Tillis, Warnock Introduce Bipartisan Legislation to Extend Tax Deadline for Natural Disaster Victims

WASHINGTON, D.C. – Senators Thom Tillis (R-NC) and Reverend Raphael Warnock (D-GA) recently introduced the bipartisanDisaster Related Extension of Deadlines Act,legislation that provides an extension to ensure taxpayers impacted by recent natural disasters have more flexibility when claiming refunds or credits.
“Helene devastated communities across Western North Carolina, leaving many families struggling to recover,”said Senator Tillis. “North Carolinians affected by this disaster deserve the opportunity to claim the tax refunds they’re entitled to without facing unnecessary red tape. This commonsense legislation ensures disaster victims aren’t penalized for circumstances beyond their control and provides much-needed relief during the recovery process.”
Background:
Taxpayers usually have three years to file a claim for credit or refund of any overpayments of tax. However, when a filing deadline is postponed due to a federally declared disaster or similar reason, the three-year “lookback period” for paying refunds is not increased.  As a result, some taxpayers who take advantage of a postponed filing deadline will not be able to obtain a refund.
Separately, the Internal Revenue Service (IRS) is required to demand payment within 60 days of an assessment, even if the payment deadline is postponed. As a result, the IRS may send letters demanding payments that have been postponed. This creates unnecessary confusion and stress for disaster victims.
To ensure that taxpayers impacted by disasters are treated like every other taxpayer when claiming their refunds, theDisaster Related Extension of Deadlines Actwould:
The American Institute of CPAs and the National Association of Realtors support the legislation.
Full text of the legislation is availableHERE.
Senator Tillis has been pushing for federal assistance for Western North Carolina since the moment Helene made landfall.
In addition to Senator Tillis’ legislative efforts, he has met with local leaders, residents, and elected officials across Western North Carolina including in: Asheville, Black Mountain, Boone, Burnsville, Canton, Clyde, Fairview, Flat Rock, Hendersonville, Hot Springs, Marshall, Morganton, Spruce Pine, Swannanoa, Waynesville and Wilkesboro.

###