The Internal Revenue Service today issued Notice 2023-71, which announced tax relief for individuals and businesses affected by the terrorist attacks in the State of Israel. Specifically, covered taxpayers will now have until October 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive, tax-related actions.
Do you qualify for relief?
Notice 2023-71 allows the following persons to claim relief:
- Any individual whose principal residence or business entity or sole proprietor whose principal place of business is in Israel, the West Bank or Gaza.
- Note that the IRS will automatically identify taxpayers whose principal residence or principal place of business is in the covered area based on previously filed returns and will apply relief.
- Any individual, business or sole proprietor, or estate or trust whose books, records or tax preparer is in the covered area.
- Anyone killed, injured, or taken hostage due to the terrorist attacks.
- Any individual affiliated with a recognized government or philanthropic organization and who is assisting in the covered area, such as a relief worker.
Other eligible taxpayers can obtain this relief by calling the IRS disaster hotline at 866-562-5227. Alternatively, international callers may call 267-941-1000.
What is the applicable postponement period?
Notice 2023-71 postpones various tax filing and payment deadlines that occurred or will occur during the period from October 7, 2023, through October 7, 2024, which would, notably, include filings due on October 16, 2023. Taxpayers with filings due during this period will have until October 7, 2024, to file returns and pay any taxes that were originally due during this period.
What filings and payments are covered by the relief?
Notice 2023-71 provides relief for the following U.S. federal tax filing and payment obligations:
- Individuals who had a valid extension to file their 2022 return due to run out on October 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief. So these individuals filing on extension have more time to file, but not to pay.
- Calendar-year corporations whose 2022 extensions run out on October 16, 2023. Similarly, these corporations have more time to file, but not to pay.
- 2023 individual and business returns and payments normally due on March 15 and April 15, 2024.
- Quarterly estimated income tax payments normally due on January 16, April 15, June 17, and September 16, 2024.
- Quarterly payroll and excise tax returns normally due on October 31, 2023, and January 31, April 30, and July 31, 2024.
- Calendar-year tax-exempt organizations whose extensions run out on November 15, 2023.
- Retirement plan contributions and rollovers.
- Penalty for failure to make payroll and excise tax deposits due on or after October 7, 2023, and before November 6, 2023, will be abated as long as the deposits are made by November 6, 2023.
- Certain, other tax-related deadlines. Taxpayers should contact their tax counsel and accountants to confirm all filing and payment deadlines that may be applicable to their circumstances. These deadlines are further discussed in Notice 2023 and Rev. Proc. 2018-58.
Client Alert 2023-229
