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IRS Further Postpones Due Dates for Taxpayers Affected by Terroristic Action in Israel
(Parker Tax Publishing October 2024)
The IRS provided relief under Code Sec. 7508A for persons that are affected by the terroristic action in the State of Israel throughout 2023 and 2024. For taxpayers who were "Affected Taxpayers" for purposes of Notice 2023-71 (which provided taxpayers affected by the October 7, 2023, terrorist attacks against Israel until October 7, 2024, to perform acts due to be performed on or after October 7, 2023, and before October 7, 2024), this separate determination of terroristic action and grant of relief will also postpone taxpayer acts and government acts already postponed by Notice 2023-71 to September 30, 2025, if the taxpayer is eligible for relief under both notices. Notice 2024-72.
Background
Code Sec. 7508A(a) authorizes the Treasury Secretary to postpone the time (up to one year) for performing certain acts under the internal revenue laws for a taxpayer determined to be affected by a terroristic or military action as defined in Code Sec. 692(c)(2). Rev. Proc. 2004-26 provides procedures for making a determination that a terrorist or military action has occurred under Code Sec. 692(c)(2).
On September 30, 2024, in accordance with the procedures described in Rev. Proc. 2004-26, the Treasury Secretary determined that the terrorist activity throughout 2023 and 2024 against the State of Israel constitutes terroristic action under Code Sec. 692(c)(2).
Notice 2024-72
In Notice 2024-72, the IRS provides relief under Code Sec. 7508A for persons determined by the Treasury Secretary to be affected by the terroristic action in the State of Israel throughout 2023 and 2024 (i.e., affected taxpayers). For affected taxpayers, the time-sensitive deadlines listed in Reg. Sec. 301.7508A-1(c)(1) and Rev. Proc. 2018-58 are postponed from September 30, 2024, to September 30, 2025.
Affected Taxpayers
The Treasury Secretary has determined that the following types of taxpayers are affected taxpayers for purposes of Notice 2024-72:
(1) Any individual whose principal residence, and any business entity or sole proprietor whose principal place of business, is located in the State of Israel, the West Bank or Gaza (i.e., the covered area);
(2) Any individual affiliated with a recognized government or philanthropic organization and who is assisting in the covered area, such as a relief worker;
(3) Any individual, business entity or sole proprietor, or estate or trust whose tax return preparer or records necessary to meet a deadline for postponed acts are located in the covered area;
(4) Any spouse of an affected taxpayer, solely with regard to a joint return of two married individuals; and
(5) Any individual visiting the covered area who was killed, injured, or taken hostage as a result of the terroristic action.
The IRS automatically identifies taxpayers whose principal residence or principal place of business is located in the covered area based on previously filed returns and applies relief. Affected taxpayers whose principal residence or principal place of business is not located in the covered area should call the IRS disaster hotline at (866) 562-5227 to request relief. Alternatively, international callers may call (267) 941-1000.
Postponement of Due Dates with Respect to Certain Taxpayer Acts
Affected taxpayers have until September 30, 2025, to file tax returns, make tax payments, and perform certain time-sensitive acts listed in Reg. Sec. 301.7508A-1(c)(1) and Rev. Proc. 2018-58, that are due to be performed on or after September 30, 2024, and before September 30, 2025. Any taxpayer acts that are due to be performed on or after September 30, 2024, and before September 30, 2025, are postponed until September 30, 2025. These acts include, but are not limited to:
(1) Filing any return of income tax, estate tax, gift tax, generation-skipping transfer tax, excise tax (other than firearms tax), harbor maintenance tax, or employment tax;
(2) Paying any income tax, estate tax, gift tax, generation-skipping transfer tax, excise tax (other than firearms tax), harbor maintenance tax, or employment tax, or any installment of those taxes;
(3) Making contributions to a qualified retirement plan;
(4) Filing a petition with the Tax Court;
(5) Filing a claim for credit or refund of any tax; and
(6) Bringing suit upon a claim for credit or refund of any tax.
Postponement of Due Dates with Respect to Certain Government Acts
Notice 2024-72 also provides the IRS with additional time to perform certain time-sensitive actions with respect to affected taxpayers. Any government acts described in Reg. Sec. 301.7508A-1(c)(2) that are due to be performed on or after September 30, 2024, and before September 30, 2025, are postponed until September 30, 2025. These acts include:
(1) Assessing any tax;
(2) Giving or making any notice or demand for the payment of any tax, or with respect to any liability to the United States in respect of any tax;
(3) Collecting by the IRS, by levy or otherwise, of the amount of any liability in respect of any tax; and
(4) Bringing suit by the United States, or any officer on its behalf, in respect of any liability in respect of any tax; and allowing a credit or refund of any tax.
Interaction with Notice 2023-71
Notice 2023-71 provided taxpayers affected by the October 7, 2023 Terrorist Attacks against the State of Israel until October 7, 2024, to perform acts due to be performed on or after October 7, 2023, and before October 7, 2024. Time-sensitive acts postponed by Notice 2023-71 are not due to be performed until after the beginning of the postponement period provided by Notice 2024-72. Accordingly, taxpayers eligible for relief under Notice 2023-71 who are also eligible for relief under Notice 2024-72 have until September 30, 2025, to perform the time-sensitive acts that were postponed by Notice 2023-71.
Taxpayers eligible for relief under Notice 2023-71 who are not also eligible for relief under Notice 2024-72 had until October 7, 2024, to perform the time-sensitive acts postponed by Notice 2023-71. Government acts that were postponed by Notice 2023-71 until October 7, 2024, are also postponed by this notice until September 30, 2025, for taxpayers that are eligible for relief under Notice 2023-71 and Notice 2024-72.
For a discussion of postponements of certain acts by taxpayers affected by terroristic or military action, see Parker Tax ¶250,125.
Disclaimer: This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer. The information contained herein is general in nature and based on authorities that are subject to change. Parker Tax Publishing guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. Parker Tax Publishing assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein.
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