Sponsors (2)
The bill gives disaster-affected taxpayers extra time and clearer rules to preserve refunds and avoid improper collections, at the cost of IRS implementation work and with no retroactive relief for pre-enactment claims.
Taxpayers affected by disaster-related postponements get more time to claim refunds or credits, reducing the risk of missed deadlines and lost tax benefits.
Taxpayers receive clearer IRS deadlines and collection-notice calculations because the IRS must account for disaster postponements, helping reduce improper collection actions and confusion.
Taxpayers with claims or collection notices filed before this law takes effect won't benefit, leaving some disaster-affected taxpayers without relief.
The IRS will need to update procedures and systems to track disregarded periods, creating administrative costs and potential temporary processing delays for taxpayers and federal staff.
Based on analysis of 2 sections of legislative text.
Makes section 7508A disaster postponements count as extensions for certain refund/claim filing deadlines and for determining payment dates on collection notices, prospectively.
Official title: Amend the Internal Revenue Code of 1986 to make the postponement of certain deadlines by reason of disasters applicable to the limitation on credit or refund, and to take postponements into account for purposes of sending collection notices.
Introduced April 10, 2025 by Raphael Gamaliel Warnock · Last progress April 10, 2025
Treats disaster-related postponements already provided by section 7508A of the Internal Revenue Code as extending certain IRS timing rules. Specifically, it makes periods disregarded under section 7508A count as extensions of time for refund/credit claim deadlines and for determining the last date for payment when issuing collection notices, and applies prospectively to claims or notices after enactment.