H.R. 1491: Disaster Related Extension of Deadlines Act

This bill, titled the Disaster Related Extension of Deadlines Act, aims to amend certain provisions of the Internal Revenue Code regarding tax deadlines in the event of disasters. Below are the key aspects of what the bill would do:

1. Title of the Act

The legislation is referred to as the Disaster Related Extension of Deadlines Act.

2. Postponement of Deadlines

The bill allows for the postponement of specific deadlines related to tax filing and payments due to disasters. Key changes include:

a. Extension of Time for Filing Returns

The amended law would enable taxpayers to treat periods of time disregarded due to disasters as extensions for filing tax returns. This means that if individuals or businesses are affected by a disaster, they would have additional time to file their tax returns without penalties.

b. Impact on Limitation on Credit or Refund

The bill specifies that the extended filing periods will be considered when calculating the time limits for claiming tax credits or refunds. This provides further relief to affected taxpayers, ensuring they are not penalized for delays in filing due to circumstances beyond their control.

c. Collection Notices Adjustments

Furthermore, the bill modifies the provisions regarding tax collection notices. Under the new regulations:

• Tax collection deadlines will also account for any postponements related to disasters or other significant events, such as military actions or terrorism.
• This means that collection notices issued after a declared disaster would provide adjusted deadlines that reflect the time allowed for affected taxpayers to respond or pay their taxes.

3. Effective Dates

Both the changes regarding tax return deadlines and the adjustments to collection notices will take effect for claims and notices issued after the bill is enacted.

4. Purpose of the Bill

The overall purpose of this legislation is to provide flexibility and alleviate the tax obligations of individuals and businesses adversely affected by disasters, ensuring that they have fair opportunities to meet their tax responsibilities without undue burden during recovery periods.

Relevant Companies

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