The Internal Revenue Service (IRS) has announced a significant tax relief measure for small businesses which have been adversely affected by the recent terrorist attacks in Israel.
The IRS, in its move to support taxpayers grappling with the after-effects of these attacks, has pushed various tax deadlines from October 7, 2023, to October 7, 2024. This extension applies to both individuals and businesses unable to meet their tax commitments during this period.
What this Means for Small Business Owners:
Extended Filing and Payment Deadlines: Small businesses and individuals who had pivotal tax obligations falling between October 7, 2023, and October 7, 2024, can now breathe a sigh of relief. The IRS has provided an extra year to file returns and settle any taxes due in this timeframe. However, it’s essential to note that payments linked to the 2022 returns, which were due on April 18, 2023, are exempt from this relief.
Specific Extensions Include:
Extensions for calendar-year corporations whose 2022 submissions were due by October 16, 2023.
Adjustments for 2023 individual and business returns typically due in March and April 2024.
Pushbacks for quarterly estimated income tax payments and payroll/excise tax returns spread across several 2024 dates.
Penalty Relaxations: For those who missed their payroll and excise tax deposits between October 7 and November 6, 2023, the IRS is offering an olive branch. As long as these deposits occur by November 6, 2023, the penalties will be waived.
Who Benefits from this Relief?
Businesses or sole proprietors based primarily in Israel, West Bank, or Gaza.
Any entity or individual with essential financial records, books, or their tax preparer situated in the affected areas.
Victims of the terrorist attacks, whether injured, killed, or held hostage.
Individuals affiliated with recognized governmental or philanthropic organizations operating in the afflicted regions.
The IRS is proactively identifying those eligible based on their previous filings. Still, if a small business owner or individual believes they qualify and has not been identified, they can reach out directly to the IRS disaster hotline.
Any taxpayer who receives a penalty notice for this postponement period should immediately contact the IRS to have it rescinded.
This tax relief is more than just a financial reprieve. For many small business owners, it represents an acknowledgment of their challenges and offers a buffer against the compounded pressures of a global economy and local adversities. As we move forward, small businesses in the region have one less immediate concern on their plate, allowing them to focus on rebuilding and recovering.
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This article, “IRS Offers Tax Relief to Businesses and Individuals Affected by Israel Terrorist Attacks” was first published on Small Business Trends
The IRS is offering tax relief to businesses affected by the attacks in Israel. Find out about your eligibility and extended deadlines.Read MoreSmall Business NewsSmall Business Trends