# Plain Language Summary: Disaster Related Extension of Deadlines Act

When a major disaster strikes—like a hurricane, wildfire, or other catastrophe—the IRS already has the ability to give people extra time to file their taxes and pay what they owe. This bill makes sure that when the IRS grants those disaster-related deadline extensions, they're properly recognized in two important situations that currently have gaps in the rules.

The first part addresses tax refunds. Right now, if you're owed a refund, there's normally a three-year window to claim it. But if a disaster happens and the IRS extends your filing deadline, that extension doesn't automatically count toward your refund deadline. This creates a confusing situation where someone might miss out on a refund they're entitled to simply because the disaster extension wasn't properly factored in. The bill fixes this by making sure any time the IRS gives you due to a disaster counts toward your refund deadline as well, so you don't lose money you're owed.

The second part deals with collection notices—those letters the IRS sends when you owe taxes. Currently, when the IRS sends out a notice demanding payment, the rules don't always account for disaster-related deadline postponements. This means someone affected by a disaster could receive a collection notice that doesn't reflect the extra time they were actually given. The bill ensures that when the IRS sends collection notices, they calculate the payment deadline by including any disaster-related extensions that were granted, making the notices accurate and fair.

Essentially, this bill closes loopholes so that disaster relief from the IRS works consistently across all tax situations, protecting people who've already been through enough by ensuring they don't lose refunds or face premature collection actions because of administrative oversights.

Disaster Related Extension of Deadlines Act

Murphy, Gregory F.

Disaster Related Extension of Deadlines ActThis bill requires the Internal Revenue Service (IRS) to treat the postponement of the federal tax return deadline due to a federally declared disaster or certain other events as an extension of such deadline for purposes of calculating the limit on a tax refund. The bill also provides that the IRS’s deadline for sending certain notices includes such postponement.Under current law, a tax refund claim must be filed within three years of the date that the federal tax return is filed. (Some exceptions apply.) The tax refund amount generally is limited to federal taxes paid within the three years preceding the tax refund claim plus any extension of the federal tax return deadline (lookback period). The postponement of the federal tax return deadline is not an extension for purposes of the&nbsp;lookback period. (Thus, certain tax payments made before the federal tax return is filed may be excluded from the lookback period.)Under the bill, a federal tax return deadline postponed due to a federally declared disaster or certain other events must be treated as an extension of such deadline for purposes of the lookback period.Under current law, the IRS is required to mail a notice and demand for tax payment within 60 days of an assessment but not before the tax payment due date.&nbsp;The bill provides that the tax payment due date includes the postponement of the tax payment deadline due to a federally declared disaster or certain other events.&nbsp;