45 and 180 Day Extensions for Disaster Areas in California and Iowa

From the FEA Government Affairs Committee:  The IRS has issued extensions as follows:

California: Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma and Yolo counties that began on August 14, 2020.

 Iowa: Linn County on August 10, 2020.

Listed counties are the “Covered Disaster Area”. [Please check the IRS disaster website periodically at the address listed below for updates because the FEA does not send out notices for each disaster or for counties added to ongoing disaster extensions.]

Both of the following criteria must be met to get the extension under Revenue Procedure 2018-58, section 17:

(1) The taxpayer is located in the Covered Disaster Area or is otherwise an affected taxpayer as defined in the Notice, regardless of where the relinquished property or replacement property is located, or otherwise has difficulty meeting the exchange deadlines under the conditions in Revenue Procedure 2018-58, section 17; AND

(2) The relinquished property was transferred (or the parked property was acquired by the EAT in a reverse exchange under Revenue Procedure 2018-58) on or before the Disaster Date listed in the Notice. Note that some disasters occur on a single date; others, such as flooding, occur over a period of days and the Disaster Date above is preceded by beginning.

IF the taxpayer meets these criteria, THEN 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 extension date listed in the Notice [which is December 15, 2020]. 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).

Please see Revenue Procedure 2018-58, Section 17, and the Notices shown on https://www.irs.gov/newsroom/tax-relief-in-disaster-situations.

Lynn M. Harkin, CAE,
FEA Executive Director
Federation of Exchange Accommodators
director@1031.org / www.1031.org