This bill modifies federal tax law to extend the lookback period for tax refunds and credits when a federally declared disaster occurs. Currently, when the IRS postpones tax filing deadlines due to a disaster, that postponement does not automatically extend the period during which taxpayers can claim refunds or credits for prior years. The legislation fixes this inconsistency by treating any disaster-related delay in filing deadlines as an extension for purposes of calculating the refund and credit limitation period. This means disaster victims will have the same amount of extra time to file for refunds or credits as they have to file their tax returns. The change applies to all refund and credit claims filed after April 15, 2024, and primarily benefits individuals and businesses affected by federally declared disasters who may have missed the normal deadline to claim prior year refunds.
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