Tax Relief for Taxpayers Impacted by Terrorist Attacks in Israel: Who Gets It, How to Apply

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Individuals and businesses affected by the Hamas and Israel war will qualify for tax relief from the IRS. This tax relief for taxpayers impacted by terrorist attacks in Israel is not just limited to eligible taxpayers in Israel, but also eligible taxpayers in the Gaza Strip and the West Bank.

Who qualifies for tax relief for taxpayers impacted by terrorist attacks in Israel?

Last week, the IRS issued Notice 2023-71 offering tax relief for taxpayers impacted by terrorist attacks in Israel. The tax relief offers an extension to business owners or people who are unable to meet their tax-filing or tax-payment obligations because of the attacks.

Affected taxpayers will have until Oct. 7, 2024, to file their returns, pay taxes, as well as perform other time-sensitive acts.

“Any taxpayer acts that are due to be performed on or after October 7, 2023, and before October 7, 2024, are postponed until October 7, 2024,” the agency said in the notice.

According to the IRS, the tax relief is available to the following types of taxpayers:

  • An individual with a principal residence, or a business entity with a principal place of business in Israel, the West Bank or Gaza (covered area).
  • An individual associated with a recognized philanthropic or government organization and helping as a relief worker in the covered area.
  • Any individual or business entity whose tax return preparer, or records needed to meet a deadline for postponed acts, are located in the covered area.
  • The spouse of an affected taxpayer is also eligible, provided the two file jointly.
  • An individual who visited the covered area but got killed, injured, or taken hostage because of the recent terrorist attacks.

Do you need to apply for the relief?

The IRS will automatically identify the taxpayers whose principal residence or the principal place of business is located in the covered area on the basis of their previously filed returns. Other taxpayers who qualify for the relief under Notice 2023-71 need to call the IRS disaster hotline at 866-562-5227 to request relief (international callers need to call 267-941-1000).

It must be noted that taxpayers who take advantage of the relief under Notice 2023-71 must put a note on any returns filed or payments made during the extension period and that the return filed or the payment made is in accordance with Notice 2023-71.

The following acts (not limited to) qualify for tax relief under Notice 2023-71:

  • Filing return of income tax, gift tax, excise tax, estate tax, employment tax, generation-skipping transfer tax, or harbor maintenance tax.
  • Paying income tax, harbor maintenance tax, excise tax, gift tax, employment tax, estate tax, or any installment of those taxes.
  • Filing a petition with the Tax Court.
  • Making a contribution to any qualified retirement plan.
  • Filing a claim for any tax refund or credit.

Visit the IRS website for more information on the tax relief for taxpayers impacted by terrorist attacks in Israel.