The Department of the Treasury and the Internal Revenue Service (IRS) have issued Notice 2025-53, providing another round of tax relief under § 7508A of the Internal Revenue Code for individuals and businesses affected by the ongoing terroristic action in the State of Israel. This notice extends previously granted postponements and establishes a new relief period, offering crucial deadline extensions for a wide range of tax-related acts. For practitioners with clients impacted by these events, understanding the legal authority, scope of relief, and interaction with prior notices is essential.

Legal Authority for Postponement

The IRS’s authority to grant this relief is rooted in Internal Revenue Code § 7508A(a). This section empowers the Secretary of the Treasury to postpone the time for performing certain acts under the internal revenue laws, for up to one year, for taxpayers determined to be affected by a "terroristic or military action".

The definition of "terroristic action" is found in § 692(c)(2), which specifies it as "any terroristic activity which a preponderance of the evidence indicates was directed against the United States or any of its allies".

In accordance with Revenue Procedure 2004-26, 2004-1 C.B. 890, the Secretary must consult with the Department of State and the Department of Justice to ascertain whether a preponderance of the evidence supports such a determination before it is published. Following this procedure, on September 30, 2025, the Secretary of the Treasury formally determined that the terrorist activity against the State of Israel throughout 2024 and 2025 constitutes a terroristic action within the meaning of § 692(c)(2), thereby triggering the authority to grant relief under § 7508A.

Affected Taxpayers and Covered Area

Notice 2025-53 grants relief to specific categories of taxpayers, referred to as "affected taxpayers," consistent with the definitions in Treasury Regulation § 301.7508A-1(d)(1). The covered geographic area for this relief includes the State of Israel, the West Bank, and Gaza.

The following taxpayers are eligible for the relief provided in this notice:

An individual whose principal residence is in the covered area.
A business entity or sole proprietor whose principal place of business is located in the covered area.
Relief workers, such as individuals affiliated with a recognized government or philanthropic organization, who are assisting in the covered area.
Any individual, business, sole proprietor, estate, or trust whose records necessary to meet a tax deadline, or whose tax return preparer, are located in the covered area.
An individual who was visiting the covered area and was killed, injured, or taken hostage as a result of the terroristic action.
The spouse of an affected taxpayer, but only with respect to a joint income tax return.

The IRS will automatically identify and apply relief to taxpayers whose principal residence or place of business is located within the covered area based on their filing history. However, affected taxpayers who do not meet these specific criteria, such as those whose preparer or records are in the covered area, must proactively request relief by contacting the IRS disaster hotline at (866) 562-5227. International callers may use (267) 941-1000.

Scope of the Tax Relief

The notice postpones the due dates for a variety of taxpayer and government acts until September 30, 2026. This relief applies to acts that were originally due to be performed on or after September 30, 2025, and before September 30, 2026.

Postponed Taxpayer Acts

Affected taxpayers have until September 30, 2026, to perform time-sensitive acts listed in Treasury Regulation § 301.7508A-1(c)(1) and Revenue Procedure 2018-58, 2018-50 IRB 990. Key postponed actions include, but are not limited to:

Filing returns for income, estate, gift, generation-skipping transfer, employment, and certain excise taxes.
Paying any tax or installment of tax associated with the above-listed returns.
Making contributions to qualified retirement plans.
Filing a petition with the U.S. Tax Court.
Filing a claim for credit or refund of any tax.
Bringing a suit upon a claim for credit or refund of any tax.

For a complete list of covered acts, practitioners should consult Rev. Proc. 2018-58.

Postponed Government Acts

The relief also extends to the IRS, providing additional time to perform certain time-sensitive actions with respect to affected taxpayers, as described in Treasury Regulation § 301.7508A-1(c)(2). The deadline for these government acts is also postponed to September 30, 2026. These actions include:

Assessing any tax.
Issuing a notice or demand for the payment of tax.
Collecting any tax liability by levy or other means.
Bringing suit by the United States in respect of any tax liability.
Allowing a credit or refund of any tax.

Interaction with Prior Notices

This notice builds upon and extends the relief previously granted by Notice 2023-71, 2023-44 IRB 1191 and Notice 2024-72, 2024-43 IRB 1005.

Notice 2023-71 provided an initial postponement until October 7, 2024.
Notice 2024-72 extended this relief for eligible taxpayers until September 30, 2025.

Because the deadlines under the prior notices fall within the new relief period established by Notice 2025-53, a cumulative extension effect occurs. Taxpayers who were eligible for relief under both Notice 2023-71 and Notice 2024-72, and who are also eligible under this new notice, now have until September 30, 2026, to perform the time-sensitive acts postponed by all three notices.

Similarly, time-sensitive government acts that were postponed by Notice 2024-72 are now further postponed until September 30, 2026, for taxpayers who are eligible for relief under both that notice and the current one. It is critical to note that taxpayers eligible for relief under a prior notice but not under Notice 2025-53 must adhere to the earlier deadline. The Treasury and IRS may issue further relief in the future.

For additional information, please refer to the full text of Notice 2025-53. Questions regarding the notice may be directed to the Office of Associate Chief Counsel (Procedure and Administration) at (202) 317-3400.

Prepared with assistance from NotebookLM.