Memphis Standard

WASHINGTON, D.C. — Congressman David Kustoff (R-TN) and Congresswoman Judy Chu (D-CA) today introduced the bipartisan, bicameral Filing Relief for Natural Disasters Act in the House of Representatives. The legislation will provide relief for taxpayers impacted by natural disasters and emergencies.  

U.S. Senators Catherine Cortez Masto (D-NV), Marsha Blackburn (R-TN), John Kennedy (R-LA), and Chris Van Hollen (D-MD) introduced the companion bill in the United States Senate. 

"Over the years, West Tennessee families and businesses have been impacted by natural disasters," said Congressman Kustoff. "The Filing Relief for Natural Disasters Act will provide relief to taxpayers affected by such crises so that they can focus on what matters most: caring for loved ones and rebuilding their communities. This legislation will give Americans impacted by natural disasters the flexibility they need in order to recover."

"When a natural disaster strikes, ruining homes, communities, and lives, the last thing a survivor should be worried about is filing their taxes," said Congresswoman Chu. "Unfortunately, the IRS can only grant deadline extensions to federally declared emergencies, which are often declared days or weeks after a governor declares a state-level emergency. In California, where wildfires or earthquakes can strike without warning, taxpayers must waste their valuable time and resources filing for penalty waivers and extensions. The Filing Relief for Natural Disasters Act is a common-sense, reasonable solution to this problem by extending that IRS authority to state-declared disasters and states of emergency."

“While I’m glad the administration heeded my call and issued a federal disaster declaration for Nevada counties impacted by severe flooding, too many communities harmed by natural disasters each year miss out on the critical tax relief that comes with federal recognition," said Senator Cortez Masto. “My bipartisan bill will fix this problem and support more Nevada taxpayers experiencing extreme weather and wildfires.”

"The Tennessee Society of Certified Public Accountants thanks Rep. Kustoff for his support and leadership of this important legislation. Expanding the authority of the IRS to provide federal tax relief after major disasters will lighten the burden on CPAs and their clients in a challenging situation and make a difference for small business owners, families and other taxpayers all across the country," said Kara Fitzgerald, Tennessee Society of Certified Public Accountants (TSCPA) President/CEO.

Background:

Currently, the IRS has the authority to postpone tax filing deadlines to taxpayers affected by federally-declared disasters. However, this does not extend to state-level emergencies. The Filing Relief for Natural Disasters Act would authorize the IRS to extend relief to impacted taxpayers as soon as the governor of a state declares a disaster or state of emergency. The legislation would also expand the current mandatory extension following a federally-declared disaster declaration from 60 to 120 days. 

Click here to read the full text of the bill.

Original source can be found here.