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 aims to provide relief to taxpayers affected by disasters by extending certain tax deadlines. The bill ensures that the postponement of deadlines due to disasters also applies to limitations on credit or refund claims and collection notices.
Expected Effects
The act will likely result in taxpayers in disaster areas having more time to file for tax credits or refunds. It will also prevent the IRS from sending collection notices prematurely during the disaster relief period. This provides financial breathing room for those affected by disasters.
Potential Benefits
- Taxpayers in disaster areas will have more time to file for tax credits or refunds.
- The IRS will be required to take postponements into account before sending collection notices.
- Reduced stress and financial burden on individuals and businesses impacted by disasters.
- Improved fairness in tax administration for disaster-stricken areas.
- Potentially fewer penalties and interest charges for late filings due to disasters.
Potential Disadvantages
- Potential for delayed revenue collection by the IRS.
- Increased administrative burden for the IRS to track and manage extended deadlines.
- Possible confusion among taxpayers regarding the specific deadlines and eligibility criteria.
- May create opportunities for fraudulent claims if not properly monitored.
- The act does not address other forms of disaster relief beyond tax-related 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 and provide for the general welfare of the United States (Article I, Section 8). The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).