The U.S. House of Representatives recently passed the bipartisan Disaster Related Extension of Deadlines Act that ensures disaster victims are eligible for tax refunds and credits for three years after a postponed filing deadline.
The bill also delays IRS notice and demand letters when the IRS postpones a payment deadline.
“Disaster victims endure unimaginable challenges as they work to rebuild their lives,” U.S. Rep. Greg Murphy (R-NC), who introduced the bill, said. “The last thing they should worry about is navigating confusing IRS filing requirements. The Disaster Related Extension of Deadlines Act provides individuals with sufficient time to claim tax refunds or credits while ensuring clear communication from the IRS to prevent unnecessary penalties or interest. I am grateful to Chairman Smith for his leadership on the Ways and Means Committee and the bipartisan support the bill received on the House floor.”
Under the current law, taxpayers have a lookback period of up to three years to claim credits or refunds. This does not take into filings that were postponed as the consequence of a disaster declaration. In addition, the IRS issues a “notice and demand” to inform filers of payments they may owe by the original deadline but wait until the postponed deadline to make a payment.