Sponsors (2)
Makes disaster-related postponements of federal tax filing and payment deadlines count as an "extension" for purposes of claiming tax credits or refunds and requires IRS tax-collection notices to incorporate any such postponements. The change modifies the Internal Revenue Code so taxpayers and their preparers can use the extended deadline to file refund/credit claims and obliges the IRS to adjust collection notices accordingly. Applies prospectively: it affects claims and IRS notices filed or issued after the Act becomes law. The amendment is a targeted technical change to how postponements for federally declared disasters interact with tax-administration deadlines and notice procedures.
Adds a new subsection (f) to 26 U.S.C. § 7508A stating that, for purposes of section 6511(b)(2)(A), any period disregarded under section 7508A with respect to the time prescribed for filing any return of tax shall be treated as an extension of time for filing that return.
Effective date for the amendment to section 7508A: the amendment applies to claims filed after the date of the enactment of this Act.
Amends 26 U.S.C. § 6303(b) by replacing the existing text of paragraph (1) and adding a new paragraph (2) titled 'Postponement by reason of disaster, significant fire, or terroristic or military actions' which provides that the last date prescribed for payment of any tax (for purposes of paragraph (1)) is determined after taking into account any period disregarded under section 7508A.
Effective date for the amendments to section 6303(b): the amendments apply to notices issued after the date of the enactment of this Act.
Primary effects fall on taxpayers, tax return preparers, and the IRS. Taxpayers (individuals and businesses) in areas covered by federally declared disasters will be able to use the postponed filing/payment deadline as the operative deadline for claiming refunds or tax credits, reducing the risk of missing statutory claim windows. Tax return preparers and accountants will need to track declared postponements and apply them to client refund/credit claims. The IRS will need to update notice templates, internal guidance, and case-processing systems so collection notices and other communications correctly reflect postponements; that will require administrative work but not new programmatic spending. States and state tax systems are not directly affected by this federal-code change unless they choose to mirror the federal treatment. The change is procedural and narrowly focused: it modifies timing and administrative procedures rather than substantive tax liability or new spending programs. Implementation takes effect for claims and notices after enactment, so agencies and practitioners must adjust operations promptly after the law becomes effective.
Last progress April 10, 2025 (10 months ago)
Introduced on April 10, 2025 by Raphael Gamaliel Warnock
Read twice and referred to the Committee on Finance.
Updated 2 hours ago
Last progress December 26, 2025 (1 month ago)