H.R.517 - Filing Relief for Natural Disasters Act (119th Congress)
Summary
H.R. 517, the "Filing Relief for Natural Disasters Act," amends the Internal Revenue Code of 1986 to modify rules for postponing certain tax deadlines due to disasters. It allows the Secretary of the Treasury, after consulting FEMA, to extend tax deadlines in states with governor-declared disasters. The bill also extends mandatory extensions from 60 to 120 days.
Expected Effects
This act will provide more flexibility and time for individuals and businesses to meet tax obligations following state-declared natural disasters. By extending the postponement period to 120 days, it aims to alleviate financial stress during recovery. The changes apply to declarations made after the enactment of the Act.
Potential Benefits
- Provides taxpayers in disaster-stricken areas with additional time to file and pay taxes.
- Reduces the immediate financial burden on individuals and businesses recovering from disasters.
- Empowers state governors to request federal tax relief for their constituents.
- Increases the timeframe for mandatory extensions, offering more breathing room.
- Streamlines the process for disaster-related tax relief.
Potential Disadvantages
- May increase administrative burden on the IRS due to the potential for more extension requests.
- Could delay tax revenue collection for the federal government.
- The definition of "qualified State declared disaster" might be subject to interpretation, potentially leading to disputes.
- The consultation requirement with FEMA could introduce bureaucratic delays.
- Potential for misuse if governors declare disasters for political gain.
Constitutional Alignment
The bill aligns with the Constitution's Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises. By modifying the rules for tax deadlines, Congress is exercising its constitutional authority over taxation. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).