IRS announces relief for taxpayers affected by attacks in Israel

The IRS, on Friday in Notice 2023-71, announced tax relief for individuals and businesses affected by attacks in Israel. Qualifying taxpayers now have until Oct. 7, 2024, to file certain federal returns, make tax payments, and perform other time-sensitive actions.

In the notice, the IRS provided relief to certain taxpayers who, because of the attacks, may be unable to meet a tax-filing or tax-payment obligation.

A news release said that the notice postpones certain tax filing and payment deadlines that occurred or will occur during the period from Oct. 7, 2023, through Oct. 7, 2024. As a result, affected individuals and businesses will have until Oct. 7, 2024, to file returns and pay any taxes that were originally due during this period, the release said.

According to the release, this relief applies to:

• Individuals who had a valid extension to file their 2022 return due to run out on Oct. 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 Oct. 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. So, these individuals and businesses have both more time to file and more time to pay.
• Quarterly estimated income tax payments normally due on Jan. 16, April 15, June 17, and Sept. 16, 2024.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, April 30, and July 31, 2024.
• Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.
• Retirement plan contributions and rollovers.

The release said the following people and entities qualify for relief:

• 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 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 news release said the IRS will continue to monitor the situation and may provide additional relief.

Earlier this week, the AICPA advocated for and requested IRS relief. According to Eileen Sherr, CPA, CGMA, director—Tax Policy & Advocacy, the AICPA is pleased that IRS quickly provided relief for some directly affected taxpayers and practitioners.

— To comment on this article or to suggest an idea for another article, contact Neil Amato at Neil.Amato@aicpa-cima.com.