Greenville Reporter

Congressman Greg Murphy has announced the passage of his bill, H.R. 1491, the Disaster Related Extension of Deadlines Act, by the House Ways and Means Committee. The legislation received bipartisan support and aims to provide disaster victims with extended timeframes for tax refunds and credits. The bill also extends payment demand deadlines when the IRS postpones a payment deadline.

"Disaster victims face unbelievable hardship while restoring their lives after a tragedy," stated Congressman Greg Murphy. "The last thing folks who have had their lives upended by an emergency need to deal with is jumping through confusing hoops imposed by the IRS." He expressed gratitude for the bipartisan backing and anticipates further advocacy on the House floor.

Congressman Jimmy Panetta remarked, "Currently, taxpayers who receive an extension have extra time to claim tax credits and refunds, but those whose filing deadlines were postponed due to a disaster do not receive the same consideration." He highlighted that this legislative change will benefit families and small businesses affected by disasters.

Ways and Means Committee Chairman Jason Smith added, "When the IRS postpones a filing or payment deadline due to a natural disaster, taxpayers need to be treated just as fairly as those who have separately requested their own extensions in filing." He acknowledged Representative Murphy's leadership in pushing for this legislative reform.

The current law allows taxpayers a three-year period to claim credits or refunds. However, it does not account for those whose filings are delayed due to disaster declarations. This bill addresses this gap by providing additional time for such claims.

Additionally, under existing regulations, the IRS issues a "notice and demand" for payments based on original deadlines even if they are postponed due to disasters. The new legislation mandates aligning these notices with postponed deadlines to prevent confusion among affected filers.