H.R.517 - Filing Relief for Natural Disasters Act (119th Congress)
Summary
H.R. 517, the Filing Relief for Natural Disasters Act, amends the Internal Revenue Code of 1986 to modify rules for postponing certain tax deadlines due to disasters. It allows the Secretary of the Treasury, in consultation with FEMA, to extend federal tax deadlines for state-declared disasters upon the request of a state governor or the Mayor of D.C.
The bill also extends mandatory extensions from 60 to 120 days. These changes apply to declarations made after the enactment of the Act.
The bill intends to provide relief to individuals and businesses affected by natural disasters by providing more time to meet their tax obligations.
Expected Effects
The primary effect of this bill is to provide greater flexibility and extended deadlines for taxpayers in areas affected by state-declared natural disasters. This will allow individuals and businesses more time to recover and comply with tax obligations.
It shifts some authority to state governors and the Mayor of D.C. to request federal tax relief for their constituents. The extension of mandatory deadlines from 60 to 120 days provides additional breathing room during recovery periods.
Potential Benefits
- Provides additional time for taxpayers to meet obligations after a disaster.
- Allows state governors and the Mayor of D.C. to request federal assistance.
- Offers flexibility in the face of unforeseen natural events.
- Reduces potential penalties for late filing or payment due to disaster-related disruptions.
- Streamlines the process for obtaining tax relief in disaster situations.
Potential Disadvantages
- Potential for increased administrative burden on the IRS.
- Possible delays in federal tax revenue collection.
- Risk of inconsistent application of relief across different states.
- May create opportunities for abuse or fraudulent claims.
- Could incentivize states to declare disasters more frequently to obtain tax relief.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to provide relief to citizens affected by natural disasters. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts, and excises, implying the authority to modify tax deadlines and procedures. 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).