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. Review elements of Notice 2023-71 in this blog post.

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

• Any other acts identified in Treasury Regulation section 301.7508A-1(c)(1) or Revenue Procedure 2018-58 (December 10, 2018)
• 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
• Any other acts identified in Treasury Regulation Section 301.7508A-1(c)(1) or Revenue Procedure 2018-58 (December 10, 2018)

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

Importantly, Notice 2023-71 only provides relief for taxpayers affected by Hamas’ terror attacks against Israel on Oct. 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 Sept. 30, 2024 and Sept. 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 Oct. 8, 2023 and Sept. 29, 2024. While taxpayers might be able to argue that attacks by Hezbollah and/or the Houthis between Oct. 8, 2023 and Sept. 29, 2024 are the result of Hamas’ Oct. 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.

For more information about this alert, please contact Brian C. Bernhardt at bbernhardt@foxrothschild.com or any member of the firm’s Israel Practice Group.

This information is intended to inform firm clients and friends about legal developments, including the decisions of courts and administrative bodies. Nothing in this alert should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this alert without seeking the advice of legal counsel. Views expressed are those of the author(s) and not necessarily this law firm or its clients. Prior results do not guarantee a similar outcome.