Greenville Reporter

Congressman Greg Murphy has announced the passage of the Disaster Related Extension of Deadlines Act (H.R. 1491) in the U.S. House of Representatives. The legislation is aimed at aiding victims of natural disasters by allowing them to claim tax refunds and credits for three years if a filing deadline is postponed due to a disaster. It also involves a delay in IRS "notice and demand" letters when the IRS postpones a payment deadline.

"Disaster victims endure unimaginable challenges as they work to rebuild their lives," stated Congressman Murphy. He expressed concern over burdensome IRS filing requirements and commended the bill for offering survivors of natural disasters ample time to claim tax-related benefits. Congressman Murphy also expressed gratitude to Chairman Smith for his efforts in the Ways and Means Committee and the bipartisan support the bill garnered on the House floor.

Chairman Jason Smith of the Ways and Means Committee added that "the last thing that victims of natural disasters need to worry about is whether or not they will receive their tax refund or credit." Smith emphasized that the legislation underscores a commitment to ensuring fair treatment for taxpayers impacted by natural disasters, in line with a promise by former President Donald Trump to enhance governmental efficiency for taxpayers.

The current tax code allows for a "lookback period" of up to three years for taxpayers to claim refunds or credits but does not account for those who can't meet deadlines due to disaster declarations. The approved legislation ensures victims receive additional time to claim any due tax credits or refunds.

Additionally, the bill addresses issues arising from IRS "notice and demand" letters, which notify taxpayers about payments due by the original deadline. The legislation captures the spirit of clarity by requiring the IRS to synchronize claim deadlines with postponed filing deadlines when a declared disaster alters taxpayers' timelines.