Extension to 1031 Exchangors
Updates for newly affected areas in Florida due to Hurricane Irma can be found here: https://www.irs.gov/newsroom/help-for-victims-of-hurricane-irma and the journal of accountancy has a great article here: Journal of Accountancy on Irma IRS Relief
Affected by Hurricane Harvey
Revenue Procedure 2007-56 was put in place to allow for time extensions to certain tax deadlines. If the disaster is Presidentially declared then the IRS issues a Notice or News Release indicating the declaration has been made and detailing the areas affected by the disaster. When the taxpayer falls within the designated area or meets certain criteria, the Revenue Procedure provides that certain parties can be an “affected taxpayer” even though you may reside outside the declared disaster area.
In the wake of Hurricane Harvey, the IRS has issued a tax relief notice extending certain filing dates for taxpayers who have been affected by this devastating natural disaster. With news recently of upcoming storms we may find other areas and taxpayers affected and will post those as they become available.
The IRS’ initial Notice dated August 29, 2017 (TX-2017-09), Individuals who reside or have a business in the Texas counties of Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria, and Wharton Counties may qualify for tax relief.
On September 5, 2017, the IRS has updated the notice to also include Colorado, Fayette, Hardin, Jasper, Jefferson, Montgomery, Newton, Orange, Sabine, San Jacinto, Waller, Austin, Batrop, DeWitt, Gonzales, Karnes, Lavaca, Lee, Polk, Tyler, and Walker Counties.
This Notice extends deadlines (inclusive of those deadlines which relate to 1031 Exchanges) that are due to be performed on or after August 23, 2017, and before January 31, 2018 for 120 calendar days or until January 31, 2018, whichever is later.
If you believe you are an affected taxpayer, we strongly recommend that you speak with your tax professional for further guidance. The IRS may update their Notice to include additional Counties and information.
The current notice discussed above can be obtained the the following link: https://www.irs.gov/newsroom/tax-relief-for-victims-of-hurricane-harvey-in-texas.
The Revenue Procedure can be obtained at the following link: https://www.irs.gov/irb/2007-34_IRB/ar13.html#d0e2854
For more information on extensions for Federally Declared Disaster Areas, click the following link –TEC Article – Presidentially Declared Disasters Explained