This blog was last updated on January 13, 2025
The recent wildfires in LA County have caused immense devastation, impacting individuals, families and businesses across the region. If you’re among those affected, we want to acknowledge the extraordinary challenges you’re facing—not just in rebuilding and recovering but also in managing everyday responsibilities.
Regulatory agencies understand the strain that catastrophic events impose on your daily life and as such, offer relief options to help ease the burden. Here are the immediate steps we recommend you take to reduce your current tax obligations, allowing you and your team to focus on recovery.
How to Apply for a Federal Tax Extension
The IRS provides extensions for individuals and businesses unable to meet deadlines associated with furnishing and filing W-2 and 1099 forms due to catastrophic events. Businesses operating in federally declared disaster areas, like LA County, can request extra time to file, particularly if their operations have been disrupted or critical records are unavailable. Both suggested extensions below grant an additional 30 days to furnish tax forms to recipients and file them with the IRS.
To request more time for furnishing tax forms:
Complete, sign, and fax Form 15397 no later than the due date for furnishing the statements to recipients. Send the fax to:
- Internal Revenue Service Technical Services Operation
Attn: Extension of Time Coordinator
Fax: 877-477-0572 (International: 304-579-4105)
To request more time for filing tax forms:
- Online Submission: Complete a fill-in Form 8809 through the FIRE System for an automatic 30-day extension
Note: Online extensions are not available for Forms W-2, 1099-NEC, or additional 30-day extensions
Acknowledgements are provided online if requests are made by the due date of the return - Electronic Filing: Submit Form 8809 electronically in a file formatted according to the IRS specifications in Publication 1220
- Paper Submission: Complete and mail Form 8809 prior to the tax form’s filing deadline
Extensions provide valuable breathing room, allowing you to focus on recovery efforts while meeting your tax obligations.
California Extensions: The State of Emergency Tax Relief Program
The California Department of Tax and Fee Administration (CDTFA) reports that a state of emergency has been officially declared in Los Angeles and Ventura Counties and that their Irvine office remains closed. Once a state of emergency has been declared, impacted taxpayers may file for relief under the State of Emergency Tax Relief Program. Specifically, taxpayers may apply for extensions to their tax return due dates and relief of penalty and interest.
- An extension of up to three months to both file and pay taxes will be offered to taxpayers who are directly affected by the disasters in the specified counties and who, as a result, cannot meet their filing and payment deadlines.
- Relief from interest and penalties may be provided to people who are unable to file their returns and pay taxes and fees when due.
To apply, taxpayers should log in to the CDFA online services webpage. Under the “I want to” column, select “more” then select “submit a relief request.” Once you have completed the request, the CDFA will then send you a confirmation number allowing you to track the status of your request. Alternatively, you can apply by submitting CDTFA-735, Request for Relief from Penalty, Collection Cost Recovery Fee, and/or Interest.
The CDFA also provides procedures for requesting copies of tax records that may be lost during a disaster and an avenue to update account information for businesses that may be required to relocate.
Keep Records of the Impact
Maintain thorough documentation of how the event affected your business operations. This record-keeping not only supports your extension request but also ensures compliance in the event of an audit. Examples of documentation to keep include:
- A detailed log of any physical damage to your facilities or operational disruptions caused by the event.
- A record of inaccessible, destroyed, or lost financial documents.
This evidence may be required if you’re audited or need to justify an extension request.
Reach Out for Help
Tax season can be a stressful time for any business, and when compounded by the challenges of a catastrophic event, it can feel insurmountable. In these moments, it’s important to remember that you don’t have to manage everything on your own. Tax professionals, compliance experts, or even the IRS itself can be valuable resources to help navigate extensions, requirements, and deadlines.
Recovering from a disaster is hard enough. Let these tools and strategies ease your tax compliance burden. Stay informed, plan ahead and take advantage of available resources to ensure you remain compliant while focusing on what matters most: rebuilding and recovering.
Need more support? If you have any questions about applying for federal extensions or navigating state of emergency tax relief programs, the Sovos team is here to assist. Email us at taxregulatoryreporting@sovos.com, and our regulatory experts will assist you in understanding your options and ensuring compliance during this challenging time.
