Disaster Related Extension of Deadlines Act
Disaster Related Extension of Deadlines Act
Plain Language Summary
# Summary of HR 1491: Disaster Related Extension of Deadlines Act **What the Bill Does** This bill changes how the IRS handles tax refunds when federal tax deadlines are postponed due to disasters (like hurricanes, wildfires, or floods) or other emergencies. Specifically, it ensures that when the IRS postpones a tax filing deadline because of a disaster, that postponement counts as an official "extension" for calculating how far back the IRS can look when determining the size of a tax refund. Without this change, people affected by disasters could potentially receive smaller refunds because the postponement wouldn't count toward the three-year lookback period used to determine refund eligibility. **Who It Affects** This law primarily benefits taxpayers in areas affected by federally declared disasters or emergencies.
It ensures they're not penalized with reduced refunds simply because the IRS extended their filing deadline due to circumstances beyond their control. **Status** The bill has already been signed into law, meaning it is now in effect. It was sponsored by Rep. Gregory Murphy (R-NC).
CRS Official Summary
Disaster Related Extension of Deadlines ActThis bill requires the Internal Revenue Service (IRS) to treat the postponement of the federal tax return deadline due to a federally declared disaster or certain other events as an extension of such deadline for purposes of calculating the limit on a tax refund. The bill also provides that the IRS’s deadline for sending certain notices includes such postponement.Under current law, a tax refund claim must be filed within three years of the date that the federal tax return is filed. (Some exceptions apply.) The tax refund amount generally is limited to federal taxes paid within the three years preceding the tax refund claim plus any extension of the federal tax return deadline (lookback period). The postponement of the federal tax return deadline is not an extension for purposes of the lookback period. (Thus, certain tax payments made before the federal tax return is filed may be excluded from the lookback period.)Under the bill, a federal tax return deadline postponed due to a federally declared disaster or certain other events must be treated as an extension of such deadline for purposes of the lookback period.Under current law, the IRS is required to mail a notice and demand for tax payment within 60 days of an assessment but not before the tax payment due date. The bill provides that the tax payment due date includes the postponement of the tax payment deadline due to a federally declared disaster or certain other events.
Latest Action
Became Public Law No: 119-64.