IRS Extends Deadlines for Taxpayers Affected By Israel Terror Attacks

A sign outside the Internal Revenue Service building is seen in Washington on May 4, 2021. (Patrick Semansky/AP Photo)

The Internal Revenue Service (IRS) announced a taxpayer relief program for those affected by terror attacks in Israel and has postponed tax deadlines until October next year.

Individuals and businesses affected by the conflict can delay tax deadlines that began on Oct. 7 for one year, the agency announced Friday. As such, taxes due from Oct. 7, 2023, will only have to be paid off by Oct. 7, 2024. To qualify, an individual must have a principal residence or business entity in the “covered area”—Israel, the West Bank, or Gaza.

Sole proprietors whose principal place of business is located in this region will qualify as well. The tax relief is available to “any individual, business or sole proprietor, or estate, or trust whose books, records, or tax preparer is located in the covered area.”

Anyone killed, injured, or taken hostage due to the terrorist attacks, as well as any individual affiliated with a recognized government or philanthropic organization and who is assisting in the covered area, can qualify for the tax relief.

“The IRS automatically identifies taxpayers whose principal residence or principal place of business is located in the covered area based on previously filed returns and applies relief,” the agency said.

According to a notice posted by the IRS, the new rules will be applicable to filing returns or making payments on income tax, estate tax, gift tax, generation-skipping transfer tax, excise tax (other than firearms tax), harbor maintenance tax, and employment tax.

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Individuals making contributions to a qualified retirement plan and filing a claim for credit or refund of any tax can also benefit from the one-year extension.

In addition, certain government acts due to be performed between Oct. 7, 2023, and Oct. 7, 2024, are also postponed until Oct. 7 next year. Such acts include the assessment of any tax, the collection of tax liability by the IRS, and giving notice for the payment of any tax.

Individuals and calendar-year corporations who have a valid extension to file their 2022 returns, due to run out on Oct. 16 this year, will now have more time to make the filing. However, the IRS clarified that even though such individuals and corporations have more time to file tax returns, they must still pay their taxes on time.

Individuals and businesses whose 2023 returns and payments are normally due on March 15 and April 14, 2024, will now have more time to file and pay.

Quarterly estimated income tax payments due on Jan. 16, April 15, June 17, and Sept. 16, 2024, as well as quarterly payroll and excise tax returns due on Oct. 31, 2023, and Jan. 31, April 30, and July 31, 2024, can be postponed till Oct. 7 next year.

Those who are qualified can obtain tax relief by contacting the IRS disaster hotline at 866-562-5227. International callers may call 267-941-1000.

“If an affected taxpayer receives a late filing or late payment penalty notice from the IRS for the postponement period, the taxpayer should call the number on the notice to have the penalty abated.”

US Aid to Israel, Hostage Situation

The tax relief is one among the various measures Washington has taken to benefit people affected by the ongoing conflict in Israel. Bipartisan legislation has been introduced in Congress to appropriate $2 billion for Israel’s Iron Dome system, which helps the Jewish state counter incoming missile barrages from Gaza.

The Israeli Iron Dome missile defense system (L) intercepts rockets (R) fired by the Hamas movement towards southern Israel from Beit Lahia in the northern Gaza Strip as seen in the sky above the Gaza Strip overnight, on May 14, 2021. (Anas Baba/AFP via Getty Images)

The United States ordered the USS Gerald R. Ford Carrier Strike Group to be posted in the eastern Mediterranean Sea, closer to Israel’s shoreline. In addition, the Air Force has deployed additional F-35, F-15, F-16, and A-10 fighter aircraft squadrons to multiple bases in the region.

The Defense Department announced that it was replenishing Israel’s stock of Iron Dome missile interceptors used to stop rocket attacks. The department is also providing additional supplies to the Israel Defense Forces.

The attack on Israel by Hamas on Oct. 7 has so far taken over 1,300 lives, including 22 soldiers, according to an update provided by the Israeli military on Friday. More than 3,000 people have been injured.

The retaliatory military action by Israel has so far killed 1,500 Hamas terrorists, according to the Israeli Defense Forces (IDF). Gaza’s Hamas-backed health ministry reported Thursday that more than 6,600 people have been injured in the region.

Several Americans are believed to be among the people kidnapped by Hamas terrorists during the attack on Israel. At a news briefing on Oct. 12, National Security Council spokesman John Kirby said that “less than a handful” of Americans are thought to have been taken hostage. The U.S. government does not have many details about their conditions.

As the government has decided not to send U.S. troops into the conflict, it currently has no plans to attempt rescuing the American hostages. This task may be fulfilled by Israeli forces. “We have some experts that were already in the country, in part providing advice and counsel on hostage recovery.”

Meanwhile, the U.S. State Department raised its travel advisory to Israel to “Level 3,” which urges Americans to “reconsider travel” to the nation. “Terrorist groups, lone-actor terrorists, and other violent extremists continue plotting possible attacks in Israel and the West Bank and Gaza,” it said.

“Terrorists and violent extremists may attack with little or no warning, targeting tourist locations, transportation hubs, markets/shopping malls, and local government facilities.”