Tag #Wildfire Tax Relief

What are the immediate implications of the expiring federal tax law for wildfire victims, particularly those affected by recent fires such as the 2025 LA fires?

In December 2024, Congress passed a law making many wildfire settlements tax-free until the end of 2025. This impacts victims of wildfires like the 2025 LA fires, where litigation often takes years, creating tax issues long before settlements. The law's expiration leaves many uncertain about future tax liabilities.