Summary — H.R. 1491: Disaster Related Extension of Deadlines Act

Purpose

H.R. 1491 clarifies and reforms how certain tax deadlines are treated when they are postponed because of disasters (including federally declared disasters, significant fires, or terror/military actions). The bill ensures taxpayers granted postponements under Treasury Regulation section 7508A are not disadvantaged when filing refund/credit claims and that IRS collection notice timing properly accounts for disaster-related postponements.

Key provisions

• Adds a new subsection (f) to Internal Revenue Code (IRC) section 7508A:
  • Any period disregarded under section 7508A with respect to the time prescribed for filing a tax return is treated as an extension of time for filing for purposes of the limitations on refunds or credits under section 6511(b)(2)(A).
  • Effective for claims filed after the date of enactment.
• Amends IRC section 6303(b) (timing of IRS notice and demand):
  • Clarifies that the “last date prescribed for payment” of tax must be determined after taking into account any period disregarded under section 7508A.
  • Effective for notices issued after the date of enactment.

Problem addressed / background

Under current law, when a filing deadline is postponed for a disaster, the IRS may still apply the normal statutory lookback period for refund/credit claims (typically three years), which can shrink the time available to claim refunds for taxpayers impacted by disasters. Additionally, IRS collection notices may be issued without recognizing a taxpayer’s disaster-related extension, resulting in premature demand letters. This bill aligns the refund-claim limitation and IRS notice timing with disaster postponements.

Who is affected

• Taxpayers whose filing/payment deadlines are postponed under section 7508A (e.g., individuals and businesses in federally declared disaster areas).
• The Internal Revenue Service — administrative procedures for calculating refund limitation periods and sending collection notices will change.
• Potential indirect effects on tax professionals and state coordination where federal deadlines interact with state tax administration.

Legislative status and timeline

• Introduced and considered by the House Ways and Means Committee; reported as H. Rept. 119-43 (Mar. 27, 2025).
• Passed House under suspension of the rules, as amended, by recorded vote 423–0 (Roll No. 88) on March 31, 2025; motion to reconsider laid on the table (Apr. 1, 2025).
• Received in the Senate and referred to the Senate Committee on Finance on April 1, 2025.
• Primary sponsor: Rep. Gregory F. Murphy; notable cosponsors: Tim Moore and Jimmy Panetta. Companion bill: S. 1438.
• Committee included a Congressional Budget Office cost estimate in the report (no specific cost figures provided in the report excerpt).

Implementation notes

• Changes are statutory amendments to the IRC; effect is automatic for claims/notices filed/issued after enactment.
• Administrative guidance from the IRS will likely be needed to implement timing calculations and update notice templates and systems.