by I. David Waxman, EA
Israel Disaster/Terror Relief: What It Means for Your U.S. Taxes (2023–2026)
A note from the Cole Waxman team
Like all of the people of Israel, our team has been coping with the ongoing Hamas war—supporting clients, colleagues, friends, and family through difficult months. We pray for the immediate return of all hostages and for peace and safety for everyone in Israel and the region. In the midst of uncertainty, our mission remains steady: give you clear, practical guidance and shoulder as much of the tax burden as we can.
The three IRS notices—at a glance
• Notice 2023-71: Postpones time-sensitive taxpayer and certain government acts due on/after Oct 7, 2023 and before Oct 7, 2024 to a new deadline of Oct 7, 2024. irs.gov
• Notice 2024-72: Extends relief so acts due on/after Sept 30, 2024 and before Sept 30, 2025 are postponed to Sept 30, 2025; it also carries forward acts that were previously postponed under Notice 2023-71 for eligible taxpayers. irs.gov+1
• Notice 2025-53: Extends again—acts due on/after Sept 30, 2025 and before Sept 30, 2026 are postponed to Sept 30, 2026 (coordinating with prior notices). irs.gov+1
Plain English: if you qualify, the IRS “pauses the clock” on many filing/payment deadlines that fall inside these windows and disregards those periods when computing many penalties, interest, and other time limits under §7508A (see the regulation). Legal Information Institute
Who qualifies?
You are an “affected taxpayer” if ANY of the following apply (the 2024-72 model; 2025-53 follows it):
• Your principal residence (individual) or principal place of business (entity/sole prop) is in Israel, the West Bank, or Gaza.
• Your return preparer or the necessary tax records needed to meet your deadline are located in the covered area.
• Spouse on a joint return with an affected taxpayer; certain recognized relief workers; individuals killed/injured/taken hostage in the area. irs.gov
Example: All clients of Cole Waxman Tax Services qualify while the firm/records are in Israel—even if the client currently lives elsewhere (because the IRS explicitly includes taxpayers whose records or preparers are in the covered area). irs.gov
How to receive relief (what to actually do)
• If your IRS address of record is in the covered area: the IRS in theory will apply relief automatically—no special notation required. irs.gov. In practice, they often neglect to do this, so proceed to “plan B” below.
• If you qualify because your preparer/records are in Israel (or another category), or if the IRS neglected to automatically apply the relief:
- Call the IRS Disaster Hotline: +1-866-562-5227 and ask the agent to code your account for Israel relief under Notice 2024-72 and Notice 2025-53. Record the agent ID/date/time. Note – budget an hour or so for the call. Open 7AM to 7PM central time. irs.gov+1
- Optional belt-and-suspenders for paper filings: add a header such as “Israel §7508A Relief — Notice 2024-72 / Notice 2025-53” or attach a short memo. Helpful for human readers—but the hotline coding is what actually matters. irs.gov
Practical impact (what actually changes)
- Late returns (Failure-to-File)
If your due date/extended due date falls inside a relief window, your return is on time if filed by the postponed deadline (e.g., Sept 30, 2026). Failure-to-File penalties don’t run during the postponed period (per §7508A rules). irs.gov+2irs.gov+2 - Late payments (Failure-to-Pay and interest)
If the payment due date falls inside a postponement window, Failure-to-Pay penalties and interest are suspended during that window; paying by the postponed date is treated as timely for that period. If your original payment due date preceded Oct 7, 2023, charges still run up to Oct 6, 2023, then pause until the window ends. irs.gov+1
Worked example — 2022 return filed Sept 1, 2026
Eligible taxpayer: no Failure-to-File during the relief period; interest/Failure-to-Pay accrue only up to Oct 6, 2023, then the balance stays flat until paid by Sept 30, 2026. irs.gov+1
Grey areas you should expect to fight
A) Dependent SSNs (PATH Act timing) — GREY AREA
Scenario (2023 Form 1040):
• Child born Feb 1, 2023
• CRBA issued Aug 1, 2023
• SSN issued Dec 31, 2024
Normally, the child does not qualify. The PATH act requires that the SSN must be issued by the extended due date, which could be April 15, or June 15, or October 15, or December 15 at the latest. This SSN was issued after all of these dates.
Why this is grey: The statute for CTC/ACTC/EITC requires a valid SSN “by the due date of the return (including extensions).” The IRS’s IRM 21.6.3 instructs employees that references to “extended due date or due date (including extensions)” include the disaster due date—implying that an SSN obtained by the postponed deadline should count. Technically, §7508A postpones “acts” rather than redefining “due date,” so you may need to advocate the position. Expect pushback; be ready to cite the notice and the IRM language, and document eligibility. Not easy, but potentially winnable. irs.gov
B) Refund statute “look-back” (3-year cap) — GREY AREA
Quick example: Filing in 2025 to claim a refund for 2020 (withholding deemed paid Apr 15, 2021). The §7508A regulation’s Example 5 says the postponement period is disregarded when applying the §6511(b)(2)(A) look-back, so April 15 deemed payments can still be refundable if you file by the postponed date. In practice, you may still need to fight this—bring the regulation example and proof of eligibility; expect initial confusion. Legal Information Institute
Fast FAQ
• Do I “apply” for relief by writing a note on my return?
No. If your address of record is in the covered area, relief is generally automatic. If you qualify under another category (e.g., your preparer/records are in Israel), call the Disaster Hotline to have your account coded. Adding a header/memo on paper filings is optional. irs.gov+1
• Does relief extend the PATH-Act SSN deadline for dependents?
Operationally, the IRS manual tells staff to treat the disaster-postponed date as the operative “due date” for SSN timing, but this is a grey area and may require advocacy. irs.gov
• Does relief fix estimated-tax penalties for prior quarters?
No. §7508A postponement doesn’t rewrite quarterly underpayment computations. It can, however, pause certain penalties/interest during the disaster window for acts due inside that window. Legal Information Institute
Sources (primary)
• Notice 2023-71 (PDF). irs.gov
• Notice 2024-72 (PDF) and IRS news release. irs.gov+1
• Notice 2025-53 (PDF) and IRS news release. irs.gov+1
• 26 C.F.R. §301.7508A-1 (regulation; Example 5 on refunds). Legal Information Institute
• IRM 21.6.3 Credits (SSN timing note includes “disaster due date”); related IRM section on disaster due date usage. irs.gov+1
• IRS Disaster Assistance & Emergency Relief page (hotline information). irs.gov
Call to action
We help U.S.–Israel taxpayers apply these relief rules, defend grey-area positions, and resolve IRS notices. If you think you qualify—or need to pursue one of the grey positions above—get in touch and we’ll map out the documentation and strategy.
Disclaimer
This post is for educational purposes only and does not constitute tax, legal, or accounting advice. Laws and guidance change, and your facts matter. The information could be erroneous or out of date. Consult a qualified professional about your specific situation before taking action.