Extensions of 45 and 180-day Deadlines due to Texas Flooding

The IRS has issued a Notice (TX-2019-02) providing extensions for taxpayers affected by the flooding in Texas that began June 24, 2019 (the “Disaster Date”).

 

Counties in the Covered Disaster Area:  Cameron, Hidalgo and Willacy counties.

 

Criteria

 

For taxpayers involved in 1031 exchanges, both of the following criteria must be met to get the extension under Revenue Procedure 2018-58, 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 2018-58, 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.  

 

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) October 31, 2019 (the extension date listed in the Notice).  Note, however, that the date may not be extended beyond:  (a) 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), or (b) one year.

 

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 Notice to include additional counties and information. 

 

Please see Revenue Procedure 2018-58, section 17, and the Notice at:

 

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-texas-victims-of-severe-storms-and-flooding

For more information on extensions for Federally declared disasters, visit our website at:

https://firstexchange.com/Extensions-for-Presidentially-Declared-Disasters

 

 

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