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Proposed regulations: Mandatory 60-day postponement of tax deadlines, federally declared disasters

Mandatory 60-day postponement of tax deadlines

The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register proposed regulations (REG-115057-20) relating to a mandatory 60-day postponement of certain time-sensitive tax-related deadlines by reason of a federally declared disaster.

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The proposed regulations [PDF 258 KB] (eight pages as published in the Federal Register on January 13, 2021) would provide guidance for individuals who reside in or were killed or injured in a disaster area, businesses that have a principal place of business in a disaster area, relief workers who provide assistance in a disaster area or any taxpayer whose tax records necessary to meet a tax deadline are located in a disaster area.

Comments and requests for a public hearing must be received by March 15, 2021.

Overview

Section 7508A(d)—added to the Code by the Taxpayer Certainty and Disaster Tax Relief Act of 2019, enacted as Division Q of the Further Consolidated Appropriations Act, 2020 (Pub. L. No. 116-94)—provides a mandatory 60-day postponement period in instances of federally declared disasters.

According to the preamble, the IRS and Treasury determined proposed regulations are required because the text of section 7508A(d) “is ambiguous” in at least two respects.

  • First, it is unclear what time-sensitive acts are to be postponed.
  • Second, it is unclear how the mandatory 60-day postponement period is to be calculated when the declaration specified in section 7508A(d) does not contain an incident date.

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