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.

ISRAEL (IR-2024-90) Terrorist Attacks:
Notice posted April 3, 2024. Relief for individuals and businesses affected by the terrorist attacks in the State of Israel. Taxpayers now have until October 7, 2024, to file various federal individual and business tax returns. To learn more about the relief and specific areas affected, see the IRS website here.

Note: In Notice 2023-71, posted Oct. 13, 2023 on IRS.gov, the IRS provided relief to taxpayers who, due to the terrorist attacks, may be unable to meet a tax-filing or tax-payment obligation, or may be unable to perform other time-sensitive tax-related actions.

MAINE (ME-2024-05) Severe Storms, Flooding:
Notice posted April 4, 2024. Relief for individuals and businesses that were affected by severe storms, landslides, and mudslides that began on January 9, 2024. Taxpayers now have until July 15, 2024, to file various federal individual and business tax returns. To learn more about the relief and specific areas affected, see the IRS website here.

RHODE ISLAND (RI-2024-05 & RI-2024-06) Severe Storms, Flooding:
Notices posted April 4, 2024. Relief for individuals and businesses that were affected by severe storms and flooding that began on December 17, 2023, and January 9, 2024. Taxpayers now have until July 15, 2024, to file various federal individual and business tax returns. To learn more about the relief and specific areas affected, see the IRS website here and here.

In addition to any applicable 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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