January 11, 2025 - In response to the recent wildfires and straight-line winds impacting Southern California, the IRS has announced disaster relief measures for individuals and businesses located in Los Angeles County.
Below are the key details you need to know:
What Relief Is Available?
The IRS has postponed various tax filing and payment deadlines for affected taxpayers:
- 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.
- 2024 contributions to IRAs and HSAs.
- 2024 quarterly estimated income tax payments due January 15, April 15, June 15, and September 15, 2025.
- Calendar-year partnership, S corporation, and corporation returns.
- Penalty Abatement: Penalties for failing to make payroll and excise tax deposits due on or after January 7, 2025, and before January 22, 2025, will be abated if deposits are made by January 22, 2025.
Additional Tax Relief
Taxpayers in disaster areas may also be entitled to additional tax relief including the ability to:
- Claim uninsured or unreimbursed disaster-related losses on either their 2024 or 2025 federal income tax return.
- Exclude qualified disaster relief payments from gross income.
- Take advantage of special provisions for retirement plan distributions, including hardship withdrawals and spreading taxable income over three years.
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.
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