As described in our recent eAlert available here, the IRS, in Notice 2020-23, provides relief to any person performing certain “Specified Time-Sensitive Actions” as described in IRS Revenue Procedure 2018-58. That Revenue Procedure is available here. In general, these Specified Time-Sensitive Actions include tax elections and other tasks that are due between April 1, 2020, and July 15, 2020. Notice 2020-23 generally postpones the due date of these actions until July 15, 2020.
Internal Revenue Code Sec. 1031 and the accompanying Treasury Regulations include special rules for “deferred like-kind exchanges.” In general, these rules require that replacement property be identified within 45 days after the closing of the sale of the relinquished property, and the replacement property must be purchased within 180 days after the sale of the relinquished property. Revenue Procedure 2018-58 provides that the identification and purchase of replacement property are Specified Time-Sensitive Actions and contains special rules for these transactions. The special rules include additional time extensions for like-kind exchanges, but it is unclear at this time whether the additional relief is applicable or how the deadlines would be calculated under the circumstances.
For more information regarding federal or state tax issues, please contact William Lentine, Jeffrey Segal, Jay Kennedy, Sean Cook or your Warner relationship attorney. The Tax Law Practice Group will continue to monitor federal and state tax issues as they develop.