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Disaster Relief Bulletin: September 2023

In September, the IRS introduced tax alleviations, potentially extending the standard 45-day and 180-day durations for active Section 1031 exchanges in specified disaster regions. These reliefs impact both individual and business tax return submissions and payment timelines for impacted taxpayers. The IRS’s ongoing notifications on this matter can be accessed on their website. For a detailed understanding of this relief and related details, refer to the IRS disaster guidance.

South Carolina (IR-2023-163) due to Hurricane Idalia:

  • An official IRS relief notice for South Carolina is pending. However, an informal announcement was made available on the IRS website on September 6, 2023.
  • The disaster started on August 29, 2023, with the extended deadline set to February 15, 2024.

Georgia (GA-2023-02) due to Hurricane Idalia:

  • Announcement date: September 12, 2023.
  • Disaster onset: August 30, 2023. Extended deadline: February 15, 2024.
  • Updates on impacted Georgia counties and relief specifics are available on the IRS website.

Massachusetts (MA-2023-04) and Maine (ME-2023-03) due to Hurricane Lee:

  • Announcement date for both: September 25, 2023.
  • Disaster inception: September 15, 2023. Extended deadline for both: February 15, 2024.
  • Updates on impacted counties in Massachusetts and Maine can be found on the IRS website.

Louisiana (LA-2023-01) following Seawater Intrusion:

  • Announcement date: September 29, 2023.
  • Disaster started on September 20, 2023, with the extended deadline set to February 15, 2024.
  • For an updated county list and relief details, visit the IRS website.

Furthermore, taxpayers affected by these events, including those who initiated their exchange prior to the disaster, might be eligible for more extended relief under Rev. Proc. 2018-58, Section 17.

It’s crucial to note that eligibility for these disaster extensions might differ on individual circumstances. The IRS’s defined disaster zones might also evolve. Therefore, exchangers and their consultants must scrutinize the IRS’s disaster relief advisories. It’s essential to ascertain if you or your clients qualify for this relief, even if situated away from the disaster zone. If eligible, connect with 1031 Exchange Place immediately.