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 disaster-related postponements of tax deadlines also apply to the limitation on credit or refund claims. The Act also mandates that these postponements be considered when sending collection notices.
Expected Effects
This Act will provide taxpayers affected by disasters with additional time to claim tax credits or refunds. It also prevents the IRS from sending collection notices prematurely during disaster-related postponement periods. This should reduce stress and financial burden on disaster-stricken individuals and businesses.
Potential Benefits
- Provides taxpayers affected by disasters more time to file for tax credits and refunds.
- Prevents premature collection notices from the IRS during disaster recovery periods.
- Reduces financial stress and administrative burdens on disaster victims.
- Clarifies the application of disaster-related extensions within the tax code.
- Streamlines the tax process for individuals and businesses in disaster areas.
Potential Disadvantages
- May slightly increase administrative complexity for the IRS in tracking and managing extended deadlines.
- Potential for delayed revenue collection due to extended deadlines.
- Could create opportunities for fraudulent claims if oversight is insufficient.
- The benefits are limited to taxpayers affected by declared disasters, potentially creating disparities.
- The act does not address broader disaster relief or preparedness measures.
Constitutional Alignment
This Act appears to align with the general welfare clause of the Constitution, as it aims to provide relief to citizens affected by disasters. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). This act modifies existing tax law to accommodate disaster situations, which falls within Congress's purview.
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).