New Bill Extends Tax Refund and Payment Notice Deadlines After Disasters

This bill, the "Disaster Related Extension of Deadlines Act," tweaks the tax code to give folks more time when disaster strikes. Specifically, it focuses on two key deadlines managed under the Internal Revenue Code. The main goal is to ensure that people recovering from declared disasters aren't unfairly penalized for missing tax deadlines due to circumstances way outside their control.

Tax Deadlines Get a Rain Check

Here’s the breakdown: First, if a disaster officially postpones the deadline for filing your tax return (something the IRS can do under Section 7508A), this bill automatically extends the window you have to claim a tax credit or refund. This applies to the specific limitation period mentioned in Section 6511(b)(2)(A) of the tax code. Think of it this way: if a hurricane hits your town right before Tax Day and the IRS grants an extension to file, this law ensures you also get extra time to claim that refund you were owed, even if the normal three-year lookback period would have otherwise expired during the disaster disruption. This change kicks in for any claims filed after this act becomes law.

Second, the bill addresses the timing for tax payment notices – those official demands for payment the IRS sends out (under Section 6303(b)). It clarifies that the deadline mentioned in those notices must also account for any disaster-related postponements granted under Section 7508A. So, if a disaster delays everything, the clock on your payment demand notice gets paused too. This adjustment applies to notices the IRS issues after this act is enacted. Essentially, it syncs up different tax deadlines to provide consistent relief when a disaster disrupts normal life and financial paperwork.