In Notice 2024-72, the IRS provided relief for individuals and businesses affected by terrorism in the State of Israel beginning on September 30, 2024. The new notice provides additional relief to taxpayers in Israel, as well as the Gaza Strip and the West Bank, over and above the relief the IRS provided in Notice 2023-71 to taxpayers affected by Hamas’ terror actions in Israel beginning on October 7, 2023.  We previously discussed Notice 2023-71 in a prior post here.

Pursuant to Notice 2024-72, the IRS has extended, until September 30, 2025, certain filing, payment, and other time-sensitive acts due to be completed on or after September 30, 2024, and before September 30, 2025.  These acts include, but are not limited to:

  • Filing any return of income tax, estate tax, gift tax, generation-skipping transfer tax, excise tax (other than firearms tax), harbor maintenance tax, or employment tax;
  • Paying any income tax, estate tax, gift tax, generation-skipping transfer tax, excise tax (other than firearms tax), harbor maintenance tax, or employment tax, or any installment of those taxes;
  • Making contributions to a qualified retirement plan;
  • Filing a petition with the Tax Court;
  • Filing a claim for credit or refund of any tax;
  • Bringing suit upon a claim for credit or refund of any tax; and
  • Any other acts identified in Treasury Regulation section 301.7508A-1(c)(1) or Revenue Procedure 2018-58 (December 10, 2018).

Notice 2024-72, however, also extends the time for the IRS to perform certain time-sensitive acts with respect to taxpayers who qualify for relief under Notice 2024-72.  As with eligible taxpayers, the IRS deadline for completing acts due to be completed on or after September 30, 2024, and before September 30, 2025, is extended until September 30, 2025.  These acts include, but are not limited to:

  • Assessing any tax;
  • Giving or making any notice or demand for the payment of any tax, penalty, and interest owed to the IRS;
  • Collecting, by levy or otherwise, tax, penalty, and interest owed to the IRS;
  • Bringing suit by the United States, or any officer on its behalf, with respect to and tax, penalty, or interest owed to the IRS, and allowing a credit or refund of any tax; and
  • Any other acts identified in Treasury Regulation section 301.7508A-1(c)(2).

The taxpayers entitled to relief in Notice 2024-72 are:

  • Any individual visiting Israel, the Gaza Strip, or the West Bank who was killed, injured, or taken hostage as a result of the terroristic action;
  • Individuals whose principal residence is located in Israel, the Gaza Strip, or the West Bank;
  • Any business or sole proprietor with a principal place of business in Israel, the Gaza Strip, or the West Bank;
  • Any individual affiliated with a recognized government or philanthropic organization and who is assisting in Israel, the Gaza Strip, or the West Bank, such as a relief worker;
  • Any individual, business entity or sole proprietor, or estate or trust whose tax return preparer or records necessary to meet a Federal tax deadline for postponed acts are located in Israel, the Gaza Strip, or the West Bank
  • The spouse of any taxpayer described above with respect to the filing of a joint return of two married individuals; and
  • Any individual visiting Israel, the Gaza Strip, or the West Bank who was killed, injured, or taken hostage as a result of the terroristic action.

Notice 2024-72 extends the relief the IRS previously provided in Notice 2023-71.  Notice 2023-71provided similar relief to taxpayers in Israel, the Gaza Strip, and the West Bank affected by Hamas’ terror attacks against Israel on October 7, 2023, extending until October 7, 2024, filing, payment, and time-sensitive acts due to be performed on or after October 7, 2023, and before October 7, 2024.  Any filing, payment, and time-sensitive acts postponed to October 7, 2024, by Notice 2023-71 are now no longer due to be performed until September 30, 2025.

Importantly, Notice 2023-71 only provides relief for taxpayers affected by Hamas’ terror attacks against Israel on October 7, 2023, and Notice 2024-72 only provides relief for taxpayers entitled to relief under Notice 2023-71 and taxpayers affected by terrorism in Israel between September 30, 2024, and September 30, 2025.  Neither Notice provides relief for taxpayers in Israel affected by Hezbollah’s rocket attacks in northern Israel or affected by attacks made by the Houthis in central Israel between October 8, 2023, and September 29, 2024.  While taxpayers might be able to argue that attacks by Hezbollah and/or the Houthis between October 8, 2023, and September 29, 2024, are the result of Hamas’ October 7, 2023, terror attacks on Israel, and therefore subject to the relief in both Notice 2023-71 and Notice 2024-72, we recommend speaking with a professional tax advisor before making that argument.

At Fox Rothschild, our Israel Practice Group assists Israeli companies of any size, from startups to market leaders, and we place special emphasis on supporting Israeli-based companies in developing technology and innovation. Our attorneys work closely with their clients to develop initial business plans as well as structure and negotiate Israeli-related business transactions, including expansion into the U.S. market. As a full-service firm, we counsel Israeli companies on matters of U.S. corporate, employment and tax law as well as national and cross-national litigation and arbitration matters.  For more information, on IRS tice 2024-72 or the firm’s Israel Practice Group, please contact Brian C. Bernhardt or any member of the Fox Rothschild Israel Practice Group.