Deadline Relief for Affected Taxpayers in Israel, the West Bank, and Gaza

The IRS has announced, in Notice 2023-71, the postponement of certain tax-related deadlines for taxpayers affected by the October 7, 2023, terroristic action in the State of Israel. The tax relief postpones various tax filing deadlines that began on October 7, 2023. Affected taxpayers for this purpose include:

• 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 and 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 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.

In addition to extending certain tax filing and tax payment deadlines, the relief includes completion of many time-sensitive, tax-related acts described in IRS Revenue Procedure 2018-58 and Treasury Regulation 301.7508A-1(c)(1). Affected taxpayers with a covered deadline on or after October 7, 2023, and before October 7, 2024, will have until October 7, 2024, to complete the acts. This includes filing Form 5500 series returns that are required to be filed on or after October 7, 2023, and before October 7, 2024.

“Affected taxpayer” automatically includes any individuals who live, and businesses whose principal place of business is located, in the covered area based on previously filed returns. Affected taxpayers who reside or have a business located outside the covered area, should contact the IRS to request relief.

Taxpayers should consult with their tax advisor to understand the impact of the deadline relief on their own situation.