Final regulations: Mandatory 60-day postponement of tax deadlines, federally declared disasters
Guidance for individuals, businesses, and relief workers within a federally declared disaster area
Guidance for individuals, businesses, and relief workers within a disaster area
The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9950) relating to a mandatory 60-day postponement of certain time-sensitive tax-related deadlines by reason of a federally declared disaster.
The final regulations [PDF 259 KB] (published in the Federal Register on June 11, 2021) provide guidance for individuals who reside in, were injured or killed 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.
Section 7508A(d)—added to the Code by the Taxpayer Certainty and Disaster Tax Relief Act of 2019, enacted as Division Q of the Consolidated Appropriations Act, 2020 (Pub. L. No. 116-94)—provides a mandatory 60-day postponement period in instances of federally declared disasters.
In January 2021, the IRS and Treasury proposed regulations in an effort to clarify section 7508A(d) specifically regarding:
- What time-sensitive acts are to be postponed
- How is the mandatory 60-day postponement period to be calculated when the declaration specified in section 7508A(d) does not contain an incident date
The preamble to today’s final regulations states that the regulations under section 7508A and under section 165 are revised to clarify the definition of the term “federally declared disaster.”
In addition, today’s final regulations modify Prop. Reg. section 301.7508A-1(g)(4)(iii), Example (3), in an effort to “better illustrate the calculation of the mandatory 60-day postponement period and to correct typographical errors.”
According to the preamble, no other changes have been adopted.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.