Disaster Bill Extends Tax Deadlines, Giving Victims More Time for Refunds and Payments

This bill, the "Disaster Related Extension of Deadlines Act," tweaks the tax rules to give folks hit by disasters a bit more flexibility. Specifically, it extends the window for claiming tax refunds or credits if a disaster already pushed back your filing deadline. It also adjusts the timing for when the IRS needs to send out notices demanding tax payment, making sure those deadlines also account for disaster-related delays.

Catching a Break on Tax Refunds

Ever worry about missing out on a tax refund because a hurricane, fire, or other disaster threw your life (and paperwork) into chaos? This bill addresses that. Normally, there's a strict time limit, often looking back three years from when you file (under section 6511(b)(2)(A) of the tax code), on how far back you can claim a refund based on taxes you've already paid. If a disaster forces the IRS to postpone filing deadlines for your area, this act ensures the deadline for claiming those past refunds or credits gets extended too. It means you won't lose out just because a disaster disrupted the normal timeline.

Making Sure IRS Notices Keep Pace

The bill also adjusts another deadline related to IRS notices. Under section 6303(b), the IRS generally can't demand payment for taxes until the official due date has passed. This change makes sure that if your tax payment deadline gets postponed due to a disaster, the deadline for the IRS to send you a formal notice demanding that payment is also adjusted accordingly. It prevents the potentially confusing situation where you might get a payment demand before your disaster-extended due date has even arrived. Both these changes kick in for claims filed and notices sent after the bill becomes law.