The U.S. Department of the Treasury and the Internal Revenue Service announced they are extending the deadline for many administrative acts under the tax law as well as the tax filing and payment deadlines for fiscal year businesses, tax-exempt organizations and certain estates and trusts. This includes 1031 exchanges, which industry associations addressed in a letter to the Treasury Department and IRS, requesting a deadline to like-kind exchanges that are currently underway.
“In an effort to relieve taxpayers during these challenging times, Treasury and the IRS are extending tax deadlines for fiscal year businesses, tax-exempt organizations and more than 270 other tax-related deadlines,” Secretary Steven T. Mnuchin said.
Notice 20-23 specifically provides relief with respect to specified time-sensitive actions.
“Affected taxpayers also have until July 15, 2020, to perform all specified time-sensitive actions, that are due to be performed on or after April 1, 2020, and before July 15, 2020. This relief includes the time for filing all petitions with the Tax Court, or for review of a decision rendered by the Tax Court, filing a claim for credit or refund of any tax, and bringing suit upon a claim for credit or refund of any tax. This notice does not provide relief for the time period for filing a petition with the Tax Court, or for filing a claim or bringing a suit for credit or refund if that period expired before April 1, 2020.”
The National Association of Realtors (NAR) was quick to applaud the IRS’ move.
“During recent weeks, NAR strongly advocated for tax payment deadline extensions – including for 1031-like-kind exchanges and Opportunity Zone investments – as this pandemic left small businesses and independent contractors particularly vulnerable,” said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, in a press release. “On behalf of 1.4 million Realtors across the United States, I want to commend the IRS for moving quickly to protect countless American workers and consumers.
“NAR’s federal advocacy team in Washington has kept in constant contact with the IRS and Treasury Department since this crisis began, and the deadlines extended Thursday will provide immediate relief from some of the disruptions caused by COVID-19,” he continued. “There are 9.5 million jobs in the real estate, rental and leasing sector – while every two home sales generate one American job. NAR is grateful that the IRS is committed to ensuring our industry remains in the best possible position to lead in our nation’s upcoming economic recovery.”