County Assessor’s Office offers reassessment programs for properties damaged or destroyed by wildfires. Eligible taxpayers can file Form ADS-820 Application for Reassessment: Property Damaged or Destroyed by Misfortune or Calamity (M&C) within 12 months of the disaster date for reassessment if the damage exceeds $10,000. For assistance with M&C claims, contact relief@assessor.lacounty.gov or call (213) 974-8658.
• Extended Deadlines Available for Sales & Use Tax and Excise Tax: The California Department of Tax and Fee Administration (CDTFA) is offering taxpayers extensions for up to three months to file and pay various taxes and fees administered by the CDTFA, including: sales and use tax, alcoholic beverage tax, cannabis tax, and various fuel taxes among others. Additional information and instructions for applying for these extensions may be found here.
• Extensions Available for Employment Taxes: Employers in Los Angeles and Ventura Counties directly impacted by the fires can request up to a 60-day extension to file state payroll reports or deposit payroll taxes without penalties or interest. The request may be made via calling the Taxpayer Assistance Center or submitted in writing to the EDD, within two months of the original payment or return due date. When requesting an extension, employers must specifically state that the request is made “pursuant to section 1111.5 of the CUIC.” The request must provide detailed information as to why the reports could not be submitted in a timely manner. These requests can be mailed to the following address:
  
  Employment Development Department
  PO Box 826880
  Sacramento, CA 94280-0001
  
  Payroll taxes include: Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI) (includes Paid Family Leave), and California Personal Income Tax (PIT). Additional information for this extension can be found here.

How to Access Relief

Our team is here to guide you through the process of accessing relief or to handle the steps on your behalf. If you prefer to pursue the relief measures independently, here are the key steps:

• To claim a disaster loss deduction, taxpayers should complete the necessary forms for disaster loss claims and include the FEMA declaration number (4856-DR) on their California tax return.
• For property tax relief, eligible taxpayers can apply through the Los Angeles County Assessor’s Misfortune and Calamity Program using Form ADS-820, which must be submitted within 12 months of the disaster date for reassessment if the property damage exceeds $10,000. While no action is required to receive the automatic filing and payment extensions, it is essential to ensure compliance with the October 15, 2025, deadline. Should you need assistance with any part of this process, we are here to help.

Next Steps

If you believe you may qualify for relief under the recently announced measures, please contact your Citrin Cooperman advisor. We are here to timely guide you through these provisions and assist you with receiving the support you may need during this challenging time.