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.
California (CA-2023-04) Severe winter storms and flooding:
Notice posted May 4, 2023. Disaster beginning on February 21, 2023. The general postponement date is August 15, 2023. For an updated list of the affected California counties and to learn more about the relief available, see the IRS website here.
Northern Mariana Islands (NMI-2023-01) Typhoon Mawar:
Notice posted May 24, 2023. Disaster beginning on May 22, 2023. The general postponement date is October 2, 2023. For an updated list of affected areas and to learn more about the relief available, see the IRS website here.
Guam (GU-2023-01) Typhoon Mawar:
Notice posted May 24, 2023. Disaster beginning on May 22, 2023. The general postponement date is October 2, 2023. For an updated list of affected areas 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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