The Internal Revenue Service has issued Notice 2023-71 which grants a postponement until October 7, 2024, for time-sensitive filing and payments by US taxpayers who have been affected by the terrorist attacks in Israel. Not only taxpayers who were directly impacted on 10/7 are granted this postponement, but also individuals whose tax preparer, and/or their books and records are in Israel.
According to the IRS announcement, Notice 2023-71“provides relief under section 7508A of the Internal Revenue Code 1 for persons that the Secretary of the Treasury has determined to be affected by the terroristic action in the State of Israel beginning on October 7, 2023. The Department of the Treasury and the Internal Revenue Service may provide additional relief in the future.”
Before publishing a determination that an event outside the United States constitutes a terrorist action, the Treasury Secretary had to ascertain whether the State and Justice Departments believe that the evidence indicates that the event in question resulted from terrorist activity that was directed against the United States or its allies. Under the procedures which are described in Revenue Procedure 2004-26, “the Secretary has determined that the terrorist attacks beginning on October 7, 2023, against the State of Israel constitute terroristic action” as defined by the code.
The Secretary has determined that the following types of taxpayers are affected taxpayers concerning the October 7, 2023, Terrorist Attacks are eligible for the relief provided in the IRS notice:
- Any individual whose principal residence, and any business entity or sole proprietor whose principal place of business, is located in the State of Israel, Judea and Samaria, or Gaza
- 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 or records necessary to meet a deadline for postponed acts are located in the covered area
- Any spouse of an affected taxpayer, solely concerning a joint return of two married individuals
- Any individual visiting the covered area who was killed, injured, or taken hostage as a result of the October 7, 2023, Terrorist Attacks
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 the relief. Affected taxpayers whose principal residence or principal place of business is not located in the covered area should call the IRS disaster hotline at (866) 562-5227 to request relief. Alternatively, international callers may call (267) 941-1000.
For the full announcement, go to Relief for Taxpayers Affected by the Terroristic Action in the State of Israel.
