Verdugos News

WASHINGTON, D.C. — On June 6, Rep. Judy Chu (CA-28) joined Rep. David Kustoff (TN-08) introduced the bipartisan Filing Relief for Natural Disasters Act, which would provide relief for impacted taxpayers in states that have issued state-level disaster declarations. Currently, the Internal Revenue Service (IRS) has the authority to postpone filing deadlines in the event of a presidentially-declared federal disaster, but this does not extend to state-level emergencies.

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

Each year, the state of California declares state-level emergencies for disasters like wildfires, floods, or earthquakes. Under current law, Californians are not eligible for federal filing relief for these disasters until they’re also declared by the President of the United States. Those declarations sometimes take weeks, which was the case in 2020 after devastating wildfires, including the Bobcat Fire in the San Gabriel Mountains, ravaged our state. This legislation would ensure that states get the instantaneous IRS support they need to recover from natural disasters as soon as the Governor declares a state-level 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. “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.”

“Over the years, West Tennessee families and businesses have been impacted by natural disasters,” said Rep. 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.”

The Filing Relief for Natural Disasters Act would allow the governor of a state or territory to extend a federal tax filing deadline in the event of a state-declared emergency or disaster, which happens automatically for federally-declared disasters. Extending this authority to states gives them the ability to provide relief independent of the federal government’s involvement in an emergency or natural disaster. The legislation would also expand the mandatory federal filing extension from 60 days to 120 days.

“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.”

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Issues: Small Business, Jobs and the Economy

Original source can be found here.