How can the IRS tell if you’re lying about disaster relief?

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Q. I’m thinking of all the people hurt with the wildfires in California, and I know the IRS often extends tax deadlines for people in disaster areas. How can the IRS tell if a person is really affected or just using it as an excuse to file late?
— Taxpayer

A. Thank you for your question.

Folks in California who are dealing with the wildfires will have a long road ahead.

Rather than being required to file tax returns on April 15, affected people will now have until Oct. 15, the IRS said.

“The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA),” the agency said. “Currently, individuals and households that reside or have a business in Los Angeles County qualify for tax relief.”

But is the IRS really checking?

“The short answer is the IRS cannot tell who is impacted and who is not,” said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.

“The extension is done to help anyone and everyone in the affected area,” he said. “There is not much that the IRS can do, so if this helps even 10% of those impacted, it’s good.”

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This story was originally published in January 2025. 

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