As extreme wildfires continue to engulf parts of California, the Internal Revenue Service has unveiled a slate of measures and concessions to help affected taxpayers.
The federal revenue collection agency made the announcement Friday, following a disaster declaration from the Federal Emergency Management Agency, which at the time applied only to Los Angeles County.
"The same relief will be available to any other counties added later to the disaster area," the IRS said in its statement.
The IRS taxpayers impacted by the fires – for which the economic and financial toll has gone up from a previous $57 billion estimate to as high as $150 billion, potentially making it the costliest disaster in California's history – now have until October 15 to make key federal tax filings and contributions to certain tax-advantaged accounts. Those include but are not limited to:
While taxpayers whose address on record can expect automatic filing and penalty relief, the IRS explained that those who moved after filing their return or residents outside the impacted areas who otherwise qualify for relief may need to contact the agency.
"This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization," it said.
Those affected by the calamity in Los Angeles have the option to claim disaster-related casualty losses on either their 2024 or 2025 federal income tax returns, including uninsured or unreimbursed losses. Additionally, qualified disaster relief payments received from government agencies for personal, family, or property-related expenses are excluded from gross income.
For individuals with retirement accounts, the IRS highlighted other potential steps to ease their financial burdens. Affected taxpayers may be eligible to take disaster-related distributions from their retirement plans or IRAs without incurring the usual 10 percent early withdrawal penalty. These distributions can also be spread out over three years for tax purposes, reducing the immediate financial impact.
Additionally, participants in retirement plans may qualify for hardship withdrawals if they face significant disaster-related expenses, including costs for home repairs, medical bills, or other urgent needs.
Echoing a previous advisory extended to victims of Hurricanes Helene and Milton last year, the IRS emphasized affected taxpayers must take the specific rules governing their retirement plans and accounts into consideration.
"Each plan or IRA has specific rules and guidance for their participants to follow," the IRS said, adding it "may provide additional disaster relief in the future."
Short sellers previously said the company was under investigation, though Roblox denied allegations.
The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.
National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.
Recent data support a measured pace by the Federal Reserve for the year ahead.
Financial advisors are still adding alternatives despite the surge in publicly traded stock prices
From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.
Blue Vault features expert strategies to harness for maximum client advantage.