Extensions of 45 and 180-day Deadlines due to Natural Disasters
There have been a number of recent natural disasters affecting the southeastern U.S., and our hearts go out to all those affected. For affected taxpayers who started a 1031 exchange prior to or on the day of a disaster event, there is relief available in the form of extensions for completing the exchange.
Hurricane Michael
The IRS has issued extensions for the following areas impacted by Hurricane Michael, beginning October 9, 2018.
Alabama counties: Geneva, Henry, Houston, and Mobile.
Florida counties: Bay, Calhoun, Franklin, Gadsden, Gulf, Hamilton, Holmes, Jackson, Jefferson, Leon, Liberty, Madison, Suwannee, Taylor, Wakulla, and Washington.
Georgia counties: Appling, Atkinson, Bacon, Baker, Ben Hill, Berrien, Bleckley, Brooks, Bulloch, Burke, Calhoun, Candler, Chattahoochee, Clay, Coffee, Colquitt, Cook, Crawford, Crisp, Decatur, Dodge, Dooly, Dougherty, Early, Echols, Emanuel, Evans, Glascock, Grady, Houston, Irwin, Jeff Davis, Jefferson, Jenkins, Johnson, Jones, Laurens, Lee, Macon, Marion, Miller, Mitchell, Peach, Pulaski, Putnam, Quitman, Randolph, Schley, Screven, Seminole, Stewart, Sumter, Telfair, Terrell, Thomas, Tift, Toombs, Treutlen, Turner, Twiggs, Washington, Webster, Wheeler, Wilcox, Wilkinson, and Worth.
Hurricane Florence
The IRS has issued extensions for the following areas impacted by Hurricane Florence, beginning September 7, 2018.
North Carolina counties: Allegany, Alamance, Anson, Ashe, Beaufort, Bertie, Bladen, Brunswick, Cabarrus, Carteret, Chatham, Columbus, Craven, Cumberland, Dare, Davidson, Duplin, Durham, Granville, Greene, Guilford, Harnett, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Madison, Montgomery, Moore, New Hanover, Onslow, Orange, Pamlico, Pender, Person, Pitt, Polk, Randolph, Richmond, Robeson, Rowan, Sampson, Scotland, Stanly, Tyrrell, Union, Wayne, Wilson, and Yancey.
South Carolina counties: Berkeley, Calhoun, Charleston, Chesterfield, Clarendon, Colleton, Darlington, Dillon, Dorchester, Florence, Georgetown, Horry, Jasper, Lancaster, Marion, Marlboro, Orangeburg, Sumter, and Williamsburg Counties.
Virginia counties: Charles City, Halifax, Henry, King and Queen, King William, Lancaster, Nelson, Patrick, Pittsylvania, and Russell Counties and the Independent Cities of Franklin, Newport News, Richmond, and Williamsburg.
Texas Flooding
The IRS has issued extensions for the following areas impacted by flooding in Texas, beginning June 19, 2018.
Texas counties: Cameron, Hidalgo, and Jim Wells.
The Disaster Date for each event is in bold. Listed counties are the "Covered Disaster Area."
Criteria
Both of the following criteria must be met to get the extension under Revenue Procedure 2007-56, section 17: (1) The taxpayer is located in the Covered Disaster Area or is otherwise an affected taxpayer as defined in the Notice, regardless of where the relinquished property or replacement property is located, or otherwise has difficulty meeting the exchange deadlines under the conditions in Revenue Procedure 2007-56, section 17; AND (2) The relinquished property was transferred (or the parked property was acquired by the EAT in a reverse exchange under Revenue Procedure 2000-37) on or before the Disaster Date listed in the Notice.
Extensions
IF the taxpayer meets these criteria, THEN any 45 day or 180 day deadline that falls on or after the disaster date is extended to THE LONGER OF: (1) 120 days from such deadline; OR (2) the extension date listed in the Notice. Note, however, that 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 (typically, if an extension was filed, 9/15 for corporations and partnerships and 10/15 for other taxpayers).
If you believe you are an affected taxpayer, we strongly recommend that you speak with your tax professional for further guidance. And always remember that the IRS may update their Notices to include additional counties and information.
Please see Revenue Procedure 2007-56, section 17, and the Notices at: www.irs.gov/newsroom/tax-relief-in-disaster-situations
For more information on extensions for Federally declared disasters, visit our website at: https://firstexchange.com/Extensions-for-Presidentially-Declared-Disasters