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January 15, 2025
IRS and California FTB Extend Filing & Payment Deadlines to October 15 for Los Angeles County Fire Victims
The IRS and the California Franchise Tax Board (FTB) are extending 2024 tax filing and payment deadlines until October 15, 2025, and offering disaster loss relief options for Los Angeles fire and windstorm victims.
If your residence or business address of record is in the declared disaster area, you automatically receive the extension to file and pay taxes. The extensions also apply if your tax or business records are in the affected area.
The extensions also apply to filing and payment deadlines that occur between January 7, 2025, and October 15, 2025, including quarterly payroll and excise tax returns and estimates, 2024 IRA and HSA contributions, calendar-year corporate, fiduciary, partnership and S Corp returns and payments, as well as calendar-year tax-exempt organization returns.
You may claim uninsured or unreimbursed disaster-related losses to your residence or business on tax returns for the year the loss occurred (2025) or for the prior year (2024). More details.
The California FTB follows the IRS guidance on disasters, so you have more time to file and pay your state taxes.
California is also offering a disaster loss deduction, but casualty losses must be applied to future tax years.
If your property was damaged or destroyed, you (the owner) can file an Application for Reassessment of Property Damaged or Destroyed by Misfortune or Calamity (M&C) claim (Form ADS-820) within 12 months of the date the property was destroyed or damaged.
Note: You must have owned the property as of January 1 of the calendar year following the disaster, and estimated damages must be at least $10,000. You may also qualify for property tax relief for the upcoming fiscal tax year.
California cities provide added complexity to taxes
San Francisco and Los Angeles, among other localities, impose a variety of taxes on businesses located in those cities or doing business there. There are many complexities surrounding these taxes, including what constitutes doing business, what types of entities are required to file, and when the returns are due, with dates that often do not correlate with federal or state due dates. While many remember March and April 15 as major tax deadlines, these localities have earlier filing dates.
San Francisco
Persons other than lessors of residential real estate are required to file an Annual Business Tax (ABT) return if, during the tax year, the taxpayer was engaged in business in San Francisco, was not otherwise exempt, and had more than $2,000,000 in combined taxable San Francisco gross receipts.
This filing includes the reporting and payment of (1) the Gross Receipts Tax (GRT) or Administrative Office Tax (AOT); (2) the Homelessness Tax (HGRT) or the Homelessness Administrative Office Tax (HAOT); and (3) the Commercial Rents Tax (CRT).
The Gross Receipts Tax Rate (GRT) depends on the business’s level of gross receipts and nature of business activity.
The Homelessness Gross Receipts Tax (HGRT) (effective January 1, 2019) imposes an additional gross receipts tax of 0.175% to 0.69% on combined taxable gross receipts over $50 million.
The Commercial Rents Tax (CRT) generally applies to businesses leasing commercial space in the City.
As part of Proposition F, San Francisco's Payroll Expense Tax (PET), which was a part of the SF ABT return in the past, has been eliminated, starting with the 2021 filing.
The San Francisco 2021 Annual Business Tax (SF ABT) return is due on February 28, 2022.
A 60-day filing extension is available for the Annual Business Tax (ABT) return.
Los Angeles
The Los Angeles City Business Tax (LACBT) is a license tax for the privilege of conducting business in the City of Los Angeles. It is gross receipts-based and levied against taxpayers that are either located within the city or engaged in business in the city.
The Los Angeles 2021 Business Tax return is due on February 28, 2022 with a possible extension of 45 days.
Neighboring cities such as Beverly Hills and Santa Monica impose their own gross receipts tax on businesses operating within their jurisdictions with differing deadlines (January 31 for Beverly Hills and August 31 for Santa Monica).
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