The Internal Revenue Service (IRS) recently announced extended tax deadlines for individuals and businesses impacted by the recent terrorist attacks in Israel. These taxpayers now have until October 7, 2024, to file federal returns, make tax payments, and complete other time-sensitive tax-related actions.
The relief measures, detailed in Notice 2023-71, apply to taxpayers who may be unable to meet tax filing or payment obligations due to the attacks. The IRS stated that it plans to continue monitoring the situation and may provide additional relief if necessary.
Key Details of Filing and Payment Relief
The notice postpones various tax filing and payment deadlines occurring between October 7, 2023, and October 7, 2024. This means affected individuals and businesses have an extended period to file returns and pay any taxes initially due during this timeframe. The following are included in this extension:
- Individuals with a valid extension to file their 2022 return set to expire on October 16, 2023.
- Calendar-year corporations whose 2022 extensions were also due to expire on October 16, 2023.
- 2023 individual and business returns and payments normally due on March 15 and April 15, 2024.
- Quarterly estimated income tax payments usually due on specific dates in 2024.
- Quarterly payroll and excise tax returns typically due on select dates in 2023 and 2024.
- Calendar-year tax-exempt organizations whose extensions were set to end on November 15, 2023.
Furthermore, penalties for failure to make payroll and excise tax deposits due after October 7, 2023, and before November 6, 2023, will be waived as long as the deposits are made by November 6, 2023.
Eligibility Criteria for Relief
The relief applies to any individual, business, or sole proprietor whose principal residence or place of business is in Israel, the West Bank, or Gaza. It also includes anyone injured, killed, or taken hostage due to the terrorist attacks, and individuals affiliated with recognized government or philanthropic organizations assisting in the affected area.
The IRS will automatically identify eligible taxpayers based on previously filed returns. However, other eligible taxpayers can obtain this relief by calling the IRS disaster hotline.
If an affected taxpayer receives a late filing or payment penalty notice from the IRS for the postponement period, they should call the number on the notice to have the penalty waived.
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