IRS Notice 2020-23 Provides Some Relief for Taxpayers Affected by the COVID-19 Pandemic
On April 9, 2020, the IRS issued Notice 2020-23 Providing Additional Relief for (“Exchangor" or "Exchanger") Individual or entity desiring an exchange. Taxpayer s Affected by the COVID-19 Pandemic. Affected (“Exchangor" or "Exchanger") Individual or entity desiring an exchange. Taxpayer s performing Section 1031 exchanges are included in the amplified relief. Among other subjects, this Notice extends the 45-day identification period and the 180-day exchange period for taxpayer/exchangers whose deadlines were due on or after April 1, 2020. The deadlines for those exchangers to identify replacement property and/or acquire replacement property are now July 15, 2020. It is important to note that there is no retroactive effect if the 45-day identification deadline and 180-day exchange period were before April 1, 2020.
While this may not be the relief for which many taxpayers may have hoped, Accruit is thankful the IRS acted quickly on the letter request directed to IRS/Treasury in late March by a coalition of many traded associations including the Federation of Exchange Accommodators, of which Accruit is a member. If you have any specific questions about this relief, please contact your client service person at Accruit by calling 800-237-1031.
Read more about why this deadline extension request was made. Accruit continues to monitor 1031 exchange deadline extensions due to COVID-19 on both a state and federal level through the Department of Treasury and IRS.