On Friday, October 13, 2023, the IRS announced tax relief for individuals and businesses affected by the terrorist attacks in the State of Israel. IRS Notice 2023-71 provides relief to certain taxpayers who, due to the terrorist attacks, may be unable to meet a tax-filing or tax-payment obligation. These taxpayers now have until October 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions.
The relief provided in Notice 2023-71 applies to the following “qualifying taxpayers” and transactions in these circumstances:
- Individuals who had a valid extension to file their 2022 return due to run out on October 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief. So, these individuals filing on extension have more time to file, but not to pay.
- Calendar-year corporations whose 2022 extensions run out on October 16, 2023. Similarly, these corporations have more time to file, but not to pay.
- 2023 individual and business returns and payments normally due on March 15 and April 15, 2024. These individuals and businesses have both more time to file and more time to pay.
- Quarterly estimated income tax payments normally due on January 16, April 15, June 17 and September 16, 2024.
- Quarterly payroll and excise tax returns normally due on October 31, 2023, and January 31, April 30 and July 31, 2024.
- Calendar-year tax-exempt organizations whose extensions run out on November 15, 2023.
- Retirement plan contributions and rollovers.
“Qualifying taxpayers” include the following:
- Any individual whose principal residence or business entity or sole proprietor whose principal place of business is in Israel, the West Bank or Gaza (the covered area).
- Any individual, business or sole proprietor, or estate or trust whose books, records or tax preparer is located in the covered area.
- Anyone killed, injured, or taken hostage due to the terrorist attacks.
- Any individual affiliated with a recognized government or philanthropic organization and who is assisting in the covered area, such as a relief worker.
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.
Please contact our Tax Compliance Team with any questions.
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