Senate Passes Disaster Related Extension of Deadlines Act
The U.S. Senate recently passed H.R. 1491, the Disaster Related Extension of Deadlines Act, which requires the IRS to treat the postponement of the federal tax return deadline due to a federally declared disaster or certain other events as an extension for purposes of calculating the limit on a tax refund. The legislation now goes to President Donald Trump for his signature.
Under current law, a tax refund claim must be filed within three years of the date the federal tax return is filed, with some exceptions. The refund amount generally is limited to federal taxes paid within the three years preceding the refund claim plus any extension of the federal tax return deadline, known as the lookback period. The postponement of the federal tax return deadline has not been considered an extension for purposes of the lookback period. Under H.R. 1491, a federal tax return deadline postponed due to a federally declared disaster or certain other events must be treated as an extension for purposes of the lookback period.
Also under current law, the IRS is required to mail a notice and demand for tax payment within 60 days of an assessment but not before the tax payment due date. The bill clarifies that the tax payment due date includes the postponement of the tax payment deadline due to a federally declared disaster or certain other events.
The legislation is the third tax administration bill passed by unanimous consent in the Senate in 2025, following H.R. 517, the Filing Relief for Natural Disasters Act, and H.R. 998, the Internal Revenue Service Math and Taxpayer Help Act.