Notice 2020-23 "Additional Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic") was released on April 9, 2020. This notice updates Notice 2020-18 and provides specific relief from the 45-Day Identification and 180-Day Exchange Period deadlines for Taxpayers who are presently involved in an Internal Revenue Code Section 1031 exchange.

The notice provides that persons performing a time-sensitive actions as listed in either § 301.7508A-1(c)(1)(iv) - (vi) of the Procedure and Administration Regulations or Revenue Procedure 2018-58, 2018-50 IRB 990 (December 10, 2018), which is due to be performed on or after April 1, 2020, and before July 15, 2020 (Specified Time-Sensitive Action), is an Affected Taxpayer under those provisions.

Section C of the Notice states that "Affected Taxpayers also have until July 15, 2020, to perform all Specified Time Sensitive Actions, that are due to be performed on or after April 1, 2020, and before July 15, 2020."

This appears to provide that any Affected Taxpayer with a 45-Day Exchange Period or 180-Day Exchange Period deadline between April 1 and July 15, 2020 will have an automatic extension to July 15, 2020.


1) If your identification period falls between 4/1/2020 and 6/1/2020 you have until 7/15/2020 to identify prospective replacement properties.

2) If your 180 deadline falls between 4/1/2020 and 7/15/2020 you have until 7/15/2020 to complete your exchange transaction.

The Notice is linked HERE

This notice is not intended to serve as legal or tax advice. Please consult with your tax or legal advisor regarding your specific circumstances.

An exchanger must complete the acquisition of a replacement property by midnight of the 180th day after transferrance OR the income tax return due date, including extensions, for the exchange's taxable year - whichever comes first. If an extension is required to meet this deadline the extension must be obtained to continue eligibility for tax deferment. IRS Form 4868 must be filed to do so. If you are beginning an exchange this time of year please check now to be sure your replacement property can be acquired before April 15, 2018, or whatever your tax return due date is.

Important Reminder: If you deferred taxes via a 1031 Exchange, remember to file form 8824 with your tax return. IRS instructions and the form are available here

Why Do I Need a Qualified Intermediary?

Choosing the right QI can help taxpayers save thousands of dollars in the exchange of their investment properties. Tax Deferred Exchange benefits have been around for quite some time, first introduced in the Internal Revenue Code in 1921. However, at that time, the guidelines provided for simultaneous exchanges - direct swapping of properties taking place at exactly the same time. In today's market, the timing for these transactions are typically delayed, with one transaction happening at one time and the concluding transaction happening at another. Over the years, there have been several iterations to the Internal Revenue Code that provide for delayed exchanges - exchanges other than direct simultaneous swapping of property. The IRS Tax Code Section 1031 provides safe harbor guidelines for these delayed exchanges that result in the need for a third party entity, independent of the taxpayer's control, to manage receipt and disbursement of funds and/or property. "Independent of the taxpayer" is the clause that often precludes attorneys, CPAs, and real estate brokers, that have provided professional services to the taxpayer within two years of the transaction, to serve as a Qualified Intermediary.

So what does qualify an intermediary to do business competently in the highly complex area of tax deferred exchanges? With well over 20 years experience in the 1031 Exchange business, Statewide Title Exchange Corporation knows that it starts with:

  • Experience and extensive knowledge of IRC 1031
  • Experienced resources on staff to service those 'unique' exchange scenarios
  • Key relationships with real estate, legal and financial partners
  • Highest level of security and sound ethical business practices
  • Dedicated staff providing service for 1031 Tax Deferred Exchanges
  • Solvency
  • Bonded and insured carrying appropriate levels of errors and omissions insurance
  • Providing interest on taxpayer's exchange funds

Contact STEC today for more information!


Washington State Exchangers click here for the full text of this disclosure.