Murphy Bill to Help Natural Disaster Victims with Tax Filing Signed into Law

Washington, D.C. — Congressman Greg Murphy, M.D., issued the following statement after his bill, the Disaster Related Extension of Deadlines Act, was signed into law. 

"Disaster victims endure unimaginable challenges as they work to rebuild their lives,"  said Congressman Greg Murphy, M.D."The last thing they should worry about is navigating confusing IRS filing requirements. The Disaster Related Extension of Deadlines Act provides individuals with sufficient time to claim tax refunds or credits while ensuring clear communication from the IRS to prevent unnecessary penalties or interest. I am grateful to President Trump for signing my bill into law to bring meaningful reform. I am also very appreciative of Chairman Smith for his leadership on the Ways and Means Committee and the unanimous, bipartisan support the bill received in Congress." 

Background
Under current law, taxpayers are afforded a “lookback period” of up to three years to claim credits or refunds. Unfortunately, the lookback period does not take into account filers who may have postponed their filing due to a disaster declaration.

This bill ensures that victims of disasters have additional time to claim any missed credits or refunds.

Separately, the IRS issues a "notice and demand" to inform filers of any payments they may owe by the original deadline but wait until the postponed deadline to make a payment. This creates unnecessary confusion and stress for disaster victims.

This legislation requires the IRS to extend the claim deadline and postponed filing deadline together, as well as tie the deadline for mailing a "notice and demand" to the postponed filing deadline for those who filed prior to the postponed deadline.