Skip to Content
Logo
Menu
  • About Our Firm
  • Practice Areas
  • Our People
  • Learning Library
  • Corporate Transparency Act
  • Contact
  • Make A Payment

ABA Section of Taxation Letter in Response to IRS Notice 2020-23

ABA Section of Taxation Letter in Response to IRS Notice 2020-23

May 15, 2020

In a CCM client alert dated April 23, 2020, deadline changes for Section 1031 like-kind exchanges announced in Notice 2020-23 by the Internal Revenue Service (“IRS”) were outlined. In response to Notice 2020-23, the Section of Taxation of the American Bar Association (“ABA Tax Section”) submitted a letter to the IRS requesting further clarification and guidance and providing additional recommendations for changes.

Notice 2020-23 does not explicitly state whether Section 17 of Revenue Procedure 2018-58 applies to Section 1031 deadline postponements. Revenue Procedure 2018-58 provides for several extension options from which taxpayers can choose. The ABA Tax Section requests the IRS confirm Notice 2020-23 applies Section 17 to Section 1031 deadline postponements. Application of Section 17 postpones the 45-day and 180-day periods by 120 days or to the last date of the general disaster extension period, whichever is later, if the following are met:

  • the sale of the relinquished property closes on or before the date of the federally declared disaster, and
  • the last day of such period falls on or after the date of the federally declared disaster.

Specified Time-Sensitive Actions falling within a certain time period are postponed until July 15, 2020 per Notice 2020- 23. Such actions must have a due date of performance on or after April 1, 2020. The ABA Tax Section recommends the IRS apply the postponement period to deadlines falling on or after January 20, 2020, instead of April 1, 2020. This recommendation due in part to Federal Emergency Management Agency Major Disaster Declarations listing the COVID-19 emergency start date of the “Incident Period” as January 20, 2020. Another reason the ABA Tax Section requests this date change is due to many taxpayer’s inability to meet Section 1031 deadlines prior to April 1, 2020 because of various governmental restrictions and business closures. For example, due to various governmental shelter-in-place orders, an individual’s inability to leave their residence to look at potential replacement properties.

The ABA Tax Section recommends the IRS apply the mandatory postponement period under Section 7508A(d)(1). Meaning, deadlines to occur on or after January 20, 2020 are postponed to the later of (a) July 15, 2020, or (b) the latest day of the Incident Period specified for the federally declared disaster plus 60 days.

It is hoped the IRS will provide further guidance and clarification soon.

The author, publisher, and distributor of this CCM Alert is not rendering legal or other professional advice or opinions on specific facts or matters. Under applicable rules of professional conduct, this communication may constitute Attorney Advertising.

© 2020 Clingen Callow & McLean, LLC. All rights reserved.

Related Attorneys

Jodi L. Henninger
Member
Clingen Callow & McLean, LLC
Lisle Office
2300 Cabot Drive, Suite 500
Lisle, Illinois, 60532
Phone 630.871.2600
Geneva Office
21 North 4th Street
Geneva, Illinois, 60134
Phone 630.938.4769
Fax 630.871.9869
General Inquires [email protected]
  • facebook
  • linkedin

Contact Us

©2025 Clingen Callow & McLean, LLC. All rights reserved.

Law Firm Web Design by NMC

Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}