A tax form (Photo – Marco Verch Professional Photographer)
On Monday, March 31, the House of Representatives passed H.R. 517, the Filing Relief for Natural Disasters Act, introduced by Representatives Judy Chu (CA-28) and David Kustoff (TN-08), with a unanimous vote of 388-0.
By News Desk
The legislation seeks to provide relief for taxpayers in states that have issued state-level disaster declarations. Under current law, the Internal Revenue Service (IRS) has the authority to postpone filing deadlines only during federally declared disasters, leaving taxpayers in states facing emergencies like wildfires, floods, or earthquakes without similar federal relief.
Each year, states such as California declare disasters like wildfires, floods, and earthquakes, but residents are only eligible for federal filing relief if the event is also declared a federal disaster by the President. These federal declarations can take days or even weeks, as demonstrated in 2020 when the Bobcat Fire in the San Gabriel Mountains and other wildfires wreaked havoc on the state. As a result, taxpayers could face two separate tax deadlines—one for their state return and another for their federal return. The new bill would ensure that victims of such disasters receive immediate federal filing relief once a governor declares a state-level emergency.
“While President Biden immediately declared a federal disaster for the Los Angeles fires that devastated my district in January, that was unusually fast,” said Rep. Chu. “That means that if disaster strikes during filing season, taxpayers run the risk of missing federal filing deadlines through no fault of their own. And, there may be serious natural disasters that affect taxpayers’ ability to file, but don’t ever get declared as a federal disaster.”
The bill would give the U.S. Treasury and IRS the authority to extend federal filing deadlines in response to a governor’s request after a state-level disaster declaration. Additionally, it would double the minimum duration of these extensions, from 60 days to 120 days.
“I am proud that our bipartisan bill passed the House, and I continue to urge my colleagues to work with me to support the victims of January’s Los Angeles Fires, including the Eaton Fire in my district, by passing a supplemental disaster appropriations package with no strings attached.,” Rep. Chu added.
H.R. 517 now moves to the Senate for consideration.
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