Throughout the month of September, 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.
SOUTH CAROLINA (IR-2023-163) Hurricane Idalia:
*Please note that the IRS has not posted a formal relief notice for South Carolina; however, the following relief has been announced on the IRS website here.
The informal notice was posted September 6, 2023. Disaster that began August 29, 2023, now has a general postponement date of February 15, 2024. To learn more about the relief available, see the IRS website here.
GEORGIA (GA-2023-02) Hurricane Idalia:
Notice posted September 12, 2023. Disaster that began August 30, 2023, now has a general postponement date of February 15, 2024. For an updated list of affected Georgia counties and to learn more about the relief available, see the IRS website here.
MASSACHUSETTS (MA-2023-04) Hurricane Lee:
Notice posted September 25, 2023. Disaster that began September 15, 2023, now has a general postponement date of February 15, 2024. For an updated list of affected Massachusetts counties and to learn more about the relief available, see the IRS website here.
MAINE (ME-2023-03) Hurricane Lee:
Notice posted September 25, 2023. Disaster that began September 15, 2023, now has a general postponement date of February 15, 2024. For an updated list of affected Maine counties and to learn more about the relief available, see the IRS website here.
LOUISIANA (LA-2023-01) Seawater Intrusion:
Notice posted September 29, 2023. Disaster that began September 20, 2023, now has a general postponement date of February 15, 2024. For an updated list of affected Louisiana 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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