Guidelines of IRS and FTB for Eaton Wildfire Victims on Accessing Tax Reliefs

On: January 15, 2025

The January 10^th, California wildfire is one of the tragic events that displaced many families from their homes. Many were affected by the Eaton wildfire, which has caused severe financial and material damage.

In the aftermath, both the Federal and State level organizations, IRS and California FTB, offered tax relief programs to the victims of these organizations. In this blog, we will discuss the relief programs announced by the federal and state-level tax agencies and how an individual can benefit from them.

Possible Measures Taken by IRS and FTB

There are multiple areas that the IRS and FTB both are looking after, and the institutes are aiming to provide that safety net to the survivors of the Eaton fire victims who are suffering the insurmountable pain of losing their homes and having their loved ones in critical condition.

Filing Extension

The need for filing the tax payments that have occurred from January 7^th 2025. Now, after this wildfire incident, taxpayers have time up to October 15^th, 2025, to file for the taxes. The normal due on April 15^th, 2025, will be extended for those individuals who have suffered this tragedy.

People who are facing other disasters and also need tax relief for their annual tax payment can visit tax relief in disaster situation website and check their eligibility criteria.

Has the Eaton wildfire impacted you? Take advantage of the extended tax filing deadline until October 15, 2025. Visit Leading Tax Group for professional help and representation. Call at (800) 900-4250 or write to us at info@LeadingTaxGroup.com.

Casualty Loss Deductions

The IRS and FTB are allowing the victims of the Southern California wildlife fire to have the deduction from their tax bill. By filing for form 4684, which is of casualties and theft, one can offset the financial loss faced in the calendar year from the tax bill.

The victims of the wildfire can get much benefit from the casualty loss deduction, and that will eventually help the person to get the fair market value of the property. Through that they can get some tax credits if the annual tax bill is low for that person.

Areas Where the IRS is Covering for the Victims

The IRS also claims that it might provide a coordinated federal response to those individuals who suffered from the disaster through its FEMA guidelines.

Tax Relief Program for Retirement Plans

For individuals who want to withdraw their retirement savings early to recover the financial loss they are facing, the IRS will provide relief on that 10% penalty. Apart from that, the person can deduct the funds that they have received from the government for necessary family or funeral expenses as other additional tax benefits.

Areas Where the FTB is Covering for the Victims

The California FTB is also reassessing the situation, and as per measuring the situation, the insured loss of property can touch $30 billion.

Providing Property Tax Relief

Property tax relief is very helpful for houses, businesses, and other real estate assets damaged by the wildfires. The FTB provides a reassessment for property tax values that might help them charge less tax on the damaged properties.

An individual can claim for property tax reassessment as part of the disaster relief program that is ensured under section 170 of the FTB.

These are some of the measures that both federal and state authorities are taking to provide a financial cushion to the affected families and businesses.

Learn how property tax relief and reassessments can ease your burden. Contact the California FTB or your local tax advisor to start your claim now.

Get in touch with Leading Tax Group to get tax relief guidance and ease your burden. Call us now at (800) 900-4250 or send an email to info@LeadingTaxGroup.com. You can book an appointment with the experts also. Don’t face this crisis alone!