The Internal Revenue Service (IRS) has taken a significant step in providing relief for individuals and businesses impacted by the recent terrorist attacks in Israel.
Taxpayers affected by these tragic events now have more time to fulfill their federal tax obligations, including filing returns and making tax payments.
The tax relief measures were announced on IRS.gov, providing detailed guidance for those eligible for assistance.
This tax relief initiative grants affected taxpayers an extended deadline, allowing them until October 7, 2024, to complete various tax-related actions.
It acknowledges the unique challenges these individuals and businesses face due to the recent terrorist attacks and aims to alleviate their financial burdens during this difficult time.
The relief notice postpones several critical tax filing and payment deadlines that fall within the period from October 7, 2023, through October 7, 2024.
This extension is designed to support those struggling to meet their obligations, given the exceptional circumstances. Some of the key aspects of this relief include:
- Extensions for Individual and Corporate Tax Filings: Individuals and calendar-year corporations with valid extensions expiring on October 16, 2023, now have until October 7, 2024, to file their returns.
- However, it’s essential to note that tax payments related to these 2022 returns, originally due on April 18, 2023, are not eligible for this relief. This means that affected individuals and corporations have more time to file rather than to pay their outstanding taxes.
- 2023 Tax Returns and Payments: Individuals and businesses with tax returns and payments typically due on March 15 and April 15, 2024, also benefit from the extended deadline. This extra time applies to both filing and paying.
- Quarterly Estimated Income Tax Payments: The relief covers quarterly estimated income tax payments due on January 16, April 15, June 17, and September 16, 2024.
- Quarterly Payroll and Excise Tax Returns: Quarterly payroll and excise tax returns, usually due on October 31, 2023, January 31, April 30, and July 31, 2024, receive an extension.
- Tax-Exempt Organizations: Calendar-year tax-exempt organizations whose extensions expire on November 15, 2023, are also included in the relief measures.
- Retirement Plan Contributions and Rollovers: Those affected by the recent events will have more time to manage their retirement plan contributions and rollovers.
In addition to these extensions, the IRS has also addressed the penalty for failing to make payroll and excise tax deposits.
If these deposits were due on or after October 7, 2023, and before November 6, 2023, the penalty will be abated, provided the guarantees are made by the latter date.
Who Qualifies for IRS Relief?
The relief is intended for several categories of individuals and entities, including:
- Those whose principal residence or business is in Israel, the West Bank, or Gaza (the covered area).
- Individuals, businesses, sole proprietors, estates, trusts, or tax preparers with books and records in the covered area.
- Anyone injured, killed, or taken hostage due to the terrorist attacks.
- Individuals affiliated with recognized governments or philanthropic organizations who are providing relief in the covered area, such as relief workers.
The IRS will automatically identify and apply relief to eligible taxpayers based on previously filed returns.
However, other qualifying individuals and entities can request replacement by contacting the IRS disaster hotline at 866-562-5227. International callers can reach the IRS at 267-941-1000.
If an affected taxpayer receives a late filing or payment penalty notice for the postponement period, they are encouraged to call the number provided on the information to have the penalty abated.
This tax relief initiative is a testament to the IRS’s commitment to supporting those affected by the recent events in Israel.
It offers them much-needed flexibility during these challenging times. The IRS will continue to monitor the situation and may provide additional relief as necessary.