Don't Mess With Taxes

Update, Oct. 1, 2024: The Internal Revenue Service announced today that due to recent terrorist attacks in Israel, the agency is providing additional tax relief to affected individuals and businesses, now postponing until Sept. 30, 2025, a wide range of deadlines for filing federal returns, making tax payments, and performing other time-sensitive tax-related actions. Notice 2024-72, posted today on IRS.gov, covers similar groups but is separate from Notice 2023-71, which originally provided relief to taxpayers affected by the Oct. 7, 2023, attacks in Israel.

Natural disasters aren't the only catastrophes that affect taxes. Manmade tragedies also are taken into consideration.

The Internal Revenue Service today reminded taxpayers affected by terrorist attacks by Hamas on Israel that began on Oct. 7, 2023, that they have until Oct. 7, 2024, to file various federal returns, make tax payments, and take care of other time-sensitive tax-related responsibilities.

Who qualifies? The IRS notes that the tax relief is available to any individual whose principal residence is in Israel, the West Bank, or Gaza.

The tax relief also extends to any business entity or sole proprietor with a principal place of business is in those locations, known collectively as the covered area.

Affected taxpayers who have an address of record in those regions do not need to contact the IRS to get the available tax relief. The IRS says it has automatically identified and will extend the tax relief to these individuals based on addresses shown on previously filed returns.

In addition to applying to individual and business taxpayers in the covered area, the tax relief also extends to —

• Any individual, business or sole proprietor, or estate or trust whose books, records or tax preparer is located in Israel, the West Bank, or Gaza.
• Anyone killed, injured, or taken hostage due to the terrorist attacks.
• Any individual affiliated with a recognized government or philanthropic organization and who is assisting in the covered area, such as a relief worker.

Eligible taxpayers, or their representatives, whose filing address is outside the covered area can obtain relief by calling the IRS disaster hotline toll-free at (866) 562-5227. International callers may call (267) 941-1000.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS for the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

What is the tax relief? In general, the tax relief detailed in IRS Notice 2023-71, which was on IRS.gov on Oct. 13, 2023, gives taxpayers until Oct. 7, 2024, to meet tax-filing or tax-payment obligations, or make other time-sensitive tax-related actions that they were unable to complete due to the October 2023 terrorist attack in Israel.

This includes the postponement of filing and paying any taxes that originally were due during the Oct. 7, 2023, to Oct. 7, 2024, postponement period. This includes —

• 2023 individual and business returns and payments normally due on March 15 and April 15, 2024. These individuals and businesses have both more time to file and more time to pay.
• Quarterly estimated income tax payments normally due on Jan. 16, April 15, June 17, and Sept. 16, 2024.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, April 30, and July 31, 2024.
• Tax year 2023 contributions to IRAs and health savings accounts for eligible taxpayers.
• Other retirement plan contributions and rollovers.

In addition, the tax relief includes the filing of 2022 income tax returns for which individuals, corporations, and tax-exempt organizations had obtained valid extensions. The IRS notes, however, that this is for filing that year's returns only.

These returns do not get the extra time to make any due payments because those tax amounts were due before the attacks occurred. Notice 2023-71 and Rev. Proc. 2018-58 has details on this 2022 tax year situation.

You also might find these items of interest:

• How international taxpayers can get IRS help
• Tax filing resources for U.S. service members
• April 15 is not Tax Day for taxpayers abroad and in 11 states