The United States Internal Revenue Service (IRS) recently issued a notice providing tax relief for individuals and businesses affected by Hamas attacks in Israel beginning October 7, 2023, effective for residents and businesses located in Israel, the West Bank and Israel. Gaza.
This relief provides an extended period of time to fulfill certain tax reporting and payment obligations until September 30, 2025.
The relief specifically covers various types of tax obligations, including income tax, estate tax, gift tax, employment tax, and certain other federal tax obligations.
Who is entitled to relief?
Taxpayers eligible for these extensions include:
- People residing primarily in Israel, Gaza or the West Bank.
- People visiting these areas who were killed, injured or taken hostage as a result of the attacks. –
- Businesses or sole proprietorships with a principal establishment in these areas.
- Individuals affiliated with government or philanthropic organizations helping affected areas.
- Individuals, businesses, sole proprietors, estates or trusts whose tax preparers or tax records are located in these areas.
- Spouses file jointly with one of the eligible individuals described above.
What is the relief?
The relief allows eligible taxpayers to defer, until September 20, 2025:
- File income, estate, gift, employment, excise (other than firearms) and certain other taxes. –
- Pay income, inheritance, gifts, employment, excise (other than firearms) and certain other taxes.
- Filing lawsuits for taxes assessed by the IRS or for reimbursement of taxes paid to the IRS.
Exceptions and Additional Considerations
It is important to note that this relief only applies to taxpayers affected by attacks attributed to Hamas on October 7, 2023. Individuals affected by other regional hostilities, such as Hezbollah attacks in northern Israel, Houthi attacks in central Israel or other attacks arising in Yemen, Syria, Iraq and Iran after October 7, 2023, are not covered by this relief. the IRS.
However, taxpayers affected by these other attacks could argue to the IRS that they stem from the October 7, 2023 Hamas attacks and are therefore entitled to similar relief. We recommend that you consult a tax professional before making such claims.
Implications for U.S. and non-U.S. citizens
This relief is not limited to U.S. citizens or green card holders. Any eligible person or entity with a tax obligation to the IRS and a residence or business in the designated regions may benefit from this measure, regardless of their citizenship status or any tax treaty between the United States and Israel.
This relief from the IRS demonstrates its support for those affected by the violence in Israel, providing tax compliance flexibility to affected individuals and entities until they are better positioned to meet their reporting and payment obligations taxes.
Brian C. Bernhardt and Sarah B. Biser of the Fox Rothschild law firm in the United States represent Israeli companies and individuals.
Published by Globes, Israel Business News – fr.globes.co.il – November 13, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
