Throughout the month of April, the IRS has issued tax relief that can extend/postpone the 45-day and 180-day deadlines applicable to ongoing Section 1031 exchanges for the below-referenced disaster areas. Each Notice provides universal tax relief that extends the deadline to file various individual and business tax returns and to make tax payments for affected taxpayers. An updated list of posted notices can be found on the IRS website. For background regarding this tax relief and additional considerations, please review the linked IRS disaster guidance.
Arkansas (AR-2023-01) severe storms and tornadoes:
Notice posted April 3, 2023. Disaster beginning on March 31, 2023. The general postponement date is July 31, 2023. For an updated list of the affected Arkansas counties and to learn more about the relief available, see the IRS website here.
Tennessee (TN-2023-02) severe storms, straight-line winds and tornadoes:
Notice posted April 10, 2023. Disaster beginning from March 31 to April 1, 2023. The general postponement date is July 31, 2023. For an updated list of the affected Tennessee counties and to learn more about the relief available, see the IRS website here.
Indiana (IN-2023-02) severe storms, straight-line winds and tornadoes:
Notice posted April 17, 2023. Disaster beginning from March 31 to April 1, 2023. The general postponement date is July 31, 2023. For an updated list of the affected Indiana counties and to learn more about the relief available, see the IRS website here.
Florida (FL-2023-04) flooding and tornadoes:
Notice posted May 1, 2023. Disaster beginning from April 12 to April 14, 2023. The general postponement date is August 15, 2023. For an updated list of the affected Florida counties and to learn more about the relief available, see the IRS website here.
Oklahoma (OK-2023-01) severe storms, straight-line winds and tornadoes:
Notice posted April 24, 2023. Disaster beginning from April 19 to April 20, 2023. The general postponement date is August 31, 2023. For an updated list of the affected Oklahoma counties and to learn more about the relief available, see the IRS website here.
In addition to the General Relief, affected taxpayers and impacted exchangers who started their exchange on or before the disaster may qualify for extended relief pursuant to Rev. Proc. 2018-58, Section 17.
**Eligibility for disaster extensions could vary on a case-by-case basis and the Covered Disaster Areas specified in IRS guidance are often updated over time. Exchangers and their advisors should carefully review any IRS guidance regarding disaster relief and make any determinations accordingly. When considering the impact of these disasters, it is important to determine if you or one of your clients is an affected taxpayer or otherwise eligible for tax relief, even if located far from the disaster area. If so, you should promptly contact your 1031 qualified intermediary.
If you are a current client, your tax advisor believes that you are eligible for this relief, and you have decided to apply it to your exchange, please contact our office at 877-701-1031, ext. 1, to notify us and discuss.
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