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Tax relief for those affected by terrorist attacks in Israel

Tax relief for those affected by terrorist attacks in Israel

The Internal Revenue Service (IRS) has announced tax relief measures for individuals and businesses impacted by the recent terrorist attacks in Israel.

Announcement overview

The IRS has extended the deadline for various federal returns, tax payments, and other time-sensitive tax-related actions for those affected by the terrorist attacks in Israel.

The new deadline is set for Oct. 7, 2024.

"In light of the terrorist attacks, the IRS is providing relief to certain taxpayers who may be unable to meet their tax obligations." - IRS

Filing and payment relief

Postponement Details

The IRS has postponed various tax filing and payment deadlines that fall between Oct. 7, 2023, and Oct. 7, 2024.

As a result, affected individuals and businesses have until Oct. 7, 2024, to file returns and pay any taxes originally due during this period.

Specific deadlines

This extension applies to:

  • Individuals with a valid extension for their 2022 return set to expire on Oct. 16, 2023. NB! However, tax payments related to these 2022 returns, which were due on April 18, 2023, are not eligible for this relief.
  • Calendar-year corporations and tax-exempt organizations with 2022 extensions expiring on Oct. 16, 2023, and Nov. 15, 2023, respectively.
  • 2023 individual and business returns and payments normally due in March and April 2024.
  • Quarterly estimated income tax payments and payroll and excise tax returns for specific dates in 2024.

Additionally, penalties for failing to make payroll and excise tax deposits between Oct. 7 and Nov. 6, 2023, will be waived if deposits are made by Nov. 6, 2023.

Who qualifies for relief?

Eligible individuals and entities include:

  • Those residing or having a business in Israel, the West Bank, or Gaza.
  • Those whose tax-related records or tax preparer is located in the affected areas.
  • Victims of the terrorist attacks.
  • Relief workers affiliated with recognized organizations assisting in the affected areas.

The IRS will automatically identify and provide relief to taxpayers based on previously filed returns. However, other eligible taxpayers can obtain this relief by contacting the IRS.

Pro Tip for US Expats:
US expatriates residing in the affected areas should ensure they have all necessary documentation in place and consider seeking advice from tax professionals familiar with both US and Israeli tax regulations. 

Staying informed and proactive can help mitigate potential tax complications during such challenging times.

Additional Information

If an affected taxpayer receives a late filing or payment penalty notice from the IRS for the postponement period, they should contact the IRS immediately to have the penalty abated.

Ines Zemelman, EA
Founder of TFX