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 to provide taxpayers affected by disasters with extensions for certain tax deadlines. Specifically, it ensures that the postponement of deadlines due to disasters applies to the limitation on credit or refund claims and that collection notices take these postponements into account. The bill aims to provide relief to individuals and businesses impacted by significant disasters, fires, or terroristic/military actions.
Expected Effects
This act will change how the IRS handles tax deadlines for those affected by disasters. It will give taxpayers more time to file for credits or refunds and prevent premature collection notices. Ultimately, it should reduce financial stress on those recovering from disasters.
Potential Benefits
- Provides taxpayers affected by disasters more time to file for tax credits or refunds.
- Prevents the IRS from sending collection notices prematurely to those with disaster-related extensions.
- Reduces financial burdens on individuals and businesses during recovery from disasters.
- Simplifies the tax filing process for those in disaster areas.
- Ensures fair treatment for taxpayers facing extenuating circumstances.
Potential Disadvantages
- May slightly increase administrative burden on the IRS to track and manage disaster-related extensions.
- Could potentially delay revenue collection for the government in the short term.
- Might create opportunities for fraudulent claims if not properly monitored.
- The benefits are limited to those directly affected by declared disasters.
- Potential for confusion if taxpayers are unaware of the extended deadlines.
Constitutional Alignment
The bill aligns 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 bill modifies the tax code to accommodate disaster-stricken individuals, which falls under 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).