Murphy Legislation Passes House to Help Natural Disaster Victims with Tax Filing

Washington, D.C. — Congressman Greg Murphy, M.D., applauds the passage of his bipartisan legislation, the Disaster Related Extension of Deadlines Act (H.R. 1491), in the U.S. House of Representatives. This bill enacts much-needed reforms to ensure disaster victims are eligible for tax refunds and credits for three years after a postponed filing deadline. Additionally, the bill delays IRS notice and demand letters when the IRS postpones a payment deadline.

"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 Chairman Smith for his leadership on the Ways and Means Committee and the bipartisan support the bill received on the House floor."

"The last thing that victims of natural disasters need to worry about is whether or not they will receive their tax refund or credit," said Ways and Means Committee Chairman Jason Smith. "President Trump promised we would make government work better for taxpayers. This bill delivers on this mandate and finally expands fair treatment to taxpayers affected by a natural disaster so they receive a tax refund or credit they are rightfully owed. Thank you to Representative Murphy for taking on this issue and fighting to support disaster victims in his home state and in communities across our country."

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.