Filing Relief for Natural Disasters Act
Summary
The "Filing Relief for Natural Disasters Act" amends the Internal Revenue Code of 1986, modifying rules for postponing tax deadlines due to disasters. It allows the Secretary of the Treasury, after consulting FEMA, to extend federal tax deadlines for state-declared disasters upon a governor's request. The Act also extends mandatory extensions for certain deadlines from 60 to 120 days.
Expected Effects
This Act will provide more flexibility and time for individuals and businesses to meet tax obligations after a state-declared disaster. It empowers state governors to request federal tax relief for their constituents. The extended deadlines aim to alleviate financial stress during recovery periods.
Potential Benefits
- Provides additional time for taxpayers to meet deadlines after state-declared disasters.
- Allows state governors to advocate for federal tax relief for their constituents.
- Increases the mandatory extension period from 60 to 120 days, offering more substantial relief.
- Streamlines the process for disaster-related tax relief by involving FEMA.
- Could reduce penalties and interest for those affected by disasters.
Potential Disadvantages
- May create administrative burdens for the IRS in processing extensions.
- Could potentially delay government revenue collection.
- The definition of a 'qualified State declared disaster' might be subject to interpretation, leading to inconsistencies.
- Some taxpayers may still struggle to meet the extended deadlines.
- The consultation requirement with FEMA might add bureaucratic layers.
Constitutional Alignment
This Act appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises. The Act modifies existing tax laws and procedures, which falls under Congress's enumerated powers. It also indirectly promotes the general welfare by providing relief to citizens affected by natural disasters, as stated in the Preamble.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).