IRS Announces Tax Relief for Victims of Hurricane Debby

The IRS has issued Tax Relief Notice IR-2024-205 which permits the postponement of tax-related deadlines for taxpayers affected by Hurricane Debby, including the 45-day deadline for identifying potential

replacement properties and the 180-day deadline for completing an exchange under IRC Sec. 1031.

Under this Notice, IRS relief is available to Hurricane Debby victims in all of South Carolina, most of Florida and North Carolina, and part of Georgia.

For more details concerning the affected areas, read the full IRS Notice Here: IRS relief now available to Hurricane Debby victims in all of South Carolina, most of Florida and North Carolina, part of Georgia; various deadlines postponed to Feb. 3, 2025 | Internal Revenue Service

Depending upon the circumstances, there are two possible postponement dates for 45-day and 180-day

deadlines: (1) postponement until the “general postponement” date of February 3rd, 2025; or (2) postponement by 120 days.

Option 1: General Postponement to February 3, 2025 - APPLICABLE TO “AFFECTED TAXPAYERS” ONLY

Under this option, “affected taxpayers” only (those who live in the covered disaster area or whose principal place of business is in the covered disaster area) are entitled to postpone their 45-day and 180- day deadlines to February 3, 2025. This postponement is permitted regardless of the date the Relinquished Property was

transferred.

Option 2: Alternative Postponement – The later of 120 days or February 3, 2025 – APPLICABLE TO

“AFFECTED TAXPAYERS” AND “OTHER TAXPAYERS”

Under this option, “affected taxpayers” and “other taxpayers who have difficulty meeting their exchange

deadlines due to the disaster” (see definition under Section 17 of Rev. Proc 2018-58) are entitled to postpone their 45-day and 180-day deadlines by 120 days or until February 3, 2025 – whichever is later. However, this option is ONLY available if relinquished property was transferred on or before the posted disaster date of

August 1st, 2024 for Florida; August 4th, 2024 for Georgia and South Carolina; and August 5th, 2024 for North Carolina. Under those circumstances, only deadlines that fall on or after the Disaster Date may be entitled to this postponement.

See Revenue Procedure 2018-58, Sections 6 and 17 and check for updates to the scope of the disaster area and the Notices: https://www.irs.gov/newsroom/tax-relief-in-disaster-situation

If you believe you qualify for a disaster related extension, please contact our office.