Disaster Related Extension of Deadlines Act

Floor Speech

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Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1491) to amend the Internal Revenue Code of 1986 to make the postponement of certain deadlines by reason of disasters applicable to the limitation on credit or refund, and to take postponements into account for purposes of sending collection notices, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 1491

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Disaster Related Extension of Deadlines Act''. SEC. 2. POSTPONEMENT OF CERTAIN DEADLINES BY REASON OF DISASTERS MADE APPLICABLE TO LIMITATION ON CREDIT OR REFUND.

(a) Extension of Time for Filing Return.--

(1) In general.--Section 7508A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

``(f) Application to Limitation on Credit or Refund.--For purposes of section 6511(b)(2)(A), any period disregarded under this section with respect to the time prescribed for filing any return of tax shall be treated as an extension of time for filing such return.''.

(2) Effective date.--The amendment made by this subsection shall apply to claims filed after the date of the enactment of this Act.

(b) Collection Notices.--

(1) In general.--Section 6303(b) of such Code is amended--

(A) by striking ``Except'' and inserting the following:

``(1) In general.--Except'', and

(B) by adding at the end the following new paragraph:

``(2) Postponement by reason of disaster, significant fire, or terroristic or military actions.--For purposes of paragraph (1), the last date prescribed for payment of any tax shall be determined after taking into account any period disregarded under section 7508A.''.

(2) Effective date.--The amendments made by this subsection shall apply to notices issued after the date of the enactment of this Act.

Mr. Speaker, I rise today in support of H.R. 1491, the Disaster Related Extension of Deadlines Act, introduced by my Ways and Means colleagues Representatives Murphy and Panetta. Both of their home States, North Carolina and California respectively, are no strangers to the toll of natural disasters. This legislation corrects a discrepancy that can deny Americans affected by natural disaster their rightful tax refund.

Often, the IRS postpones the filing and payment deadline for taxpayers impacted by a natural disaster. Understandably, some taxpayers living in a disaster area choose to file their taxes and wait to pay the tax bill at a later date, freeing up resources to instead help replace the items that they have lost. For the average taxpayer who requests a filing extension, the deadline to claim a tax refund or credit for that tax year is also extended; not so for the victims of natural disasters. They do not receive the same amount of additional time to claim a tax credit or refund as taxpayers who request filing extensions.

This situation is fundamentally unfair. It potentially denies Americans affected by a natural disaster their rightful tax refund that they would have otherwise received had they not been struck by a natural disaster and simply requested a filing extension.

This bill provides a straightforward solution that would fix this issue. Victims of natural disasters would have additional time to claim a refund in the same way that those who request a filing extension receive additional time.

I urge my colleagues to stand with taxpayers and provide this measure of tax relief to victims of natural disasters.

This bill passed out of the Ways and Means Committee with a united vote from Republicans and Democrats. It is not hard to see why. Disasters know no party affiliation and affect communities all across the country.

In the last few weeks, communities I represent in southeastern and south central Missouri were struck by 19 deadly tornadoes and storms. I had the chance to visit and talk with the people impacted. I saw destroyed homes, tossed cars, and crop damage. I also saw how neighbors, churches, and charities spring into action to provide a warm meal, temporary shelter, and hope to the families who lost so much.

This legislation treats Americans affected by natural disasters fairly and ensures that the Federal Government is going to do its part to be responsive to their needs.

Mr. Speaker, I urge all of my colleagues to support this legislation, and I yield back the balance of my time.

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Mr. SMITH of Missouri. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

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