The fire that have ravaged Los Angeles County have shocked the hearts of the whole world… The fire has devoured homes and businesses with its flames, leaving thousands of families in an unprecedented situation of uncertainty. In hours, flames have consumed entire communities, creating a scene worthy of any post-apocalyptic movie. Residents, many of whom barely had time to evacuate, now have to face the challenge of rebuilding their lives from scratch on the still-warm embers…
This tragedy has devastated people economically (and emotionally too…) But, what resources are available for those who have lost everything? How do can anybody start a new life from scratch?
Amidst this sea of doubts and this panorama, the IRS has implemented extraordinary measures to alleviate the financial burdens of affected families, so we are going to tell you all the news below so that you are up to date if this is your case.
Extensions on tax returns
That’s right, and according to the IRS, individuals and businesses located in areas designated by the Federal Emergency Management Agency (FEMA) will have an extension until October 15, 2024 to file their tax returns and make payments originally scheduled during the fire period.
Also, if you had to make a tax deposit after January 7, 2025 and you were late, don’t worry: there will be no penalties if you pay before January 22, 2025. On the other hand, you don’t need to call the IRS to justify anything due to it is automatically applied if your address is registered in the areas affected by this disaster.
But, if you do not have an IRS address in this area, but your records are related to that area, it is best to call 866-562-5227. They will be able to help you with whatever you need!
Extra assistance
California Tax and Fee Board (CDTFA) has also implemented support measures for affected taxpayers. Those who reported less than $1 million in taxes on their last return will automatically receive extensions until April 30, 2025 for filings and payments scheduled by January 31, 2025.
And, for property owners who are not eligible for this extension of deadlines, they can contact the CDTFA directly for personalized assistance.
How can I claim this extension?
Affected people have the option to claim uninsured or unreimbursed disaster-related losses on their 2025 tax return. To make this claim, it is essential that you include the FEMA disaster declaration number 4856-DR on the applicable return.
Also, if you have a retirement account, you may qualify for special disaster distributions without having to pay the 10% penalty for withdrawing money early.
While nothing will bring back what was lost in the fire, the IRS is making a great effort to give a break to those who have lost everything, so they are trying to shed some light on this very painful situation. It is now essential that those affected take advantage of these opportunities and continue to seek support so that recovery and normality return to their lives as soon as possible.
Although the situation does not invite hope, little by little we will return to normality and to our homes. Any help is little when these kinds of disasters occur, but luckily the authorities are knowing how to rise to the occasion