January 17, 2023
Occurring between July 25 and 28, 2022, a severe storm accompanied by flooding severely impacted areas of Illinois. Due to the disruption caused by the storm, the IRS issued tax relief pursuant to IRS Notice IL-2022-08, dated November 16, 2022 (the “IRS Notice”), to those who reside or have businesses located in St. Clair County, Illinois:
“Following the disaster declaration issued by the Federal Emergency Management Agency, individuals and households affected by the severe storm and flooding that reside or have a business in St. Clair County qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after July 25, 2022, and before February 15, 2023, are granted additional time to file through February 15, 2023.”
It should be noted that IRS Notice IL-2022-08 may apply to the 45-day and 180-day deadlines for ongoing IRC Section 1031 exchanges.
Per the above, the IRS 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 until February 15, 2023. The Notice also covers extensions of the deadlines for other time-sensitive actions, including those specified in Rev. Proc. 2018-58, which cover the deadlines applicable to Section 1031 “like-kind” exchanges.
“Impacted 1031 Exchangers” – It is important to note that under Rev. Proc. 2018-58, Section 17, expanded relief is available for qualifying taxpayers transacting a 1031 exchange who are domiciled outside of the disaster area.
Please refer to the IRS website to learn more about what the IRS considers an “affected” or “impacted” taxpayer. The disaster relief above is issued and qualified by the Internal Revenue Service and not by your Qualified Intermediary. As stated on the IRS website here, taxpayers qualifying for relief who live outside the disaster area should contact the IRS at 866-562-5227.
Please note that our website features a detailed article which further explains the relief, as well as an extension calculator for those affected taxpayers who qualify for extended relief.
For additional information regarding the above, please visit the IRS disaster relief webpage directly.
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