45 and 180 Calendar Day Deadlines
Extended Due to Coronavirus (COVID-19)
The
U.S. Treasury (Internal Revenue Service) issued Notice 2020-23 late Thursday
evening, April 9, 2020, granting relief to investors that are in the middle of
a 1031 Exchange transaction.
This Notice is very different
from the typical disaster declaration and extensions granted in the past and is
somewhat confusing based upon the way it was drafted. 
Historically, the President
would declare a Natural Disaster for a specific geographic area and a date
specific event and the U.S. Treasury (Internal Revenue Service) would then
issue a Disaster Relief Notice providing a 120-calendar day extension to the 45-
and 180-calendar day deadlines. This
approach was not used this time.
IRS Notice 2020-23
Notice 2020-23, which revises
Notice 2020-18, 2020-15
IRB 590 (April 6, 2020), and Notice 2020-20, 2020-16 IRB 660 (April 13, 2020), does
not specifically address Section 17 contained within Revenue Procedure 2018-58,
so it would initially appear that the 120-calendar day extension is not
applicable to the current situation.
Affected Taxpayer (Investor)
The Notice provides that any
person performing a time-sensitive action listed in either Section
301.7508A-1(c)(1)(iv) – (vi) of the Procedure and Administration Regulations or
Revenue Procedure 2018-58, 2018-50 IRB 990 (December 10, 2018), which is due to
be performed on or after April 1, 2020, and on or before July 15, 2020
(Specified Time-Sensitive Action), is an Affected Taxpayer.
Deadline Extension
Therefore, the guidance provided
within Notice 2020-23 applies to investors that have a 45-calendar day
identification deadline or a 180-calendar day exchange deadline that falls on
or after April 1st, 2020 and on or before July 15th, 2020. The applicable
deadline that falls within those timelines is extended to July 15th, 2020.
Exeter 1031 Exchange
Services, LLC will continue to monitor the current situation and communicate
any new guidance from the U.S. Treasury (Internal Revenue Service). Check the Exeter News Wire for the most recent
information and updates.
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