Filing Relief for Natural Disasters Act
4/12/2025, 1:06 PMSummary of Bill HR 517
Bill 119 HR 517, also known as the "Disaster Tax Relief and Airport and Airway Extension Act of 2021," aims to amend the Internal Revenue Code of 1986 in order to make changes to the rules for postponing certain deadlines in the event of a disaster.The bill specifically addresses the procedures for taxpayers and businesses who are affected by a disaster, such as a natural disaster or a pandemic, and need additional time to meet their tax obligations. It allows for the postponement of certain tax-related deadlines, such as filing tax returns or making tax payments, in order to provide relief to those impacted by the disaster.
Additionally, the bill includes provisions related to airport and airway funding, extending certain authorities and funding levels for the Federal Aviation Administration (FAA) and the Transportation Security Administration (TSA) through September 30, 2021. Overall, Bill 119 HR 517 seeks to provide necessary relief and support to individuals and businesses facing challenges due to disasters, while also ensuring the continued operation and funding of key aviation agencies.
Congressional Summary of HR 517
Filing Relief for Natural Disasters Act
This bill authorizes the Internal Revenue Service (IRS) to postpone federal tax deadlines for taxpayers affected by a qualified state declared disaster, upon written request by the state governor. The bill also increases the automatic extension of federal tax deadlines for certain taxpayers.
Under current law, the IRS may postpone federal tax deadlines for taxpayers affected by a federally declared disaster, including (but not limited to) deadlines for (1) filing federal tax returns, (2) paying federal taxes, (3) making retirement plan contributions, and (4) tax assessments and collections.
The bill authorizes the IRS to postpone such federal tax deadlines for taxpayers affected by a qualified state declared disaster upon written request by the state’s governor (or the District of Columbia mayor). Under the bill, a state includes the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.
The bill defines qualified state declared disaster as any natural catastrophe, fire, flood, or explosion that causes damage of sufficient severity and magnitude to warrant a request to postpone such federal tax deadlines.
Further, under current law, an automatic 60-day extension of such federal tax deadlines applies to certain relief workers, individuals killed or injured as a result of a federally declared disaster, and taxpayers whose principal residence, business, or tax records are located in a federally declared disaster area.
The bill increases to 120 days the automatic extension of federal tax deadlines for these taxpayers.
