All Los Angeles County residents are being given Federal and state tax relief in the form of automatic filing extensions in response to the impact of the January fires.
The IRS has announced a Federal Tax Relief Deadline Extension. Individuals and businesses whose permanent address on 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.
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.
Businesses will also have until October 15, 2025 to file. Quarterly payroll and excise tax returns normally due on January 31, April 30, and July 31 have been extended to October 15, 2025. Businesses will not be penalized nor will interest accrue on tax payments during this time.
The California Franchise Tax Board has also extended the deadline to file California tax returns and to pay any tax payments for individuals and businesses anywhere in Los Angeles County to October 15, 2025. Taxpayers do not need to call or write to receive disaster tax relief from the California Franchise Tax Board.
Help for those whose property was directly impacted by fire is also available from the Los Angeles County Property Assessor.
Owners of property that has been damaged or destroyed may file an application for a Decline-in-Value-Review. The filing period is from July 2 through November 30.
Properties with fire damage that exceeds $10,000 in value, may qualify for tax reassessment.”
For more information, including how to apply visit https://assessor.lacounty.gov/
The Assessor’s Office warns that: “scammers will reach out to the homeowners and request for a fee from them to fill out the form for the homeowner. No need to pay someone to do this. Just go to the LA county tax assessor’s website to access the form; we do not charge a fee to fill out the form.”
Disaster relief benefits from FEMA, from other federal programs or from the state of California are tax exempt for both federal and state purposes. Victims of the Palisades Fire may deduct casualty loss as an itemized deduction on their 2025 tax returns.
IRS Toll-Free Disaster Assistance Hotline at 866-562-5227
Beware of Scams
Scams are rampant in the aftermath of the January fires. There have been accounts of fire victims filing for FEMA relief only to find that a scammer has already used their names and addresses, as well as stories of unscrupulous real estate speculators offering to buy property for prices criminally far below market value.
On January 14, 2025, Governor Newsom signed an executive order to prohibit this type of disaster-fueled real estate exploitation. The order prohibits any unsolicited offer to an owner of real property in the Palisades and Eaton fire zip codes to acquire any interest in the real property for an amount less than the fair market value on January 6, 2025. The prohibition is for three months from the date of the order, but that hasn’t prevented predators from seeking prey.
Price gouging, for goods, services and especially real estate and property rentals is also a problem in the parts of Los Angeles County impacted by the fires. Rental increases higher than 10 percent are illegal, but newly released data show more than 1,300 instances of real estate rental price gouging since the state of emergency. This practice is illegal and should be reported. You can file a price gouging complaint: by calling: 800-593-8222, or emailing: info@dcba.lacounty.gov.
The FEMA scam is a long shot for crooks, but that hasn’t stopped them from trying. This scam involves filing for FEMA aid. But in order for this scam to work, the perpetrators need to have the victim’s social security number, phone number, and access to documents that show residency. In most cases, the scam attempt won’t be successful, but for those in need of FEMA assistance it can provide a road block. Once the legitimate property owner begins the application process the system will automatically lock both applications, leading to delays and frustration on the part of the person legitimately in need of aid. FEMA customer service can help sort out the situation, but additional documentation will be required, and that can be a challenge for those who have lost everything. For FEMA assistance visit https://www.fema.gov/. There is also a FEMA Disaster Fraud Hotline: 866-720-5721.
Scammers are also working the paperwork angle, calling phone numbers in the burn areas and offering to fill out paperwork for a fee. No government agency or insurance company charges a fee to apply for disaster relief or make a claim. If in doubt, hang up, and call the agency or company directly.
There are also scammers who offer services like property clearance or repair, only to take the victim’s money and deliver nothing in return. Hiring local workers and contractors who have good reputations in the community is the best way to avoid this scam. Scammers count on fire victims being vulnerable and desperate enough for help that they make bad choices. Taking time to research and sometimes just to breathe before making big decisions is crucially important.
Everyone within the burn zones has been traumatized by this disaster. Those who have lost their homes and businesses are going through enough without having to worry about someone trying to take what little they have left.
