New Bill Offers 120-Day Tax Relief Extension for State-Declared Disasters

The Filing Relief for Natural Disasters Act introduces key changes to federal tax deadline extensions following disasters. Specifically, it allows the Treasury Secretary to postpone deadlines for up to 120 days when a Governor requests relief following a state-declared disaster, aligning the process more closely with federally declared events. This applies to disasters declared after the act becomes law.

More Breathing Room When It Counts

Currently, mandatory extensions are often capped at 60 days. This bill doubles that mandatory minimum extension period to 120 days for qualifying disasters, whether federal or state-declared (if requested by the Governor). Imagine your town is hit by severe flooding – enough to disrupt lives and businesses significantly, but maybe not triggering a full federal disaster declaration. If your Governor declares a state disaster and requests federal tax relief, this bill means you'd automatically get four months, not just two, potentially easing the pressure while you're focused on recovery, dealing with insurance, or finding temporary housing.

State Disasters Get Federal Flexibility

This legislation bridges a gap by formally allowing Governors to request federal tax deadline postponements for disasters declared at the state level. It defines a "qualified State-declared disaster" as a natural catastrophe, fire, flood, or explosion determined by the Governor to cause significant damage. This gives states more direct recourse to seek federal tax relief for their residents impacted by serious events that might not meet the threshold for a Presidential disaster declaration. While the term "significant damage" requires interpretation by the Governor, the mechanism provides a clear pathway for state-initiated relief.