Throughout the month of July, 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.

WEST VIRGINIA (WV-2024-04) Severe storms, flooding, landslides, mudslides:

Notice posted July 10, 2024. Relief for individuals and businesses that were affected by severe storms, flooding, landslides, and mudslides that began on April 11, 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.

TEXAS (TX-2024-08) Hurricane Beryl:

Notice posted July 22, 2024. Relief for individuals and businesses in 67 Texas counties, affected by Hurricane Beryl that began on July 5, 2024. Taxpayers now have until February 3, 2025, to file various federal individual and business tax returns. To learn more about the relief and specific areas affected, see the IRS website here.

MISSOURI (MO-2024-14) Severe storms, straight-line winds, tornadoes, flooding:

Notice posted July 29, 2024. Relief for individuals and businesses that were affected by severe storms, straight-line winds, tornadoes, and flooding that began on May 19, 2024. Taxpayers now have until February 3, 2025, to file various federal individual and business tax returns. To learn more about the relief and specific areas affected, see the IRS website here.

KENTUCKY (KY-2024-03) Severe storms, straight-line winds, tornadoes, flooding:

Notice posted July 31, 2024. Relief for individuals and businesses that were affected by severe storms, straight-line winds, tornadoes, landslides, and mudslides that began on May 21, 2024. Taxpayers now have until February 3, 2025, to file various federal individual and business tax returns. To learn more about the relief and specific areas affected, see the IRS website here.

**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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