Disaster Related Extension of Deadlines Act
Summary
The Disaster Related Extension of Deadlines Act amends the Internal Revenue Code of 1986 to extend certain tax deadlines for individuals and businesses affected by federally declared disasters. This extension applies to the limitation on credit or refund claims and affects the timing of collection notices issued by the IRS. The Act aims to provide relief to those impacted by disasters by providing additional time to meet their tax obligations.
Expected Effects
The Act will change the deadlines for filing tax returns and receiving refunds for individuals and businesses in disaster areas. It will also impact when the IRS sends collection notices, ensuring that taxpayers in affected areas are not penalized due to disaster-related delays. This should give people more time to recover and comply with tax laws.
Potential Benefits
- Provides taxpayers affected by disasters with additional time to file returns and claim refunds.
- Prevents penalties and interest for late filings or payments due to disaster-related disruptions.
- Allows the IRS to account for disaster-related delays when issuing collection notices.
- Reduces the stress and burden on individuals and businesses during times of crisis.
- Promotes fairness in the tax system by accommodating those facing unforeseen circumstances.
Potential Disadvantages
- May create administrative challenges for the IRS in tracking and managing extended deadlines.
- Could potentially delay the collection of tax revenue, impacting government funding.
- Might require additional resources for taxpayer education and outreach to ensure awareness of the extended deadlines.
- Potential for confusion among taxpayers regarding eligibility and application of the extensions.
- The extension could be exploited by some to further delay tax payments.
Constitutional Alignment
The Act aligns with the general welfare clause of the Constitution, as it aims to provide relief and support to citizens affected by disasters. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States, as stated in Article I, Section 8, Clause 1. This act is an exercise of that power to provide relief during disasters.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).