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Rep. Chu Bill Would Provide Tax Relief After Natural Disasters

May 23, 2019
Press Release

Washington, DC — Today, Representatives Judy Chu (CA-27) and John Katko (NY-24) and Senators David Perdue (R-GA) and Catherine Cortez Masto (D-NV) introduced the Filing Relief for Natural Disasters Act. Under current law, the IRS has the authority to postpone certain filing deadlines in the event of a presidentially declared disaster. However, that declaration often comes days or weeks after a state-level emergency is declared, which delays the IRS’s ability to provide federal tax relief to impacted businesses and disaster victims. The Filing Relief for Natural Disasters Act would extend the IRS’s limited authority to state-declared disasters and states of emergency.

“When a natural disaster strikes, ruining homes, communities, and lives, the last thing a survivor should be worried about is filing their taxes,” said Rep. Chu. “The IRS has the ability to grant deadline extensions. Unfortunately, that only applies to federally declared emergencies, which are often declared days or weeks after a governor declares a state-level emergency. That means taxpayers have to waste their valuable time and resources filing for penalty waivers and extensions. Today,  I’m proud to introduce the Filing Relief for Natural Disasters Act, a bipartisan, bicameral bill that fixes this problem by extending that IRS authority to state-declared disasters and states of emergency as well.”

“American families and businesses experience numerous hardships in the wake of devastation caused by natural disasters,” said Rep. Katko. “I am proud to join Congresswoman Chu in introducing legislation that would ensure tax deadlines are not among the many concerns facing disaster-impacted communities. This commonsense bill would provide necessary relief to struggling Americans by granting the IRS the authority to quickly postpone tax deadlines during state-declared emergencies.”

The Filing Relief for Natural Disasters Act is endorsed by the American Institute of Certified Public Accountants (AICPA). Text of the legislation can be found here.