IRS Issues Notice Granting Extensions to 1031 Exchangors Affected by Hurricane Irma

Revenue Procedure 2007-56 allows for time extensions to certain tax deadlines when the IRS issues a Notice or News Release and if the taxpayer falls within the designated criteria, including individuals who reside in and businesses whose principal place of business is located in the covered disaster area.  The Revenue Procedure provides that you might also be an "affected taxpayer" even if you reside outside the disaster area. 
 

Following Hurricane Irma, the IRS has issued tax relief notices extending certain filing dates for taxpayers in Florida, the U.S. Virgin Islands, and Puerto Rico who have been affected by this devastating natural disaster.  The disaster relief afforded in the IRS' initial Notice for Florida dated September 12, 2017 (FL-2017-04), has been updated, and as of September 15, 2017, now extends to individuals who reside in and businesses whose principal place of business is located in any of the 67 counties in the state.  (See VI-2017-01 for the IRS Notice pertaining to the U.S. Virgin Islands and PR-2017-01 for the Notice pertaining to Puerto Rico.)
 

The Florida Notice extends deadlines (including deadlines relating to 1031 Exchanges) that are due to be performed on or after September 4, 2017, 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.  You and your tax adviser should determine whether you qualify as an “affected taxpayer” and are eligible for the time extensions.  And always, remember that the IRS may update their Notice to include additional covered disaster areas and other information. 
 

To view the Notice, you can click the following link - https://www.irs.gov/newsroom/tax-relief-for-victims-of-hurricane-irma-in-florida.  

To view Revenue Procedure 2007-56, and particularly Section 17 applicable to like-kind exchanges, you can click 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 - https://firstexchange.com/Extensions-for-Presidentially-Declared-Disasters.