Throughout the month of May, 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.

OKLAHOMA (OK-2024-01) Severe Storms, Tornadoes, Flooding:

Notice posted May 6, 2024. Relief for individuals and businesses that were affected by severe storms, straight-line winds, tornadoes, and flooding that began on April 25, 2024. Taxpayers now have until September 3, 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.

NEBRASKA (NE-2024-12) Severe Storms, Straight-line Winds, Tornadoes:

Notice posted May 9, 2024. Relief for individuals and businesses that were affected by severe storms, straight-line winds, and tornadoes that began on April 25, 2024. Taxpayers now have until September 3, 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.

OHIO (OH-2024-01) Tornadoes:

Notice posted May 16, 2024. Relief for individuals and businesses that were affected by tornadoes that began on March 14, 2024. Taxpayers now have until September 3, 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.

IOWA (IA-2024-03) Severe Storms, Tornadoes:

Notice posted May 17, 2024. Relief for individuals and businesses that were affected by severe storms and tornadoes that occurred on April 26, 2024. Taxpayers now have until October 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.

TEXAS (TX-2024-13) Severe Storms, Tornadoes, Flooding:

Notice posted May 28, 2024. Relief for individuals and businesses that were affected by severe storms, straight-line winds, tornadoes and flooding that began on April 26, 2024. Taxpayers now have until November 1, 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.

MASSACHUSETTS (IR-2024-154) Severe Storms, Flooding:

Notice posted May 31, 2024. Relief for individuals and businesses that were affected by severe storms and flooding that began on September 11, 2023. Taxpayers now have until July 31, 2024, to file various federal individual and business tax returns and make payments. To learn more about the relief and specific areas affected, see the IRS website 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. 

Legal 1031 Exchange Services LLC does not provide tax or legal advice, nor can we make any representations or warranties regarding the tax consequences of any transaction. Taxpayers must consult their tax and/or legal advisors for this information. Unless otherwise expressly indicated, any perceived federal tax advice contained in this article/communication, including attachments and enclosures, is not intended, or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any tax-related matters addressed herein.
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