Disaster Related Extension of Deadlines Act
The Disaster Related Extension of Deadlines Act would align disaster-related postponements of IRS deadlines with two specific areas of the tax code. First, it extends the time to file a tax return for purposes of claims for credits or refunds (the limitation on credit or refund) by treating any period previously disregarded under the disaster extension as an actual extension for filing. Second, it requires that the last date for payment in IRS collection notices take into account any disaster-related postponement. In short, if a taxpayer received an automatic disaster extension to file or pay, that extension would also apply to the deadline to claim credits/refunds and to the payment deadline in collection notices. The changes apply to claims and notices issued after the bill’s enactment.
Key Points
- 1Adds a new subsection to Section 7508A stating that any period disregarded due to disaster extensions for filing returns is to be treated as an extension of time for filing the return for purposes of the credit/refund deadline (6511(b)(2)(A)). Effective for claims filed after enactment.
- 2Modifies Section 6303(b) to include a new paragraph clarifying that, for purposes of notices demanding payment, the last date for payment must reflect any disaster-related period disregarded under 7508A. Effective for notices issued after enactment.
- 3Ensures disaster postponements are consistently accounted for in both the filing window for credits/refunds and the payment deadlines in collection actions.
- 4Uses the phrase “disregarded period” to refer to time that would ordinarily be counted but is set aside due to the disaster extension; that time is treated as an actual extension in these contexts.
- 5Overall focus is on disaster-related relief remaining consistent across filing, refunds/credits, and collection actions.