IRS Announces Tax Relief for Americans Impacted by Attacks in Israel

( – On October 7, Hamas launched a surprise attack on Israel, killing more than 1,000 people and sparking a war as the Jewish State counteracted. It’s been more than a week and the war is still raging on with millions of people at risk. Many have lost their homes and their businesses, or suffered injuries. People who remain trapped in Gaza are struggling with the loss of necessities and have been plunged into darkness as Israel cut power to the region.

The US Internal Revenue Service (IRS) recognizes that there are extenuating circumstances for American taxpayers related to the war and has offered some tax relief.

Who Is Eligible?

On October 13, the IRS announced it was offering relief for businesses and individuals affected by the events taking place in Israel. This includes, per the notice, any individual who lives in the West Bank, Israel, or Gaza, or any sole proprietor or business entity whose principal place of business falls within that region. Additionally, those who were injured, taken hostage, or killed in the attacks as well as any individual, business, trust, or estate, whose tax preparer is in the covered region are eligible. Finally, individuals who are affiliated with a philanthropic organization, including relief workers, or recognized government assisting in the area also qualify.

Types of Relief Available

In order to make it easier on those affected by the terrorist attack, there are several types of relief available for returns and payments due between October 7, 2023, and October 7, 2024. First, businesses and individuals that have deadlines of March 15 or April 15, 2024, will have more time to file and pay.

Those who have quarterly estimated income taxes due from Jan 16, 2024, through September 16, 2024, and payroll and excise taxes due October 31, 2023, through July 31, 2024, will have more time to pay. Tax-exempt organizations that filed extensions which will run out on November 15, 2023, also qualify, as do contributions to and rollovers of retirement plans.

However, it should be noted that those who filed for an extension of taxes due on April 18, 2023, will be granted the additional time to file, but will incur penalties as it does not extend the time to pay. This applies to both businesses and individuals.

The IRS has said it plans to monitor the situation and, if necessary, may provide additional relief to help taxpayers. Those who meet all of the qualifications listed above may receive late payment or filing penalty notices from the agency but are advised to call the number on the papers to have it abated.

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