By Saleem A. Shareef
California Governor Gavin Newsom has announced that the California Franchise Tax Board (FTB) and the California Department of Tax and Fee Administration (CDTFA) have announced tax relief for taxpayers and businesses in Los Angeles County affected by the January 7, 2025, Palisades Fire. (California provides tax relief for those affected by Los Angeles wildfires, California Governor’s Office, 01/11/2025; California to provide tax relief to businesses impacted by Los Angeles wildfires, California Governor’s Office, 01/13/2025.)
Income tax filing and payment extensions.
The FTB income tax relief is announced pursuant to the California Major Disaster Declaration approved by President Joe Biden on January 8, 2025, that resulted in the related IRS postponement of the federal tax filing and payment deadline to October 15, 2025. Taxpayers and businesses in Los Angeles County are granted an extension to October 15, 2025, to file California tax returns on 2024 income and pay taxes normally due between January 7, 2025, through October 15, 2025. The extension applies to:
- individuals whose tax returns and payments are normally due on April 15, 2025;
- quarterly estimated tax payments normally due January 15, April 15, June 15, and September 15, 2025;
- business entities whose corporate or pass-through entity (PTE) tax returns are normally due on March 15 and April 15, 2025;
- PTE elective tax payments normally due on March 15 and June 15, 2025; and
- tax-exempt organization returns normally due on May 15, 2025.
Disaster losses: Also, taxpayers affected by the presidentially declared disaster can claim a deduction for disaster losses. The claim can be made by filing either a 2024 or 2025 tax year return with the name of the disaster written in blue or black ink at the top of the return. An amended return may be filed by those who already have filed this year. The advantage of claiming the disaster loss on a 2024 tax year return is that the FTB can issue a refund sooner. If an affected taxpayer receives a late filing or late payment penalty notice related to the postponement period, the taxpayer should call the number on the notice to have the penalty abated. Further, disaster victims can receive free copies of their state returns to replace those lost or damaged by filing Form FTB 3516 (Request for Copy of Personal Income or Fiduciary Tax Return/Corporation, Exempt Organization, Partnership, or Limited Liability Tax Return) with the name of the disaster written in blue or black ink at the top of the request.
Sales and use and other taxes.
The CDTFA has automatically extended the tax filing deadline for three months for affected taxpayers within Los Angeles County (i.e., previously, taxpayers affected by the Palisades Fire in Los Angeles County were allowed to request an extension of up to three months to file and pay taxes or fees). CDTFA returns and payments due on or before January 31, 2025, are automatically extended to April 30, 2025, for Los Angeles County taxpayers whose last return was for less than $1 million in tax (i.e., includes sales and use tax, as well as most other programs administered by the CDTFA). Also, the automatic extensions for sales and use tax returns and payments to April 30, 2025, are eligible to those taxpayers who owed less than $1 million in sales and use tax on their 2024 third quarter returns. However, annual licensing fees under the Cigarette and Tobacco Products Licensing Act and returns due under the International Fuel Tax Agreement (IFTA) are not extended.
Taxpayers impacted beyond Los Angeles County: Impacted business owners not subject to the automatic extension or who require additional relief are encouraged to contact the CDTFA for assistance. The CDTFA will continue to offer relief and extensions to those impacted beyond Los Angeles County based upon request (see State Tax Update, 01/13/2025).
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