H.R.1491 - Disaster Related Extension of Deadlines Act (119th Congress)
Summary
H.R. 1491, the Disaster Related Extension of Deadlines Act, amends the Internal Revenue Code of 1986. It ensures that the postponement of certain tax deadlines due to disasters applies to limitations on credit or refund claims. Additionally, it requires the IRS to consider these postponements when sending collection notices.
Expected Effects
This bill will provide taxpayers affected by disasters with more time to file for tax credits or refunds. It also prevents the IRS from sending premature collection notices to those whose deadlines have been extended due to disasters. This should reduce stress and potential financial penalties for disaster victims.
Potential Benefits
- Provides relief to taxpayers affected by disasters by extending tax deadlines.
- Prevents premature collection notices, reducing stress for disaster victims.
- Ensures fair application of tax laws in disaster situations.
- Simplifies tax compliance for individuals and businesses impacted by disasters.
- Reduces potential penalties and interest for late filings due to disasters.
Potential Disadvantages
- May slightly increase administrative burden for the IRS to track and manage extended deadlines.
- Could potentially delay revenue collection in the short term.
- Might create confusion if not clearly communicated to taxpayers.
- Some taxpayers may still struggle to meet extended deadlines due to the severity of the disaster.
- The benefits are limited to those affected by declared disasters.
Constitutional Alignment
This bill aligns with the Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises. By providing tax relief and adjusting deadlines in disaster situations, the bill aims to ensure fair and equitable application of tax laws, which falls within the scope of Congress's constitutional authority.
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).