Tips for California Taxpayers as the Wildfire-Extended October 15 Deadline Approaches

California taxpayers who received wildfire-related filing extensions — especially in Los Angeles County — are facing an important date: October 15, 2025. This marks the final deadline for taxpayers whose returns and payments were postponed due to last year’s devastating wildfires.

While the extra time was meant to help affected individuals and businesses recover, it also creates some unexpected tax traps that could result in penalties or missed opportunities if not handled carefully.

At Velin & Associates, Inc., our team of experienced CPAs is helping clients navigate these unique filing challenges to ensure timely, accurate, and penalty-free compliance.

1. Pass-Through Entities and Missing K-1s: Don’t Wait Too Long

Many California pass-through entities — such as S corporations, LLCs, and partnerships — were granted the same wildfire-related postponement, allowing them until October 15, 2025, to file their returns and issue Schedule K-1s to owners.

However, if you are an owner, partner, or shareholder, you cannot wait for your K-1 if it doesn’t arrive in time. The Franchise Tax Board (FTB) and Office of Tax Appeals have made it clear:

Late receipt of a K-1 is not considered reasonable cause for a late-filed return.

✅ What to do:
If you don’t receive your K-1 before the deadline, use your best estimate of your share of pass-through income, deductions, and credits to timely file your return. If later you discover your estimate was off, you can always file an amended return to correct it.

Example:
If you’re a YouTuber or filmmaker with an LLC partnership that hasn’t finalized its K-1 yet, don’t delay filing your individual return. File based on your 2023 share or your own bookkeeping estimate, then amend later if needed.

2. Late Payment Relief: Only for Documented Effort

If you can prove you actively tried to get your K-1 and couldn’t reasonably estimate your income, the FTB may grant late payment relief — but only if you can show proof of your communication and attempts to obtain the information.

That means keeping copies of emails, requests to your CPA or partnership, and any written confirmations that delays were beyond your control.

3. Watch the Mandatory ePay Rule

Because up to four estimated tax payments were postponed to the same October 15 date, many taxpayers are now facing large single payments. Here’s where another issue arises — the mandatory electronic payment (ePay) rule.

Once a taxpayer has made:

• Any single estimated or extension payment greater than $20,000, or
• Filed an original return with tax liability greater than $80,000,

they are required to make all future payments electronically, regardless of the year or amount.

⚠️ The FTB does not grant an automatic waiver of this rule for wildfire-affected taxpayers.

✅ What to do:
If your combined estimated payments exceed $20,000, split them into smaller payments below the threshold when possible. This helps avoid triggering mandatory ePay requirements for future years.

4. Pass-Through Entity (PTE) Tax Election: Double-Check Payments and Years

Eligible pass-through entities that elected to pay the PTE tax under California’s elective pass-through entity program were also given until October 15 to make two important payments:

1. The final payment for 2024 (originally due March 15, 2025), and
2. The June 15 prepayment required to qualify for the 2025 election.

✅ Key Tip:
Ensure that both payments are made for the correct tax year using the right Form 3893 voucher. Mixing up years can lead to misapplied payments and processing delays.

If your entity uses WebPay, make sure each payment is clearly applied to the right year and not combined with other taxes.

5. WebPay Users: Confirm Payments Actually Processed

Taxpayers sometimes assume that a scheduled payment automatically goes through — but mistakes happen. A transposed account number or outdated bank information can cause payment failure.

Unfortunately, the FTB does not always notify taxpayers of failed payments.

✅ Best Practice:
Always verify that your payment has cleared your bank account. If it hasn’t, contact the FTB immediately. Missing or failed payments can result in late payment penalties and loss of relief options.

6. Who Should Pay Special Attention?

These rules can impact a wide range of professionals and business owners, including:

• YouTubers, TikTokers, and creators filing through LLCs or S corporations.
• Shopify or Amazon business owners using pass-through structures.
• Dental and medical practices operating as partnerships.
• Law firms and other professional groups organized as LLPs.
• High net worth individuals with multiple investments or entity ownership.

If you fall into any of these categories, ensuring timely and accurate filing is essential to avoid unnecessary penalties or compliance issues.

How Velin & Associates, Inc. Can Help

At Velin & Associates, Inc., we understand that deadlines like October 15 can feel overwhelming — especially when extensions, pass-through entities, and disaster relief provisions overlap.

Our team of CPAs helps clients:
✅ File returns accurately and on time, even with incomplete K-1s.
✅ Structure payments to avoid ePay complications.
✅ Verify that WebPay transactions are processed correctly.
✅ Maximize available relief for late payments, if applicable.

Whether you’re a CPA for YouTubers, Shopify Store CPA, CPA for Online Commerce, Dentist CPA, CPA for Doctors, Amazon Business CPA, or CPA for High Net Worth Individuals, our professionals provide the tailored support you need to stay compliant and financially protected.

Final Thoughts

As the October 15, 2025 wildfire-related deadline approaches, California taxpayers should act now to file, pay, and confirm their returns. The FTB has made it clear that missing deadlines — even for reasons like late K-1s or failed online payments — can still trigger penalties.

Taking proactive steps today can save you time, stress, and money later.

For more information about our tax planning services, contact us today: visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org