Section 7508A(a) provides the Secretary with authority to postpone the time (up to one year) for performing certain acts under the internal revenue laws for a taxpayer determined by the Secretary to be affected by a terroristic or military action as defined in section 692(c)(2). Section 692(c)(2) defines a terroristic action as “any terroristic activity which a preponderance of the evidence indicates was directed against the United States or any of its allies.”
Section 4.01(1) of Revenue Procedure 2004-26, 2004-1 C.B. 890, provides that prior to publishing a determination that an event outside the United States constitutes a terroristic action within the meaning of section 692(c)(2), the Secretary will ascertain whether the Department of State and the Department of Justice believe that a preponderance of the evidence indicates that the event resulted from terrorist activity directed against the United States or its allies. In accordance with the procedures described in Revenue Procedure 2004-26, the Secretary has determined that the terrorist attacks beginning on October 7, 2023, against the State of Israel (October 7, 2023 Terrorist Attacks) constitute terroristic action within the meaning of section 692(c)(2).
It officially authorizes the IRS to grant administrative tax relief—such as extending tax filing deadlines, postponing payment dates, and waiving certain penalties or interest—for individuals and businesses affected by the October 7, 2023 terrorist attacks.
Section 692(c)(2) specifically governs acts of terrorism occurring outside the United States. Standard disaster provisions typically apply to domestic natural disasters or emergencies declared by the President, whereas Section 692 requires proving that the external action was directed against the U.S. or its allies.
Under Revenue Procedure 2004-26, foreign events require inter-agency coordination before being classified as a “terroristic action.” The Secretary must confirm that both the Department of State and the Department of Justice agree that a preponderance of evidence links the event to terrorism directed at the U.S. or an ally.
The Treasury Secretary has the authority to postpone tax-related acts for up to one year. The specific extension dates and covered tax acts are detailed in formal IRS announcements (such as Notice 2023-71 and Notice 2024-72).
Suresh holds a Master of Commerce (M.Com) degree and is a dedicated personal finance researcher and writer. Combining his advanced academic background in commerce with deep industry research, he covers complex topics like taxation, banking systems, credit analysis, and personal finance strategies. As the founder of Tax Assistant (taxassistant.org), Suresh is committed to translating complicated financial guidelines and economic data into simple, accurate, and actionable educational resources for everyday readers.
