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      United States – Federal Filing Commences January 27; California Disaster Relief

      GMS Flash Alert 2025-011 | January 13, 2025

      On January 10, the U.S. Internal Revenue Service (IRS) announced that the “2025 tax season” for individual taxpayers will start January 27, 2025, at which time the IRS will begin accepting and processing individual income tax returns for 2024.1  Tuesday, April 15 is the federal filing deadline.  Please note some state income tax return filing deadlines are different from the federal deadline.

      Also on January 10, the IRS announced that taxpayers in southern California affected by the devastating wildfires and straight-line winds now have until October 15, 2025, to file various individual and business tax returns and make tax payments.2  Readers will recall, in 2023, the IRS had announced a delay in filing deadlines for taxpayers in California due to winter storms, flooding, and mudslides (see GMS Flash Alert 2023-011, January 19, 2023).    

      WHY THIS MATTERS

      Federal Deadline – The January 27 start date for accepting individual tax returns allows the IRS time to perform programming and testing that is critical to helping ensure IRS systems run smoothly.  This also gives individual taxpayers and their tax preparers some lead time in January to get their affairs in order, assemble the requisite documents, and relevant information to facilitate smooth return preparation and filing.

      Taxpayers who live abroad are granted an automatic extension to file until June 16, 2025; nonetheless, any taxes owed are still due by April 15, 2025.   

      Southern California Disaster Relief-Related Deadline – This temporary relief on certain tax compliance obligations for victims of the wildfires in certain parts of California provides additional time for taxpayers to gather their documentation and information and then timely file without being subject to penalties.

      If an affected taxpayer receives a late-filing or late-payment penalty notice from the IRS but has an original or extended filing, payment, or deposit due date that falls within the postponement period, he or she may receive relief for that penalty from the IRS. 

      Federal Filing Season for 2024 U.S. Tax Returns 

      The IRS release – IR-2025-08 – notes that the IRS will not begin accepting tax returns until January 27, 2025. It also notes that the federal filing deadline is Tuesday, April 15, for most taxpayers.

      Extensions of Time to File

      Taxpayers with an April 15 deadline to file their returns may request additional time to file.  The deadline to request a filing extension is April 15, 2025.  With an extension, taxpayers will have until October 15, 2025, to submit their returns; however, they still are required to make an estimated tax payment by April 15.  Please note that states have different procedures for requesting an extension for state tax returns.

      Relief for Taxpayers in Parts of Southern California Affected by the Wildfires

      According to the IRS release – IR-2025-10 (January 10, 2025) – tax relief is provided after a disaster declaration is issued by the Federal Emergency Management Agency (FEMA).  The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.

      The tax relief applies to various tax filing and payment deadlines that occurred from January 7, 2025, through October 15, 2025.  As a result, the October 15, 2025 deadline will now apply to:

      • Individual income tax returns and payments normally due on April 15, 2025.
      • 2024 contributions to IRAs and health savings accounts for eligible taxpayers.
      • 2024 quarterly estimated income tax payments normally due on January 15, 2025, and estimated tax payments normally due on April 15, June 16, and September 15, 2025.
      • Quarterly payroll and excise tax returns normally due on January 31, April 30, and July 31, 2025.
      • Calendar-year partnership and S corporation returns normally due on March 17, 2025.
      • Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
      • Calendar-year tax-exempt organization returns normally due on May 15, 2025.

      In addition, penalties for failing to make payroll and excise tax deposits due on or after January 7, 2025, and before January 22, 2025, will be abated if the deposits are made by January 22, 2025.

      The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area.  These taxpayers do not need to contact the agency to obtain relief.

      For other areas in the country where taxpayers may qualify for filing relief, see the IRS webpage "Tax relief in disaster situations.”

      KPMG INSIGHTS

      Employers and tax professionals that provide tax services for a company’s employees should communicate the tax filing timelines to those employees.  The same applies to those taxpayers in the affected areas in California in terms of the relief under the disaster declaration arising from the wildfires there.

      If taxpayers and/or their employers have concerns about this year’s filing commencement date and deadlines for federal returns or whether they qualify for tax relief related to the disaster declarations issued by FEMA, they should contact their usual tax service provider.  

      Footnotes:

      1  See IR-2025-08 (Jan. 10, 2025), "Free File program now open; Direct File available starting Jan. 27 for taxpayers in 25 states.”  

      2  See IR-2025-10 (Jan. 10, 2025), “IRS: California wildfire victims qualify for tax relief; various deadlines postponed to Oct. 15."

      Also see CA-2025-01, "IRS announces tax relief for taxpayers impacted by wildfires in California; various deadlines postponed to Oct. 15."

       

      Contacts

      Martha Klasing
      Martha Klasing

      Partner, Washington National Tax – Global Mobility Services

      KPMG in the U.S.

      John T. Seery
      John Seery

      Managing Director

      KPMG in the U.S.

      Disclaimer

      The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

      The information contained in this newsletter was submitted by the KPMG International member firm in the United States.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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