Sponsors (2)
The bill protects disaster-affected taxpayers by extending and clarifying how disaster postponements affect refunds and collections, at the cost of added administrative complexity, modest timing delays in tax revenue, and implementation burdens for financial intermediaries.
Disaster-affected taxpayers: late refund and credit claims filed within federally declared disaster postponements are treated as timely, making claims eligible even if they'd otherwise be barred.
Taxpayers receiving IRS collection notices: the IRS must calculate the 'last date for payment' after disaster-related postponements, reducing the risk of premature collection actions (levies, enforced collections).
Taxpayers and IRS staff: the bill creates a clearer, consistent rule for applying disaster-related postponements across refund claims and collection notices, improving predictability of administration.
Taxpayers: the new retroactive timing rules may be confusing—especially when deadlines cross the law's enactment date—raising the need for IRS guidance and risking compliance errors or uncertainty.
Taxpayers and the Treasury: extending refund eligibility windows and delaying collection calculations could modestly delay tax revenue flows to the Treasury.
Financial institutions and third parties that rely on IRS notice timing (e.g., levy schedules): may need to update processes and systems to accommodate changed timing, creating operational burdens.
Based on analysis of 2 sections of legislative text.
Treats disaster-postponed filing/payment periods as formal extensions for refund/credit claims and for determining payment deadlines used in collection notices.
Introduced April 10, 2025 by Raphael Gamaliel Warnock · Last progress April 10, 2025
Treats time periods that the IRS disregards because of a disaster as official extensions for tax filings and payments. This means disaster-related postponements will count as extensions when calculating the deadline to file refund/credit claims and when setting the last date for payment used in collection notices; the filing/claim rule applies to claims filed after the law takes effect and the collection-notice rule applies to notices issued after enactment.