Firefighter hosing down smoldering debris (Cal Fire)
Currently, the Internal Revenue Service (IRS) has the authority to postpone filing deadlines in the event of a presidentially-declared federal disaster, but this does not extend to state-level emergencies.
By News Desk
On Friday, January 17, Rep. Judy Chu (CA-28) joined Rep. David Kustoff (TN-08) and Senators Catherine Cortez Masto (D-NV) and Marsha Blackburn (R-TN) to announce the introduction of the bipartisan Filing Relief for Natural Disasters Act, which would provide relief for impacted taxpayers in states that have issued state-level disaster declarations.
Each year, states like California declare state-level emergencies for disasters like wildfires, floods, or earthquakes. Under current law, Californians are not eligible for federal filing relief for these disasters until they’re also declared by the President of the United States. Those declarations can take days or even weeks, which was the case in 2020 after devastating wildfires, including the Bobcat Fire in the San Gabriel Mountains, ravaged the state. That means taxpayers who just suffered a disaster might face two separate tax deadlines for state and federal returns. This legislation would ensure that survivors can get the instantaneous federal filing relief they need to recover from natural disasters as soon as the Governor declares a state-level emergency.
“Over the past week, my district has been devastated by the Eaton Fire, which has taken lives, destroyed 7,000 structures, left 20,000 people homeless, and burned countless businesses and community institutions to the ground. Thankfully, the Biden-Harris Administration issued a federal major disaster declaration for the fires across Los Angeles County, which enabled the IRS to quickly extend federal filing deadlines for survivors and provide needed relief,” said Rep. Chu. “But for many disasters, federal declarations may come days or even weeks after the state declaration, leaving open the question of whether the IRS will be able to give disaster survivors timely filing relief. The Filing Relief for Natural Disasters Act is a common-sense, bipartisan solution to this problem that will give the IRS the authority to bypass bureaucratic delays and immediately extend tax filing deadlines after state-declared disasters and states of emergency.”
The Filing Relief for Natural Disasters Act would allow the governor of a state or territory to extend a federal tax filing deadline in the event of a state-declared emergency or disaster, which happens automatically for federally-declared disasters. Extending this authority to states gives them the ability to provide relief independent of the federal government’s involvement in an emergency or natural disaster. The legislation would also expand the mandatory federal filing extension from 60 days to 120 days.
“Disasters impact millions of Americans each year – from hurricanes and floods to tornadoes and wildfires. It is vital that taxpayers impacted by natural disasters and facing filing and payment deadlines are given the tools to help minimize the challenges they face as they rebuild their lives and businesses,” said American Institute of Certified Public Accountants (AICPA) Vice President of Tax Policy and Advocacy, Melanie Lauridsen.“We are grateful to Congressman Kustoff and Congresswoman Chu for their steadfast leadership on legislation that would provide this critical relief to millions of taxpayers during difficult circumstances.”
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