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Rep. Chu Bill Would Provide Tax Relief After Natural Disasters

May 28, 2021
Press Release

Washington, DC — Today, at the conclusion of National Wildfire Awareness Month, Representatives Judy Chu (CA-27) and John Katko (NY-24) 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. The bill also expands the mandatory federal filing extension from 60 days to 120 days to provide taxpayers with sufficient time to file their taxes with the IRS after experiencing a natural disaster.

“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. “To help, 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 re-introduce the Filing Relief for Natural Disasters Act, a bipartisan bill that fixes this problem by extending that IRS authority to state-declared disasters and states of emergency as well.”

The Filing Relief for Natural Disasters Act is endorsed by the American Institute of Certified Public Accountants (AICPA).