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A bill to amend the Internal Revenue Code of 1986 to modify the rules for postponing certain deadlines by reason of disaster.
1/17/2025, 11:56 AM
Summary of Bill S 132
Specifically, the bill aims to provide relief to taxpayers who are affected by natural disasters or other emergencies by allowing them more time to meet their tax obligations. This includes extending deadlines for filing tax returns, making tax payments, and other related requirements.
The Disaster Tax Relief Act of 2021 seeks to streamline and improve the process for taxpayers seeking relief in the aftermath of a disaster. It also includes provisions to ensure that taxpayers are not penalized for late filings or payments due to circumstances beyond their control. Overall, this bill is designed to provide much-needed assistance to individuals and businesses who are facing financial challenges as a result of a disaster. It aims to make the tax system more flexible and responsive to the needs of taxpayers during difficult times.
Congressional Summary of S 132
Filing Relief for Natural Disasters Act
This bill authorizes the Internal Revenue Service (IRS) to postpone federal tax deadlines for taxpayers affected by a qualified state declared disaster, upon written request by the state governor. The bill also increases the automatic extension of federal tax deadlines for certain taxpayers.
Under current law, the IRS may postpone federal tax deadlines for taxpayers affected by a federally declared disaster, including (but not limited to) deadlines for (1) filing federal tax returns, (2) paying federal taxes, (3) making retirement plan contributions, and (4) tax assessments and collections.
The bill authorizes the IRS to postpone such federal tax deadlines for taxpayers affected by a qualified state declared disaster upon written request by the state’s governor (or the District of Columbia mayor). Under the bill, a state includes the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.
The bill defines qualified state declared disaster as any natural catastrophe, fire, flood, or explosion that causes damage of sufficient severity and magnitude to warrant a request to postpone such federal tax deadlines.
Further, under current law, an automatic 60-day extension of such federal tax deadlines applies to certain relief workers, individuals killed or injured as a result of a federally declared disaster, and taxpayers whose principal residence, business, or tax records are located in a federally declared disaster area.
The bill increases to 120 days the automatic extension of federal tax deadlines for these taxpayers.
