Filing Relief for Natural Disasters Act
Filing Relief for Natural Disasters Act
Plain Language Summary
# Filing Relief for Natural Disasters Act - Summary **What the bill does:** This bill would allow the IRS to postpone federal tax deadlines for people and businesses affected by disasters declared by state governments, not just federally declared disasters. Currently, the IRS can only grant tax deadline extensions for federally declared disasters. Under this bill, a state governor (or D.C. mayor) could request a postponement in writing, and the IRS would be authorized to grant it. The bill also expands automatic tax deadline extensions for certain taxpayers affected by disasters. **Who it affects:** The bill would help any taxpayer—individuals, businesses, and others—who live in or operate in areas hit by state-declared disasters.
It applies to all 50 states, D.C., and U.S. territories including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. The postponements could cover various tax obligations, including filing returns, paying taxes, and making retirement plan contributions. **Current status:** The bill was introduced by Senator Catherine Cortez Masto (D-Nevada) in the 119th Congress and is currently pending in committee, meaning it has not yet been debated or voted on by the full Senate.
CRS Official Summary
Filing Relief for Natural Disasters ActThis bill authorizes the Internal Revenue Service (IRS) to postpone federal tax deadlines for taxpayers affected by a qualified state declared disaster, upon written request by the state governor. The bill also increases the automatic extension of federal tax deadlines for certain taxpayers.Under current law, the IRS may postpone federal tax deadlines for taxpayers affected by a federally declared disaster, including (but not limited to) deadlines for (1) filing federal tax returns, (2) paying federal taxes, (3) making retirement plan contributions, and (4) tax assessments and collections.The bill authorizes the IRS to postpone such federal tax deadlines for taxpayers affected by a qualified state declared disaster upon written request by the state’s governor (or the District of Columbia mayor). Under the bill, a state includes the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.The bill defines qualified state declared disaster as any natural catastrophe, fire, flood, or explosion that causes damage of sufficient severity and magnitude to warrant a request to postpone such federal tax deadlines.Further, under current law, an automatic 60-day extension of such federal tax deadlines applies to certain relief workers, individuals killed or injured as a result of a federally declared disaster, and taxpayers whose principal residence, business, or tax records are located in a federally declared disaster area.The bill increases to 120 days the automatic extension of federal tax deadlines for these taxpayers.
Latest Action
Read twice and referred to the Committee on Finance.