Extensions for Federally Declared Disasters

Extensions of 45 and 180-day Deadlines Due to Natural Disasters

There have been a number of recent natural disasters affecting the United States, and our hearts go out to all those affected. For affected taxpayers impacted by a disaster, there is relief available in the form of extensions for completing the exchange. See below for the criteria that qualifies taxpayers for one of the below-referenced extensions.

Illinois Severe Storm and Flooding

The IRS has issued extensions for the following area impacted by severe storm and flooding occurring between July 25 and 28, 2022.

Postponement date: February 25, 2023.

Illinois Counties: St. Clair.

(Florida) Hurricane Nicole

The IRS has issued extensions for the following areas impacted by Hurricane Nicole, beginning November 7, 2022.

Postponement Date: March 15, 2023.

Florida Counties: Alachua, Baker, Bradford, Brevard, Broward, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Indian River, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Martin, Miami-Dade, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, and Washington.

New York Severe Winter Storm and Snowstorm

The IRS has issued extensions for the following areas impacted by the storms, beginning November 18, 2022.

Postponement Date: March 15, 2023.

New York Counties: Cattaraugus, Chautauqua, Erie, Genesee, Jefferson, Lewis, Niagara, Oneida, Oswego, St. Lawrence, and Wyoming.

New York Severe Winter Storm

The IRS has issued extensions for the following areas impacted by the winter storm in New York, beginning December 23, 2022.

Postponement Date: April 18, 2023.

New York Counties: Erie and Genesee.

California Severe Winter Storms, Flooding, Landslides and Mudslides

The IRS has issued extensions for the following areas impacted by the storms, flooding, landslides and mudslides in California, beginning December 27, 2022.

Postponement Date: May 15, 2023.

California Counties: Alameda, Butte, Calaveras, Colusa, Contra Costa, Fresno, Glenn, Humboldt, Los Angeles, Marin, Mendocino, Merced, Monterey, Placer, Sacramento, San Benito, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Siskiyou, Sonoma, Trinity, Tulare, Ventura, and Yolo.

California Severe Winter Storms, Flooding, and Mudslides

The IRS has issued extensions for the following areas impacted by the storms, flooding, and mudslides in California, beginning January 8, 2023.

Postponement Date: May 15, 2023.

California Counties: Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo, and Yuba.

Georgia Severe Storms, Straight-line Winds, and Tornadoes

The IRS has issued extensions for the following areas impacted by the storms, straight-line winds, and tornadoes in Georgia, beginning January 12, 2023.

Postponement Date: May 15, 2023.

Georgia Counties: Butts, Henry, Jasper, Meriwether, Newton, Spalding, and Troup.

Alabama Severe Storms, Straight-line Winds, and Tornadoes

The IRS has issued extensions for the following areas impacted by the storms, straight-line winds, and tornadoes in Alabama, beginning January 12, 2023.

Postponement Date: May 15, 2023.

Alabama Counties: Autauga, Barbour, Chambers, Conecuh, Coosa, Dallas, Elmore, Greene, Hale, Mobile, Morgan, Sumter and Tallapoosa.

CRITERIA FOR EXTENSION

The Disaster Date for each event above is in bold. Listed counties are the "Covered Disaster Area."

Affected Taxpayers: An “Affected Taxpayer” includes individuals who live, and businesses whose principal place of business is located in the Covered Disaster Area. Affected Taxpayers are entitled to relief regardless of where the relinquished property or replacement property is located.

Option One (General Postponement under Section 6):

Qualification: Only Affected Taxpayers qualify under this option and may exercise this option regardless of whether the exchange began before or after the Disaster Date.
Extensions: Any 45-day or 180-day deadline that falls on or after the Disaster Date (and before the relevant Postponement Date) is extended to the Postponement Date (only). Deadlines that fall after the Postponement Date are not impacted.

Option Two (Alternative Extension under Section 17):

Qualification: In order to qualify under this option, the taxpayer must (1) be an Affected Taxpayer, or (2) otherwise have difficulty meeting the 45 or 180-day deadlines under the conditions outlined in Rev. Proc. 2018-58, Section 17. This option is only available if the relinquished property was transferred (or the parked property was acquired by the EAT in a reverse exchange) on or before the Disaster Date.
Extensions: Any 45 or 180-day deadline falling on or after the Disaster Date is extended to (1) the Postponement Date, or (2) 120 days from the original deadline, whichever is later. [Note, the date may not be extended beyond one year or the due date (including extensions) of the tax return for the year of the disposition of the relinquished property.] Additionally, any 45-day identification period that falls prior to the Disaster Date is also extended if an identified replacement property is substantially damaged by the disaster.

If you believe you may be entitled to extensions under one of the above options, we strongly recommend that you speak with your tax professional for further guidance. Also, be aware that other counties/parishes may be added to the Covered Disaster Area and/or the extension date may be extended from time to time, even though the IRS does not issue a new notice, so you should check the IRS website for updates periodically.

Please see Revenue Procedure 2018-58, sections 6 and17, and the Notices at: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations; https://www.irs.gov/irb/2018-50_IRB

For more information on extensions for Federally declared disasters, visit our website at: https://www.firstexchange.com/Extensions-for-federally-Declared-Disasters