President Trump Signs Ways and Means Bill Helping Victims of Natural Disasters

WASHINGTON, D.C. - Bipartisan Ways and Means legislation extending tax deadlines for victims of natural disasters is now law after President Trump signed the Disaster Related Extension of Deadlines Act (H.R. 1491), introduced by Representative Greg Murphy (NC-03) and Representative Jimmy Panetta (CA-19). The law aligns the deadline for claiming prior-year refunds or credits with the extended filing period granted to taxpayers impacted by natural disasters. The IRS is also prohibited under the new law from an all-too-common practice of prematurely mailing notices demanding payment to individuals in areas where the IRS has postponed payment deadlines due to natural disasters.

"Thank you, President Trump, for signing this bill into law and helping families recover from natural disasters. This law ensures Americans can remain focused on rebuilding their lives without the hassle of a premature IRS notice demanding payment or less time to claim a tax refund or credit, resources that could be used to repair damage caused by natural disasters," said Ways and Means Committee Chairman Jason Smith (MO-08). "I'm glad the Ways and Means Committee came together to solve this issue that has affected people across the country and I want to thank Representatives Murphy and Panetta for providing real relief to their districts and all Americans."

"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 President Trump for signing my bill into law to bring meaningful reform. I am also very appreciative of Chairman Smith for his leadership on the Ways and Means Committee and the unanimous, bipartisan support the bill received in Congress."

In 2023, the IRS sent over 1 million notices incorrectly to taxpayers in California recovering from a natural disaster informing individuals they must pay federal taxes in 60 days to avoid penalty. This policy has been listed as one of the top legislative recommendations by the National Taxpayer Advocate.

The bill advanced out of the Ways and Means Committee unanimously in February and received a unanimous vote in the House of Representatives.

Disaster Related Extension of Deadlines Act (H.R. 1491)
Implements two tax filing reforms for taxpayers living in areas affected by natural disasters: conforms the deadline for taxpayers to claim a credit or refund for a previous tax year to the IRS deadline to file tax and stops the IRS practice of prematurely mailing notices demanding tax payment.

• The IRS often postpones the filing and payment deadline for taxpayers affected by federally declared disasters. Often, the three-year window for taxpayers to claim a credit or refund for a previous tax year is not also similarly extended. Taxpayers affected by natural disasters are left with less time to claim a credit or refund than taxpayers who requested a filing postponement.
• The bill extends the three-year window for receiving a refund or credit when the IRS extends the filing deadline due to a natural disaster and ensures the automatic IRS payment deadline is extended to match any disaster-based filing deadline extension.

Click here for a fact sheet on the bill.