The devastating fire in Los Angeles County has shocked the entire world. The fire has consumed homes and businesses with its flames, leaving thousands of families in an unprecedented state of uncertainty.
In hours, flames have consumed entire communities, creating a scene fit for any post-apocalyptic film. Residents who barely had time to evacuate are now faced with the challenge of rebuilding their lives from scratch on still-warm embers.
This tragedy has left people financially and emotionally devastated. What resources are available to those who have lost everything? How can anyone start a new life from scratch?
The IRS has taken extraordinary measures to alleviate financial burdens for affected families. Stay up to date on the latest news if this applies to you.
Extensions on tax returns
That’s right, according to the IRS, individuals and businesses in FEMA-designated areas will have until October 15, 2024 to file their tax returns and make payments that were originally scheduled during the fire.
Also, if you had to make a tax deposit after January 7, 2025 but were late, don’t worry: there will be no penalties if you pay by January 22, 2025. On the other hand, you do not need to contact the IRS to justify anything because it is automatically applied if your address is registered in the areas affected by the disaster.
However, if you do not have an IRS address in this area but have records related to it, you should call 866-562-5227. They’ll be able to assist you with whatever you need!
Extra assistance
The California Tax and Fee Board (CDTFA) has also implemented assistance programs for impacted taxpayers. Those who reported less than $1 million in taxes on their last return will receive automatic extensions until April 30, 2025 for filings and payments due by January 31, 2025.
Property owners who are not eligible for this deadline extension may contact the CDTFA directly for personalized assistance.
How can I claim this extension?
Affected individuals can claim uninsured or unreimbursed disaster-related losses on their 2025 tax returns. To make this claim, you must include the FEMA disaster declaration number 4856-DR on the appropriate return.
Also, if you have a retirement account, you may be eligible for special disaster distributions without incurring the 10% early withdrawal penalty.
While nothing can replace what was lost in the fire, the IRS is making a concerted effort to provide relief to those who have lost everything, and they are attempting to shed some light on this extremely painful situation.
It is critical that those affected take advantage of these opportunities and continue to seek assistance so that recovery and normalcy can return to their lives as soon as possible.
Although the situation does not inspire hope, we will gradually return to normalcy and our homes. Any help is little when these kinds of disasters occur, but luckily, the authorities know how to rise to the occasion.