IRS Announces Tax Relief for Kentucky Taxpayers Impacted by Severe Storms

The IRS has announced that residents and business located in Boyd, Carter, Fayette, Greenup, Henry, Jefferson, Jessamine, Mason, Oldham, Union, and Whitley counties in Kentucky are eligible for extensions because of the severe storms that occurred on April 2, 2024. The tax relief pertains to deadlines that occurred from April 2nd to November 1st, 2024. As a result, businesses and residents have until November 1st to pay and file any taxes that were originally due during this period.  

The tax relief pertaining specifically to a taxpayer engaged in a 1031 Exchange is as follows: 

“Affected Taxpayers”, those who reside or businesses whose principal place of business is in the Covered Disaster Area, are entitled to relief regardless of where the Replacement or Relinquished Properties are located. Affected Taxpayers may choose either the General Postponement relief under Section 6 OR the Alternative relief under Section 17 of Rev. Proc. 2018-58. Taxpayers who do not meet the definition of Affected Taxpayers do not qualify for Section 6 General Postponement relief. 

Option One: General Postponement under Section 6 of Rev. Proc. 2018-58 (Affected Taxpayers only). Any 45-day deadline or 180-day deadline (for either a forward or reverse exchange) that falls on or after the Disaster Date above is postponed to the General Postponement Date. The General Postponement applies regardless of the date the Relinquished Property was transferred (or the parked property acquired by the EAT) and is available to Affected Taxpayers regardless of whether their exchange began before or after the Disaster Date. 

Option Two: Section 17 Alternative (Available to (1) Affected Taxpayers and (2) other taxpayers who have difficulty meeting the exchange deadlines because of the disaster. See Rev. Proc. 2018-58, Section 17 for conditions constituting “difficulty”). Option Two is only available if the relinquished property was transferred (or the parked property was acquired by the EAT) on or before the Disaster Date. Any 45-day or 180-day deadline that falls on or after the Disaster Date is extended to THE LONGER OF: (1) 120 days from such deadline; OR (2) the General Postponement Date. Note the date may not be extended beyond one year or the due date (including extensions) of the tax return for the year of the disposition of the relinquished property (typically, if an extension was filed, 9/15 for corporations and partnerships and 10/15 for other taxpayers).  

Visit for full details on the tax relief from the IRS.  

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