By Michael Schloss
On October 13, 2023, responding to the terroristic action in the State of Israel that began on October 7, 2023, the Department of the Treasury and the Internal Revenue Service issued Notice 2023-71 providing relief to affected taxpayers including:
- 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 (covered area);
- Any individual affiliated with a recognized government or philanthropic organization who is assisting in the covered area, such as a relief worker;
- Any individual, business entity or sole proprietor, or estate or trust whose tax return preparer is, or records necessary to meet a deadline for postponed acts are, located in the covered area;
- Any spouse of an affected taxpayer, solely with regard to a joint return of two married individuals; and
- Any individual visiting the covered area who was killed, injured, or taken hostage as a result of the October 7, 2023, Terrorist Attacks.
Affected taxpayers now have until October 7, 2024, to perform acts that were otherwise due to be performed on or after October 7, 2023, and before October 7, 2024. The deadline is now postponed until October 7, 2024, for acts that include (this is not an exhaustive list):
- 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;
- 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;
- Making contributions to a qualified retirement plan;
- Filing a petition with the Tax Court;
- Filing a claim for credit or refund of any tax; and
- Bringing suit on a claim for credit or refund of any tax.
The Notice also provides the IRS with additional time, until October 7, 2024, to perform certain actions with respect to affected taxpayers including:
- Assessing any tax;
- 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;
- Collecting by the IRS, by levy or otherwise, of the amount of any liability in respect of any tax; and
- 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.
We stand ready to consult with and assist anyone who needs our help during these terrible and trying times.
The Notice is available at https://www.irs.gov/pub/irs-drop/n-23-71.pdf