Tax Relief for Disaster Victims - LA, San Diego, Santa Barbara and Ventura Counties

On January 17, IRS announced that victims of the wildfires, flooding, mudflows, and debris flows that took place on December 4, 2017 in parts of California may qualify for tax relief. IRS announced the relief after the Federal Emergency Management Agency (FEMA) issued a recent disaster declaration for taxpayers who reside or have a business in Los Angeles, San Diego, Santa Barbara, and Ventura Counties.

The declaration authorizes IRS to postpone certain filing deadlines that fell on or after December 4, 2017, and before April 30, 2018, and grant affected taxpayers additional time to file through April 30, 2018. This relief may include filing extensions for individual income tax returns normally due on April 17, 2018, and fourth quarter estimated tax payments normally due by January 16, 2018. Penalties on payroll and excise tax deposits due on or after December 4, 2017, and before December 19, 2017, will be abated as long as deposits were made before December 19, 2017.

Should affected taxpayers receive late filing or late payment penalty notices from IRS in relation to an original or extended filing, payment or deposit due date that falls within the postponement period, these taxpayers should call the phone number provided on the notice to have IRS abate the penalty.

Affected taxpayers may claim disaster-related casualty losses on their federal income tax return for either the year in which the event occurred or the prior year, and may also deduct personal property losses not covered by insurance or other reimbursements. Additionally, IRS will waive the usual fees and expedite requests for copies of previously filed returns for affected taxpayers.

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