Determining the Postponement Period Under § 301.7508a-1(d)(1)

The United States tax code provides mechanisms for delaying tax deadlines when unexpected events disrupt the lives of taxpayers. Treasury Regulation § 301.7508A-1 outlines how the Internal Revenue Service (IRS) can postpone deadlines for those impacted by federally declared disasters. This regulation establishes who is eligible for relief, which specific deadlines can be moved, and how the length of the postponement is determined. Understanding these provisions is helpful for taxpayers navigating their obligations during a difficult time.

Defining an Affected Taxpayer

To receive a postponement, a person or business must qualify as an “affected taxpayer.” This designation is tied to location within a “Federally declared disaster area,” an area formally recognized by the President as warranting federal assistance. An individual whose main home or a business whose principal place of business is located within the geographic boundaries of the disaster area specified by the IRS is an example.

The definition extends beyond those who live or work in the disaster zone. An individual who is killed, injured, or goes missing as a direct result of the disaster is also considered an affected taxpayer. This also applies to relief workers assisting in the covered area, provided they are affiliated with a recognized government or philanthropic organization, such as the American Red Cross.

A category includes individuals or businesses whose tax records are located in the disaster area. For instance, if a business operates outside the disaster zone but its accounting firm, which holds all its financial documents, is inside the affected area, that business qualifies for relief. This provision also covers estates and trusts if their necessary records are in the disaster area. The spouse of an affected taxpayer is also eligible concerning a joint income tax return.

Time-Sensitive Acts Postponed

The relief provided under the regulation allows for the postponement of numerous “time-sensitive acts,” and the IRS has broad authority to delay deadlines for up to one year. The primary act postponed is the filing of most tax returns, including:

• Individual income tax returns (Form 1040 series)
• Corporate income tax returns (Form 1120 series)
• Returns for partnerships and S corporations
• Employment and certain excise tax returns

Beyond filing returns, the deadline for paying the tax due with those returns is also postponed. If a disaster occurs before the April 15th filing deadline, an affected taxpayer will have additional time to file their return and pay any income tax they owe for the previous year without penalty. This relief also applies to estimated tax payments that fall within the postponement period. For example, if a quarterly estimated tax payment is due on June 15 and the disaster postponement period includes that date, the payment is not due until the end of the specified period.

The scope of postponed acts extends to other financial decisions. Contributions to Individual Retirement Arrangements (IRAs) and Health Savings Accounts (HSAs) for a given tax year can be made up until the postponed filing deadline. Other actions include filing a petition with the U.S. Tax Court or filing a claim for a credit or refund. The complete list of eligible acts is detailed in Revenue Procedure 2018-58.

Determining the Postponement Period

The length of the postponement is not a fixed duration but is determined by the IRS for each disaster. After a federal disaster declaration, the IRS issues official guidance, such as a News Release or a formal Notice, that specifies the relief available. This announcement identifies the affected counties or areas and establishes the start and end dates of the postponement period. The period begins on the date the disaster occurred, as stated in the IRS notice.

While the IRS has discretion over the length of the postponement, the law provides for a mandatory 60-day relief period. This 60-day period is not automatic; it applies only if the IRS issues official guidance postponing deadlines for a specific disaster. In its notice, the IRS will list the time-sensitive acts that are covered. If the IRS provides a longer relief period, the mandatory 60-day period runs concurrently. The total postponement cannot exceed one year from the original due date.

To know the exact deadline, an affected taxpayer must consult the specific IRS announcement for their event. For example, an IRS news release might state that taxpayers affected by a hurricane have from October 5 of one year until May 1 of the next to file returns and make payments. It is the taxpayer’s responsibility to find this guidance on the IRS website or through a tax professional to confirm their new deadline.