Relief for U.S. Taxpayers Affected by the Terroristic Action in the State of Israel
December 6, 2023In IRS Notice 2023-71 (the "Notice"), the Internal Revenue Service announced tax relief for U.S. individuals and businesses affected by the terrorist attacks in the State of Israel. These taxpayers now have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions.
Filing and Payment Relief
The Notice postpones various tax filing and payment deadlines that occurred or will occur during the period from Oct. 7, 2023, through Oct. 7, 2024 (the "Postponement Period"). 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 the Postponement Period. This includes, among other things:
- Returns for individuals who had a valid extension to file their 2022 return due to run out on Oct. 16, 2023.
- Returns for calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023.
- 2023 individual and business returns and payments normally due on March 15 and April 15, 2024.
- 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.
- Returns for calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.
- Retirement plan contributions and rollovers.
Who Qualifies 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 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. Other eligible taxpayers can obtain this relief by calling the IRS disaster hotline at 866-562-5227. Alternatively, international callers may call 267-941-1000.
For more information on Tax or Israel related matters, please contact:
Yariv C. Ben-Ari at +1 212 592 1440 or [email protected]
Fred R. Green at +1 212 592 5910 or [email protected]
Louis Tuchman at +1 212 592 1490 or [email protected]
© 2023 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.