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IRSAs you may recall from our previous post, Hurricane Ian extended certain due dates with respect to tax returns for those affected. There is also relief for certain taxpayers who have an ongoing Section 1031 Exchange. Under the Revenue Procedure 2018-58 (“Rev. Proc. 2018-58”), two sections grant relief to taxpayers involved in a Section 1031 Exchange and who are Affected Taxpayers.

Section 6 Relief

Section 6 of Rev. Proc. 2018-58 (“Section 6 Relief”) states that if a taxpayer has a deadline (the 45-day or 180-day deadline) that falls between the Relief Period prescribed by the Internal Revenue Service (the “IRS”), the taxpayer may extend that deadline date to the end of the Relief Period.

Calculating the Relief Period

Let’s unpack this; the Relief Period is September 23, 2022 through February 15, 2023 as stated in the IRS’s notice FL-2022-19, dated September 29, 2022 and updated on October 5, 2022. Therefore, if the 45-day or 180-day deadlines fall between the Relief Period, the taxpayer may extend such deadline to February 15, 2023. An Affected Taxpayer includes individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the state of Florida.

For example:

Facts: Taxpayer has its principal place of business in Lee County, Florida and is therefore classified as an Affected Taxpayer. Taxpayer relinquished their property on June 15, 2022, the 45-day deadline ends July 30, 2022 and the 180-day deadline ends December 12, 2022.

Analysis: The 45-day deadline does not fall between the Relief Period and, therefore, cannot be extended. However, the 180-day deadline does fall between the Relief Period and can be extended until February 15, 2023.

Section 17 Relief

The other section that provides relief in Rev. Proc 2018-58 is Section 17. Section 17 states that if the relinquished property was transferred or parked on or before the date of the disaster, the 45-day and 180-day deadlines that have not yet lapsed, may be extended 120-days from the last day of such deadline or to the last day of the Relief Period, whichever is later (“Section 17 Relief”).

The date of the disaster was September 23, 2022. Therefore, if the relinquished property was transferred or parked prior to or on September 23, 2022 it may be entitled to Section 17 Relief. Note, in no event may the postponement of the 45-day or 180-day deadlines extend beyond: (a) the due date of the taxpayer’s return (including extensions) or (b) one year.

Let’s look at another example:

Facts: Same facts as above.

Analysis: Here, the 45-day deadline cannot be extended because it has lapsed, meaning the 45-day deadline was prior to the Relief Period. However, the 180-day deadline may be extended because it is within the Relief Period. The below table will help demonstrate Section 17 Relief.

Last Day of 45-day deadline Last day of 180-day Deadline 120 days from Last day of 180-day Deadline Tax Return due by (without extensions) Tax Return due by (with extension) Last Day of General Disaster Extension One Year Limitation Period
07/30/2022 12/12/2022 04/11/2023 03/15/2023 9/15/2023 02/15/2023 06/15/2023

Using the table above, the 180-day deadline may be extended to March 15, 2023 if no extension is filed. Note, that the postponement period (the period in which the deadline date is extended) cannot extend beyond the taxpayer’s due date of their return. If a valid and timely extension is filed, the 180-day deadline may be extended to June 15, 2023. Note, that we cannot use the date the taxpayer’s extension is due because it is more than one (1) year from the date the property was relinquished.

Note, in the above examples, we are assuming the taxpayer is taxed as a partnership for federal income tax purposes and is a calendar year taxpayer. If these facts change, the analysis above will be altered. It is important to note that a taxpayer may elect either Section 6 Relief or Section 17 Relief, but may not elect both.

We highly encourage taxpayers who may be eligible for this relief to contact their Qualified Intermediary and their CPA to confirm eligibility and to ensure all proper forms and elections are filed to take advantage of this disaster relief.

Those needing tax assistance may contact me at or by phone at 239-344-1147.