Disaster relief postpones assessment deadline to end of relief period

Plain-English summary

Chief Counsel advised that section 7508A postpones covered deadlines that fall within a designated disaster postponement period. Notice 2023-71 established a postponement period from October 7, 2023, through October 7, 2024, and included tax assessment among the postponed government acts. In the example discussed, an assessment limitation period that otherwise would expire on December 31, 2023, falls within that period. The assessment deadline is therefore postponed until October 7, 2024.

Ruling snapshot

• Question: How does Notice 2023-71 affect an assessment deadline that would otherwise expire during its postponement period?
• Outcome: Advice given, the deadline moves to the end of the postponement period
• Key authorities: IRC § 7508A; Treas. Reg. § 301.7508A-1; Notice 2023-71

Full text (IRS public release)

 ID:      CCA_2023110816201448                     [Third Party Communication:

 UILC:    7508A.00-00                              Date of Communication: Month DD, YYYY]

Number: 202346028
Release Date: 11/17/2023
From: ----------------------
Sent: Wednesday, November 8, 2023 4:20:14 PM
To: ------------------------
Cc:
Bcc:
Subject: RE: ACCI/LB&I Catch-Up Call on Nov. 9th


Under section 7508A, the due dates for certain acts that fall within the postponement
period are postponed until the end of the postponement period. Under Notice 2023-71,
the postponement period is from 10/07/2023 to 10/07/2024, and assessing tax is one of
the government acts that is postponed. Using your example, without the application of
Notice 2023-71, the statute of limitation on assessment would normally expire on
12/31/2023. With the application of Notice 2023-71, because 12/31/2023 falls within the
postponement period, the statute of limitation on assessment is postponed until
10/07/2024.

The 7508A regulations also contain another example of this relief. See 26 CFR
301.7508A-1(f), Example 2.

Hope that helps! Please let me know if you have any questions.

Thanks,
Drew