Sponsors (3)
The bill protects disaster-affected taxpayers by extending time to claim refunds/credits and reducing improper collections, at the cost of greater IRS administrative burden and slower final resolution of some tax accounts.
Disaster-affected taxpayers get more time to file refund and credit claims when filing deadlines are postponed, reducing the risk of losing refunds or credits.
Taxpayers in affected areas will face fewer improper IRS collection actions because IRS notices and collection timing must account for postponed payment deadlines.
Taxpayers may experience slower final resolution of their tax accounts and less certainty because claims and collections remain open longer when deadlines are extended.
Federal employees at the IRS will face increased administrative workload to adjust statutes of limitation, notices, and processing to reflect postponed deadlines, which could strain agency resources.
Based on analysis of 2 sections of legislative text.
Treats disaster-related IRS postponements as extensions for refund/credit statute-of-limitations and adjusts collection-notice deadlines to reflect those postponements.
Treats IRS deadline postponements tied to disasters (periods disregarded under section 7508A) as formal extensions for purposes of the statute of limitations on tax credit or refund claims, and requires the IRS to set the last date for tax-payment collection notices after accounting for those postponements. The changes apply to refund/credit claims filed after enactment and to collection notices issued after enactment.
Introduced February 21, 2025 by Gregory Francis Murphy · Last progress December 26, 2025