[House Report 119-43]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-43
======================================================================
DISASTER RELATED EXTENSION OF DEADLINES ACT
_______
March 27, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Smith of Missouri, from the Committee on Ways and Means, submitted
the following
R E P O R T
[To accompany H.R. 1491]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 1491) to amend the Internal Revenue Code of 1986 to
make the postponement of certain deadlines by reason of
disasters applicable to the limitation on credit or refund, and
to take postponements into account for purposes of sending
collection notices, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND....................................... 2
A. Purpose and Summary................................. 2
B. Background and Need for Legislation................. 2
C. Legislative History................................. 3
D. Designated Hearing.................................. 4
II. EXPLANATION OF THE BILL...................................... 4
III. VOTE OF THE COMMITTEE........................................ 7
IV. BUDGET EFFECTS OF THE BILL................................... 8
A. Committee Estimate of Budgetary Effects............. 8
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 8
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 8
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE... 10
A. Committee Oversight Findings and Recommendations.... 10
B. Statement of General Performance Goals and
Objectives......................................... 10
C. Applicability of House Rule XXI, Clause 5(b)........ 10
D. Information Relating to Unfunded Mandates........... 10
E. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 10
F. Duplication of Federal Programs..................... 10
G. Tax Complexity Analysis............................. 11
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED........ 11
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Disaster Related Extension of
Deadlines Act''.
SEC. 2. POSTPONEMENT OF CERTAIN DEADLINES BY REASON OF DISASTERS MADE
APPLICABLE TO LIMITATION ON CREDIT OR REFUND.
(a) Extension of Time for Filing Return.--
(1) In general.--Section 7508A of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(f) Application to Limitation on Credit or Refund.--For purposes of
section 6511(b)(2)(A), any period disregarded under this section with
respect to the time prescribed for filing any return of tax shall be
treated as an extension of time for filing such return.''.
(2) Effective date.--The amendment made by this subsection
shall apply to claims filed after the date of the enactment of
this Act.
(b) Collection Notices.--
(1) In general.--Section 6303(b) of such Code is amended--
(A) by striking ``Except'' and inserting the
following:
``(1) In general.--Except'', and
(B) by adding at the end the following new paragraph:
``(2) Postponement by reason of disaster, significant fire,
or terroristic or military actions.--For purposes of paragraph
(1), the last date prescribed for payment of any tax shall be
determined after taking into account any period disregarded
under section 7508A.''.
(2) Effective date.--The amendments made by this subsection
shall apply to notices issued after the date of the enactment
of this Act.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
The bill, H.R. 1491, the ``Disaster Related Extension of
Deadlines Act,'' as ordered reported by the Committee on Ways
and Means on February 26, 2025.
Under the provision, any period disregarded under section
7508A with respect to the time prescribed for filing any return
of tax is treated as an extension of time for purposes of
determining the limitations on a refund or credit under section
6511(b)(2)(A).
In addition, under the provision, the last date prescribed
for payment of any tax under section 6303 is clarified to take
into account any period disregarded under section 7508A.
B. Background and Need for Legislation
The Committee on Ways and Means has conducted oversight of
the IRS and the need for modernization. On February 11, 2025,
the Committee held a hearing titled ``IRS Return on Investment
and the Need for Modernization,'' to examine the lack of return
on investment from funding provided by to the IRS by the
Inflation Reduction Act and the need for information technology
modernization at the agency.\1\ During the Committee's
consideration of how to modernize the administration of the tax
laws, the Committee recognized several issues faced by
taxpayers who are recovering from natural disasters, one being
the strict time period that a taxpayer must file a claim for a
credit or a refund when they have been affected by a natural
disaster. Another is receiving a mailing notice from the IRS 60
days after the filing deadline demanding a tax payment, that
does not account for the taxpayer's extension granted under a
federal natural disaster declaration.
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\1\H. Comm. On Ways and Means, Hearing: IRS Return on Investment
and the Need for Modernization (Feb 11, 2025) https://
waysandmeans.house.gov/event/oversight-subcommittee-hearing-on-irs-
return-on-investment-and-the-need-for-modernization/.
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Currently, taxpayers who file tax returns by the April 15
filing deadline ordinarily have the opportunity to file a claim
for a credit or refund of any overpayments of tax until April
15 three years later. However, if a filing deadline is
postponed beyond the typical April 15 deadline due to a natural
disaster, the taxpayer's allotted time to file a claim for a
credit or a refund does not change. This leads to a decreased
period of time in which a taxpayer must file a claim for a
credit or refund, during the time that the taxpayer is
recovering from a natural disaster.
The IRS is required to send a letter of notice and demand
to the taxpayer demanding payment within 60 days of assessment,
but not before the last date prescribed for the payment of
tax.\2\ Under current law, the IRS does not take into account a
taxpayers extension related to natural disasters, often leading
to the agency sending notice and demand letters prematurely.
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\2\Sec. 6303(a).
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Taxpayers should not be burdened by inadvertent notice and
demand letters from the IRS that are sent erroneously without
consideration of the taxpayer's extension granted due to a
natural disaster.
This bill brings parity to the tax filing extension that is
granted due to a federally designated natural disaster to the
three-year lookback period to file a claim for a credit or a
refund and ensures the IRS does not send notice and demand
letters prematurely. Taxpayers who are facing the difficulties
of a natural disaster should receive the same timeline to file
a claim for a credit or a refund and should not be burdened by
erroneous notice and demand letters.
The Committee on Ways and Means is committed to providing
fair treatment to taxpayers who face the challenges of
recovering from a natural disaster. This bill brings parity to
the extension provided to taxpayers.
C. Legislative History
Background
H.R. 1491 was introduced on February 21, 2025, and was
referred to the Committee on Ways and Means.
Committee Hearings
On February 11, 2025, the Committee on Ways and Means held
a hearing titled, ``IRS Return on Investment and the Need for
Modernization.''\3\
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\3\Id.
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Committee Action
The Committee on Ways and Means marked up H.R. 1491, the
``Disaster Related Extension of Deadlines Act'' on February 26,
2025, and ordered the bill, as amended, favorably reported
(with a quorum being present).
D. Designated Hearing
Pursuant to clause 3(c)(6) of Rule XIII, the following
hearing was used to develop and consider H.R. 1491:
``IRS Return on Investment and the Need for Modernization''
on February 11, 2025.
II. EXPLANATION OF THE BILL
A. Postponement of Certain Deadlines by Reason of Disasters Made
Applicable to Limitation on Credit or Refund (Sec. 2 of the Bill and
New Sec. 7508A(f) and Sec. 6303(b) of the Code)
PRESENT LAW
General time limits for filing tax returns and paying estimated tax
Individuals generally are required to file their Federal
income tax returns by April 15 of the year following the close
of a taxable year.\4\ Present law also provides that the
Secretary may grant reasonable extensions of time for filing
such returns.\5\ Treasury regulations provide upon application
on the proper form, an automatic six-month extension (until
October 15 for calendar-year individuals) for any individual
timely filing that form and paying the amount of tax estimated
to be due.\6\
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\4\Sec. 6072.
\5\Sec. 6081.
\6\Treas. Reg. sec. 1.6081-4.
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In general, individuals are required to make quarterly
estimated tax payments by April 15, June 15, September 15, and
January 15 of the following taxable year. Wage withholding is
considered to be a payment of estimated taxes.
Suspension of time periods
In general, the Secretary may specify a period of up to one
year that may be disregarded for performing various acts under
the Code, such as filing tax returns, paying taxes, or filing a
claim for credit or refund of tax, for any taxpayer determined
by the Secretary to be affected by a Federally declared
disaster,\7\ a significant fire,\8\ or a terroristic or
military action\9\ with respect to any tax liability of the
taxpayer.\10\ In addition, the period specified by the
Secretary may be disregarded in determining the amount of any
interest, penalty, additional amount, or addition to tax, and
the amount of any credit or refund.
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\7\As defined by section 165(i)(5)(A).
\8\Significant fire means any fire with respect to which assistance
is provided under section 420 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act.
\9\As defined in section 692(c)(2).
\10\Sec. 7508A.
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There are special rules provided for pension plans and
other employee benefit plans. The Secretary may prescribe a
period of up to one year which may be disregarded in
determining the date by which any action by a pension or other
employee benefit plan, or by any sponsor, administrator,
participant, beneficiary, or other person with respect to such
plan, affected by a Federally declared disaster, a significant
fire, or a terroristic or military action, would be required or
permitted to be completed. A plan is not treated as operating
in a manner inconsistent with its terms or in violation of its
terms merely due to disregarding any such periods.
The suspension of time may apply to a wide variety of acts,
including the (1) filing of any return of income, estate, gift,
employment, or excise tax; (2) payment of any income, estate,
gift, employment, or excise tax; (3) allowance of a credit or
refund of any tax; (4) assessment of any tax; (5) collection of
the amount of any liability in respect of any tax; (6) notice
or demand for payment of any tax or with respect to any
liability of tax; and (7) any other act required or permitted
under the internal revenue laws specified by the Secretary of
the Treasury.\11\ The types of acts for which time may be
suspended are identified in a related provision and
incorporated by reference.\12\
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\11\Treas. Reg. sec. 301.7508A-1. The regulations note that the IRS
may postpone deadlines for performing certain acts with respect to
taxes other than taxes not administered by the IRS such as firearms tax
(chapter 32, section 4181); harbor maintenance tax (chapter 36, section
4461); and alcohol and tobacco taxes (subtitle E).
\12\Sec. 7508(a)(1)(A) through (K). Under Treasury regulations,
additional acts were added to this list with respect to affected
pension plans and affected taxpayers with respect to such plans: Making
contributions to a qualified retirement plan (within the meaning of
section 4974(c)) under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or
404(m)(2); making distributions under section 408(d)(4);
recharacterizing contributions under section 408A(d)(6); or making a
rollover under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3).
Treas. Reg. sec. 301.7508A-1(c)(1)(iii). In addition, Revenue Procedure
2018-58, 2018-50 I.R.B. 990, supplements the list of postponed acts in
section 7508(a)(1) and Treasury Regulation section 301.7508A-1(c)(1)
with an additional list of time-sensitive acts.
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For a tax-related deadline to be postponed under this
authority, the Internal Revenue Service (``IRS'') generally
will publish, as soon as practicable after the declaration of
the disaster, significant fire, or occurrence of a terroristic
or military action, a revenue ruling, revenue procedure,
notice, announcement, news release, or other guidance
authorizing the postponement and describing the acts postponed,
the postponement period, and the location of the covered
disaster area.\13\
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\13\Treas. Reg. sec. 301.7508A-1(e).
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Mandatory 60-day suspension
In the case of a Federally declared disaster, qualified
taxpayers have a mandatory 60-day period that is disregarded in
determining whether the acts listed above were performed in the
time prescribed; the amount of any interest, penalty,
additional amount, or addition to tax; and the amount of any
credit or refund.\14\ The 60-day period begins on the earliest
incident date specified in the declaration to which the
relevant disaster area relates and ends on the date which is
the later of 60 days after the earliest incident date so
specified or the date such declaration was issued. In the case
of multiple declarations, a separate 60-day period shall be
calculated with respect to each declaration. The 60-day period
is disregarded in determining under the internal revenue laws,
in respect of any tax liability of a qualified taxpayer,
whether any of the specified acts to which the extension
applies were performed within the time prescribed (without
regard to any extensions otherwise provided for periods after
the 60-day period). The mandatory 60-day period provided is in
addition to, or concurrent with, any period of suspension
provided by the Secretary. In the case of multiple
declarations, a separate 60-day period shall be calculated with
respect to each declaration.
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\14\Sec. 7805A(d)(1).
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Qualified taxpayers are (1) any individual whose principal
residence is located in a disaster area, (2) any taxpayer if
the taxpayer's principal place of business (other than the
business of performing services as an employee) is located in a
disaster area, (3) any individual who is a relief worker
affiliated with a recognized government or philanthropic
organization and who is assisting in a disaster area, (4) any
taxpayer whose records necessary to meet a deadline for the
acts listed above are maintained in a disaster area, (5) any
individual visiting a disaster area who was killed or injured
as a result of the disaster, and (6) solely with respect to a
joint return, any spouse of an individual who is a qualified
taxpayer.
Statute of limitations on credit or refund
In general, a taxpayer is required to file a claim for
credit or refund of an overpayment of tax within three years
from the time the return was filed or two years from the time
the tax was paid, whichever expires later.\15\ If the taxpayer
did not file a return, the taxpayer is required to file a claim
for credit or refund within two years from the time the tax was
paid.\16\ No credit or refund is allowed or made after the
expiration of this period of limitation, unless the taxpayer
files a claim for credit or refund within such period.\17\
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\15\Sec. 6511(a).
\16\Ibid.
\17\Sec. 6511(b)(1).
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If a taxpayer files a claim for credit or refund during the
three-year limitation period, the amount of credit or refund is
limited to the portion of tax paid within the three years
immediately before filing the claim plus the period of any
extension of time for filing the return.\18\ If the claim was
not filed within the three-year period, the amount of credit or
refund is limited to the two years immediately preceding the
filing of the claim.\19\
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\18\Sec. 6511(b)(2)(A). Any withholding and estimated taxes paid
are deemed paid on April 15th in the year following the close of the
tax year in which the tax is allowable as a credit. Sec. 6513(b).
\19\Sec. 6511(b)(2)(B).
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Notice and demand for payment
Under present law, the IRS is required to mail to the
taxpayer a notice and demand for payment within 60 days of
assessment, but not before the last date prescribed for the
payment of tax.\20\ An assessment generally occurs after a
taxpayer files a return showing a tax liability owed,
regardless of whether the amount is paid at that time. As
explained above, the date by which notice or demand for tax is
required to be mailed is among the events or actions specified
as subject to postponement due to Federally declared disasters,
etc.\21\
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\20\Sec. 6303(a).
\21\Sec. 7508(a)(1)(H) and Treas. Reg. sec. 301.7508A-1(b)(4). In
June 2023, for example, the IRS sent taxpayers who qualified for
disaster relief but had not yet paid in full, a statutory notice of
underpayment despite being granted a postponement of time under section
7508A. To clarify the confusion generated by these letters, the IRS
sent a second letter advising taxpayers in Federally declared disaster
areas of the tax relief available to them, including the fact that they
had additional time for filing and payment. Inspector General for Tax
Administration, Department of the Treasury, Additional Actions Are
Needed to Clearly Inform Taxpayers in Federally Declared Disaster Areas
of Balance Due Payment Postponement Timeframes (TIGTA 2024--IE-R019),
Appendix III, Management Response to the Draft Report, p. 15, September
24, 2024.
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REASONS FOR CHANGE
The Committee believes that taxpayers eligible for relief
by reason of Federally declared disaster, significant fire,
terroristic or military action should not be treated
differently than taxpayers eligible for relief for other
reasons. The disparity arises because while claims for refunds
are generally limited to amounts paid or deemed paid within
three years of filing the claim (including extensions),
disaster-related postponement relief is not considered an
extension for refund claim purposes. Therefore, amounts paid
timely, such as withholding and estimated taxes, may not be
eligible for refund in certain circumstances because they were
deemed paid before the end of the postponement period. Thus,
the Committee believes that Congress should modify the Code to
ensure that disaster victims who have overpaid their taxes will
be able to claim a refund for these overpayments, as long as
their claim is filed within three years of the date the return
was filed.
In addition, the Committee believes that taxpayers affected
by disasters, etc. who are eligible for extension relief should
not receive letters demanding payment from the IRS for tax
liabilities not yet due. Specifically, the Committee believes
that the Code should be modified such that affected taxpayers
who choose to file their return early without including payment
will not receive notice and demand letters before their tax
liability is due.
EXPLANATION OF PROVISION
Under the provision, any period disregarded under section
7508A with respect to the time prescribed for filing any return
of tax is treated as an extension of time for purposes of
determining the limitations on a refund or credit under section
6511(b)(2)(A).
In addition, under the provision, the last date prescribed
for payment of any tax under section 6303 is clarified to take
into account any period disregarded under section 7508A.
EFFECTIVE DATES
The provision with respect to the treatment of the
disregarded period as an extension of time applies to claims
filed after the date of enactment.
The provision with respect to the determination of the last
date prescribed for payment applies to notices issued after the
date of enactment.
III. VOTE OF THE COMMITTEE
Pursuant to clause 3(b) of rule XIII of the Rules of the
House of Representatives, the following statement is made
concerning the vote of the Committee on Ways and Means in its
consideration of H.R. 1491, the ``Disaster Related Extension of
Deadlines Act,'' on February 26, 2025.
The bill, H.R. 1491, the ``Disaster Related Extension of
Deadlines Act'' was ordered favorably reported to the House of
Representatives as amended by a roll call vote of 44 yeas to 0
nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ X ......... ......... Mr. Neal........ X ......... .........
Mr. Buchanan.................. X ......... ......... Mr. Doggett..... X ......... .........
Mr. Smith (NE)................ X ......... ......... Mr. Thompson.... X ......... .........
Mr. Kelly..................... X ......... ......... Mr. Larson...... X ......... .........
Mr. Schweikert................ X ......... ......... Mr. Davis....... X ......... .........
Mr. LaHood.................... X ......... ......... Ms. Sanchez..... X ......... .........
Mr. Arrington................. X ......... ......... Ms. Sewell...... X ......... .........
Mr. Estes..................... X ......... ......... Ms. DelBene..... X ......... .........
Mr. Smucker................... X ......... ......... Ms. Chu......... X ......... .........
Mr. Hern...................... X ......... ......... Ms. Moore (WI).. X ......... .........
Mrs. Miller (WV).............. X ......... ......... Mr. Boyle....... X ......... .........
Dr. Murphy.................... X ......... ......... Mr. Beyer....... X ......... .........
Mr. Kustoff................... X ......... ......... Mr. Evans....... X ......... .........
Mr. Fitzpatrick............... X ......... ......... Mr. Schneider... X ......... .........
Mr. Steube.................... X ......... ......... Mr. Panetta..... X ......... .........
Ms. Tenney.................... X ......... ......... Mr. Gomez....... X ......... .........
Mrs. Fischbach................ X ......... ......... Mr. Horsford.... ........ ......... .........
Mr. Moore (UT)................ X ......... ......... Ms. Plaskett.... X ......... .........
Ms. Van Duyne................. X ......... ......... Mr. Suozzi...... X ......... .........
Mr. Feenstra.................. X ......... .........
Ms. Malliotakis............... X ......... .........
Mr. Carey..................... X ......... .........
Mr. Yakym..................... X ......... .........
Mr. Miller (OH)............... X ......... .........
Mr. Bean...................... X ......... .........
Mr. Moran..................... X ......... .........
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IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 1491 as
reported. The estimate prepared by the Congressional Budget
Office (CBO) is included below.
The bill is estimated to have a negligible effect on
Federal fiscal year budget receipts for the period 2025 through
2034.
B. Statement Regarding New Budget Authority and Tax Expenditures Budget
Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority.
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 1491 would amend the Internal Revenue Code to modify
the statute of limitations on filing for a tax credit or tax
refund in the case of declared disasters. The bill would treat
any filing extension granted in such cases as applicable to the
allowable period for filing a return to receive a tax credit or
tax refund. The bill would also apply the extension to the date
used to determine when the Internal Revenue Service must mail a
notice and demand for payment.
The Congressional Budget Act of 1974, as amended,
stipulates that revenue estimates provided by the staff of the
Joint Committee on Taxation (JCT) are the official estimates
for all tax legislation considered by the Congress. CBO
therefore incorporates such estimates into its cost estimates
of the effects of legislation. The revenue estimates for the
bill were provided by JCT.\1\ JCT estimates that the bill would
reduce federal revenues by an insignificant amount over the
2025-2035 period.
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\1\See Joint Committee on Taxation Description of H.R. 1491, the
``Disaster Related Extension of Deadlines Act,'' JCX-13-25 (February
24, 2025), www.jct.gov/publications/2025/jcx-13-25, and Description of
the Chairman's Amendment in the Nature of a Substitute to H.R. 1491,
the ``Disaster Related Extension of Deadlines Act,'' JCX-15-25
(February 25, 2025), www.jct.gov/publications/2025/jcx-15-25.
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CBO estimates that it would cost less than $500,000 over
the 2025-2030 period to implement the bill. Any related
spending would be subject to the availability of appropriated
funds.
The CBO staff contact for this estimate is Jennifer Shand.
The estimate was reviewed by John McClelland, Director of Tax
Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee made findings and
recommendations that are reflected in this report.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill does not authorize funding, so no statement of general
performance goals and objectives is required.
C. Applicability of House Rule XXI, Clause 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the bill, and states that the bill does not
provide such a Federal income tax rate increase.
D. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
E. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
F. Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
G. Tax Complexity Analysis
Section 4022(b) of the Internal Revenue Service Reform and
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the
staff of the Joint Committee on Taxation (in consultation with
the Internal Revenue Service and the Treasury Department) to
provide a tax complexity analysis. The complexity analysis is
required for all legislation reported by the Senate Committee
on Finance, the House Committee on Ways and Means, or any
committee of conference if the legislation includes a provision
that directly or indirectly amends the Internal Revenue Code
and has widespread applicability to individuals or small
businesses.
The staff of the Joint Committee on Taxation has determined
that there are no provisions that are of widespread
applicability to individuals or small businesses.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
A. Text of Existing Law Amended or Repealed by the Bill, as Reported
Pursuant to clause 3(e) of rule XIII of the Rules of the
House of Representatives, the text of each section proposed to
be repealed by the bill is shown below:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
INTERNAL REVENUE CODE OF 1986
* * * * * * *
Subtitle F--Procedure and Administration
* * * * * * *
CHAPTER 64--COLLECTION
* * * * * * *
Subchapter A--GENERAL PROVISIONS
* * * * * * *
SEC. 6303. NOTICE AND DEMAND FOR TAX.
(a) General rule.--Where it is not otherwise provided by this
title, the Secretary shall, as soon as practicable, and within
60 days, after the making of an assessment of a tax pursuant to
section 6203, give notice to each person liable for the unpaid
tax, stating the amount and demanding payment thereof. Such
notice shall be left at the dwelling or usual place of business
of such person, or shall be sent by mail to such person's last
known address.
(b) Assessment prior to last date for payment.--[Except]
(1) In general._Except where the Secretary believes
collection would be jeopardized by delay, if any tax is
assessed prior to the last date prescribed for payment
of such tax, payment of such tax shall not be demanded
under subsection (a) until after such date.
(2) Postponement by reason of disaster, significant
fire, or terroristic or military actions.--For purposes
of paragraph (1), the last date prescribed for payment
of any tax shall be determined after taking into
account any period disregarded under section 7508A.
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CHAPTER 77--MISCELLANEOUS PROVISIONS
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SEC. 7508A. AUTHORITY TO POSTPONE CERTAIN DEADLINES BY REASON OF
FEDERALLY DECLARED DISASTER, SIGNIFICANT FIRE, OR
TERRORISTIC OR MILITARY ACTIONS.
(a) In General.--In the case of a taxpayer determined by the
Secretary to be affected by a federally declared disaster (as
defined by section 165(i)(5)(A)), a significant fire, or a
terroristic or military action (as defined in section
692(c)(2)), the Secretary may specify a period of up to 1 year
that may be disregarded in determining, under the internal
revenue laws, in respect of any tax liability of such
taxpayer--
(1) whether any of the acts described in paragraph
(1) of section 7508(a) were performed within the time
prescribed therefor (determined without regard to
extension under any other provision of this subtitle
for periods after the date (determined by the
Secretary) of such disaster, fire, or action),
(2) the amount of any interest, penalty, additional
amount, or addition to the tax for periods after such
date, and
(3) the amount of any credit or refund.
(b) Special Rules Regarding Pensions, etc..--In the case of a
pension or other employee benefit plan, or any sponsor,
administrator, participant, beneficiary, or other person with
respect to such plan, affected by a disaster, fire, or action
described in subsection (a), the Secretary may specify a period
of up to 1 year which may be disregarded in determining the
date by which any action is required or permitted to be
completed under this title. No plan shall be treated as failing
to be operated in accordance with the terms of the plan solely
as the result of disregarding any period by reason of the
preceding sentence.
(c) Special Rules for Overpayments.--The rules of section
7508(b) shall apply for purposes of this section.
(d) Mandatory 60-day Extension.--
(1) In general.--In the case of any qualified
taxpayer, the period--
(A) beginning on the earliest incident date
specified in the declaration to which the
disaster area referred to in paragraph (2)
relates, and
(B) ending on the date which is 60 days after
the later of such earliest incident date
described in subparagraph (A) or the date such
declaration was issued,
shall be disregarded in determining, under the internal
revenue laws, in respect of any tax liability of such
qualified taxpayer, whether any of the acts described
in subparagraphs (A) through (F) of section 7508(a)(1)
were performed within the time prescribed therefor
(determined without regard to extension under any other
provision of this subtitle for periods after the date
determined under subparagraph (B)).
(2) Qualified taxpayer.--For purposes of this
subsection, the term ``qualified taxpayer'' means--
(A) any individual whose principal residence
(for purposes of section 1033(h)(4)) is located
in a disaster area,
(B) any taxpayer if the taxpayer's principal
place of business (other than the business of
performing services as an employee) is located
in a disaster area,
(C) any individual who is a relief worker
affiliated with a recognized government or
philanthropic organization and who is assisting
in a disaster area,
(D) any taxpayer whose records necessary to
meet a deadline for an act described in section
7508(a)(1) are maintained in a disaster area,
(E) any individual visiting a disaster area
who was killed or injured as a result of the
disaster, and
(F) solely with respect to a joint return,
any spouse of an individual described in any
preceding subparagraph of this paragraph.
(3) Disaster area.--For purposes of this subsection,
the term ``disaster area'' means an area in which a
major disaster for which the President provides
financial assistance under section 408 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5174) occurs.
(4) Application to rules regarding pensions.--In the
case of any person described in subsection (b), a rule
similar to the rule of paragraph (1) shall apply for
purposes of subsection (b) with respect to--
(A) making contributions to a qualified
retirement plan (within the meaning of section
4974(c)) under section 219(f)(3), 404(a)(6),
404(h)(1)(B), or 404(m)(2),
(B) making distributions under section
408(d)(4),
(C) recharacterizing contributions under
section 408A(d)(6), and
(D) making a rollover under section 402(c),
403(a)(4), 403(b)(8), or 408(d)(3).
(5) Coordination with periods specified by the
Secretary.--Any period described in paragraph (1) with
respect to any person (including by reason of the
application of paragraph (4)) shall be in addition to
(or concurrent with, as the case may be) any period
specified under subsection (a) or (b) with respect to
such person.
(6) Multiple declarations.--For purposes of paragraph
(1), in the case of multiple declarations relating to a
disaster area which are issued within a 60-day period,
a separate period shall be determined under such
paragraph with respect to each such declaration.
(e) Significant Fire.--For purposes of this section, the term
``significant fire'' means any fire with respect to which
assistance is provided under section 420 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act.
(f) Application to Limitation on Credit or Refund.--For
purposes of section 6511(b)(2)(A), any period disregarded under
this section with respect to the time prescribed for filing any
return of tax shall be treated as an extension of time for
filing such return.
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