S.1438 - Disaster Related Extension of Deadlines Act (119th Congress)
Summary
S.1438, 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 applies to limitations on credit or refund claims and factors postponements into the issuance of 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 to those whose deadlines have been extended due to disasters. This provides a buffer for individuals and businesses dealing with the aftermath of a disaster.
Potential Benefits
- Provides taxpayers affected by disasters more time to file for tax credits or refunds.
- Prevents premature collection notices from the IRS during disaster recovery periods.
- Reduces financial stress on individuals and businesses during challenging times.
- Streamlines the tax process for those impacted by unforeseen events.
- Offers clarity and consistency in the application of tax laws during disasters.
Potential Disadvantages
- May slightly increase administrative burden for the IRS to track and manage extended deadlines.
- Could potentially delay revenue collection in the short term.
- Might require additional resources for taxpayer education and outreach.
- Potential for confusion if taxpayers are not adequately informed about the changes.
- The benefits are limited to taxpayers affected by declared disasters.
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 existing tax laws 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).