IRS Extends 45 and 180 Day 1031 Exchange Deadlines

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Internal Revenue Service Announces Extension of 45 and 180 Day Deadlines for 1031 Exchange Clients affected by Tropical Storm Bonnie and Hurricane Charley


FOR IMMEDIATE RELEASE: August 16, 2004


LA JOLLA, CALIFORNIA - Diversified Exchange Corporation announced today that the Internal Revenue Service has extended the 45 and 180 calendar day deadlines for "Affected Taxpayers" that are in the middle of completing a 1031 tax-deferred, like-kind exchange transaction and were affected by Tropical Storm Bonnie or Hurricane Charley.


The Internal Revenue Service announced, in News Release IR 2004-108, special tax relief for "Affected Taxpayers" who are located in the Presidentially Declared Disaster Areas ("Affected Areas").


Affected Florida Counties ("Affected Areas")

The "Affected Areas" include the following twenty-five (25) Florida counties: Brevard, Charlotte, Collier, DeSoto, Dixie, Duval, Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee, Manatee, Okeechobee, Orange, Osceola, Pasco, Polk, St. Johns, Sarasota, Seminole, and Volusia.


Deadline Extension Granted


“Affected Taxpayers” with a 45 calendar day identification deadline or a 180 calendar day exchange deadline beginning on August 11, 2004 through and including October 15, 2004 were granted an extension of the deadline until midnight of October 15, 2004.


News Release IR 2004-108 includes the time-sensitive actions described in Revenue Procedure 2004-13 as eligible for this extension. Internal Revenue Code Section 1031(a) is specifically mentioned in Revenue Procedure 2004-13, Section 6, Item 21.


Examples of Extension


If an Exchangor's 45 calendar day identification deadline falls on August 20, 2004, then the 45 calendar day identification deadline is extended until midnight on October 15, 2004.


If the Exchangor's 180 calendar day exchange deadline falls on August 25, 2004, then the 180 calendar day exchange period is extended until midnight on October 15, 2004.


Affected Taxpayers


“Affected Taxpayers” include individuals and businesses located in the “Affected Area,” those whose tax records are located in the Disaster Area, and relief workers. Note that many relief workers are now coming to Florida to aid in the disaster clean up and that they are granted extensions under News Release IR 2004-108 regardless of their state of residence or the location of their tax records. If additional areas are added to the Disaster Area, this same relief will apply.


Disaster Designation


The Disaster Designation for this extension is "Bonnie/Charley." To qualify for this relief, "Affected Taxpayers" should write the Assigned Disaster Designation "Bonnie/Charley" in red ink on the top of the related form or income tax return, including the Replacement Property Identification Form.


Casualty Losses and Other Relief from the IRS


Taxpayers who have been affected by this disaster and who are located in a Presidentially Declared Disaster Area have the option of declaring disaster-related casualty losses on their Federal income tax return for either last year (2003) or this year (2004). Taxpayers should consult with their tax advisor for more specific information.


The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers who need them to apply for benefits or to file amended returns claiming casualty losses. Such taxpayers should put the Assigned Disaster Designation in red ink at the top of Form 4506, “Request for Copy of Tax Return,” or Form 4506-T, “Request for Transcript of Tax Return,” as appropriate, and submit it to the IRS.


The IRS toll-free number for general tax questions is (800) 829-1040.

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