TITLE: New IRS Relief for Israel-Affected Taxpayers: Federal Deadlines Extended to 30 September 2027
Understand the new 30 September 2027 deadline
The IRS has extended certain federal tax deadlines for taxpayers affected by terroristic action in Israel. Under Notice 2026-63, qualifying taxpayers may postpone eligible filing, payment and other time-sensitive acts until 30 September 2027.
This matters to US LLCs, corporations and international sellers with owners, finance teams, tax records or principal business operations connected to Israel, the West Bank or Gaza.
It does not automatically postpone every US, state or marketplace tax deadline. Use the checklist below to identify what may be covered.
On 30 September 2026, the IRS issued News Release IR-2026-116 and Notice 2026-63.
The Treasury Secretary determined, following the procedures in Rev. Proc. 2004-26 and consultation involving the State Department and Department of Justice, that terrorist activity throughout 2025 and 2026 against the State of Israel constitutes “terroristic action” under section 692(c)(2).
As a result, qualifying affected taxpayers can postpone certain acts that are due:
- On or after 30 September 2026; and
- Before 30 September 2027.
Those acts must generally be completed by 30 September 2027, unless further relief is issued.
Check whether your business is an affected taxpayer
The relief applies to five main categories under Treasury Regulation §301.7508A-1(d)(1):
- An individual whose principal residence is in Israel, the West Bank or Gaza.
- A business entity or sole proprietor whose principal place of business is in that covered area.
- An individual, business entity, sole proprietor, estate or trust whose tax return preparer or necessary tax records are located in the covered area.
- A spouse of an affected taxpayer, but only for a joint return of two married individuals.
- An individual visiting the covered area who was killed, injured or taken hostage because of the terroristic action.
The IRS automatically identifies taxpayers whose principal residence or principal place of business is in the covered area from previously filed returns.
However, the IRS may not identify an international business that qualifies because its preparer or records are in Israel. If your filing address is outside the covered area, call the IRS disaster hotline at (866) 562-5227. International callers can use (267) 941-1000.
Tell the IRS when you qualified for relief. Keep evidence supporting the location of your preparer, records or other connection.
Review Form 5472 exposure before relying on the relief
This update is especially relevant to foreign-owned US LLCs and corporations.
A foreign-owned single-member LLC that is treated as disregarded for US federal income tax purposes may still need to file Form 5472 with a pro forma Form 1120. The filing reports certain transactions between the US entity and its foreign owner or other related parties.
Failure to file correctly can create Form 5472 penalties of $25,000 per form, with $25,000 per year reporting failures representing a significant compliance exposure.
Do not assume that the deadline has moved simply because an owner or team member is located in Israel. Confirm that the entity meets one of the affected-taxpayer categories and that the specific act is covered.
Review these items immediately:
- The entity’s legal classification.
- The owner’s residence and business location.
- The company’s principal place of business.
- The location of accounting records.
- The location of the tax return preparer.
- The original due date for Form 5472 and the pro forma Form 1120.
- Evidence showing when the taxpayer became eligible.
This process helps you avoid treating relief as an automatic exemption from filing requirements.
Apply the rule to a US LLC or corporation
Consider a US LLC with an Israeli-resident owner whose principal place of business is Israel.
The entity may be an affected taxpayer. If it qualifies, a filing normally due on 15 April 2027 may move to 30 September 2027. For a calendar-year corporation with a return normally due on 15 March 2027, the same postponed deadline may apply.
The exact result depends on the entity’s classification, filing requirement and eligibility under Notice 2026-63. Confirm the position before delaying the filing.
The relief may also apply to qualifying:
- Income tax returns.
- Employment tax returns.
- Excise tax returns, except firearms tax.
- Estate and gift tax returns.
- Tax instalment payments.
- Claims for credit or refund.
- Tax Court petitions.
- Qualified retirement plan contributions.
- Other time-sensitive acts covered by the applicable regulations and revenue procedures.
The list is not exhaustive. Read the notice and match each deadline to the relevant act.
Check whether your records or preparer are in Israel
A UK or EU Amazon FBA seller may qualify even when the company itself is not based in Israel.
For example, a UK or EU seller may have its bookkeeping team and source records in Israel. This can potentially bring the business within the category covering taxpayers whose preparer or necessary records are located in the covered area.
Because the company’s filing address may be outside Israel, the IRS may not identify it automatically. The business should call the IRS hotline and request to be flagged.
Keep an organised evidence file containing:
- The preparer’s engagement details.
- The address where bookkeeping work was performed.
- The location of source records.
- Bank, marketplace and inventory records needed for the filing.
- The date the disruption or qualifying connection began.
- Copies of correspondence with the IRS.
This documentation supports the claim and gives your compliance team a clear audit trail.
Separate federal relief from state sales tax
Do not confuse federal relief with state-level sales tax obligations.
Suppose you operate with:
- A warehouse in Delaware.
- Inventory in California.
- Sales tax nexus in Texas and New York.
- A finance manager in Tel Aviv.
The manager’s location may be relevant to a federal filing if the taxpayer meets the rules. However, only covered acts of the affected taxpayer are postponed.
State sales tax returns remain subject to the applicable state deadlines. Marketplace-facilitated sales tax reporting filed with state agencies is not a federal act under Notice 2026-63. The notice does not automatically postpone those returns, payments or registrations.
Continue checking requirements in California, Texas, New York and any other state where you have inventory, employees, economic nexus or marketplace obligations.
The same principle applies to import compliance. US importers of record must continue monitoring customs entries, duties, broker documentation and other obligations that are outside the federal tax acts postponed by this notice.
