WASHINGTON -- The Internal Revenue Service on Monday gave residents of California counties hit by wildfires extra time to file tax returns.

The tax agency said those affected by the fires will have until Jan. 31, 2008, to file returns and pay taxes on items due on or after Oct. 21, when the fires began. Those items include the federal withholding tax return, Form 941, normally due Oct. 31 and the estimated tax payment for the fourth quarter, normally due Jan. 15.

Taxpayers in seven counties covered by a presidential disaster declaration are eligible for the delay. They are Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura counties.

Certain penalty deposits due between Oct. 21 and Nov. 5 will also be waived as long as the deposits are made by Nov. 5.

"As California taxpayers start the recovery process, the last thing they should worry about is meeting a tax deadline," said acting IRS commissioner Linda Stiff.

The IRS said its computers identify taxpayers located in the covered disaster area and apply automatic filing and payment relief.

It said that taxpayers in the disaster area also have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year.