[Pages H1353-H1354]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

DISASTER RELATED EXTENSION OF DEADLINES ACT

Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and
pass 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,
as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 1491

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

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.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Smith) and the gentleman from California (Mr. Panetta)
each will control 20 minutes.
The Chair recognizes the gentleman from Missouri.

General Leave

Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days to revise and extend their remarks
and include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of H.R. 1491, the Disaster
Related Extension of Deadlines Act, introduced by my Ways and Means
colleagues Representatives Murphy and Panetta. Both of their home
States, North Carolina and California respectively, are no strangers to
the toll of natural disasters. This legislation corrects a discrepancy
that can deny Americans affected by natural disaster their rightful tax
refund.
Often, the IRS postpones the filing and payment deadline for
taxpayers impacted by a natural disaster. Understandably, some
taxpayers living in a disaster area choose to file their taxes and wait
to pay the tax bill at a later date, freeing up resources to instead
help replace the items that they have lost. For the average taxpayer
who requests a filing extension, the deadline to claim a tax refund or
credit for that tax year is also extended; not so for the victims of
natural disasters. They do not receive the same amount of additional
time to claim a tax credit or refund as taxpayers who request filing
extensions.
This situation is fundamentally unfair. It potentially denies
Americans affected by a natural disaster their rightful tax refund that
they would have otherwise received had they not been struck by a
natural disaster and simply requested a filing extension.
This bill provides a straightforward solution that would fix this
issue. Victims of natural disasters would have additional time to claim
a refund in the same way that those who request a filing extension
receive additional time.
I urge my colleagues to stand with taxpayers and provide this measure
of tax relief to victims of natural disasters.
Mr. Speaker, I reserve the balance of my time.
Mr. PANETTA. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 1491, the Disaster Related Extension of
Deadlines Act, authored and introduced by my friend, the gentleman from
North Carolina (Mr. Murphy).
I thank the chairman of the Ways and Means Committee for doing an
excellent job in summarizing not just the issue but the solution with
this bipartisan legislation, for it is this type of legislation that
would ensure that tax deadlines remain aligned in disaster zones and
that those who have survived natural disasters are not penalized by
confusing collection notices or a shortened tax lookback period.
Now, currently, taxpayers have a 3-year lookback period after a
filing deadline to claim a refund or missed credits. However, when the
IRS extends filing deadlines for those affected by natural disasters,
the deadline for the lookback period is not extended. This leads
taxpayers, as you can imagine, Mr. Speaker, in disaster areas to lose
out on money that they are owed because their lookback period is
shorter than expected.
This bill would fix that, by aligning the lookback period with the
postponed tax deadline for disaster zones. Additionally, this bill
solves the problem of misaligned deadlines and confusing collection
notices after a natural disaster.
Since current law requires the IRS to send a notice and demand for
payment of tax within 60 days of processing a tax filing, individuals
in disaster zones who file early but wait to pay often get confusing
notices and demands for payment. These notices are sent long before
payment is due and also cause panic and confusion during the difficult
task of disaster recovery.
This bill, again, would fix that issue by requiring the IRS to take
into account tax deadlines postponed because of disasters when issuing
collection notices. It can take years to financially recover from a
natural disaster, as many of us in this House have experienced with our
constituents. Ensuring

[[Page H1354]]

those who are recovering can claim what they are owed and do not have
to worry about confusing collection notices is the absolute least that
we can do.
This bill is an easy win, and it is the type of policy that makes
government work and improves people's lives that we should be focused
more on in Congress. This bill is an example of how government should
help people. We are providing a plan based on a law that would help the
government better serve people, especially in a time of need.
This is why we should come together and support the bipartisan
Disaster Related Extension of Deadlines Act. I urge my colleagues to
support this bill that would help our government be better in helping
those constituents in times of need all across this country.
Mr. Speaker, I reserve the balance of my time.

{time} 1730

Mr. SMITH of Missouri. Mr. Speaker, I yield such time as he may
consume to the gentleman from North Carolina (Mr. Murphy), my favorite
Member from North Carolina's Third Congressional District.
Mr. MURPHY. Mr. Speaker, I rise today in support of my legislation,
H.R. 1491, the Disaster Related Extension of Deadlines Act.
I am blessed to live in eastern North Carolina, which is all too
familiar with the devastation caused by natural disasters. For coastal
Carolina, it is not a question of if but rather a question of when a
hurricane will hit my district. We stick out far in the ocean and have
a big bull's-eye target on us.
We are still recovering from Hurricane Florence, which occurred in
2018. Despite being 7 years ago, there are still homes and businesses
shuttered from the damage of that powerful hurricane.
It has now been 6 months since the Nation observed the decimation
that Hurricane Helene wreaked upon western North Carolina. It has been
one of the most devastating disasters in our Nation's history.
This historic storm led to catastrophic loss of life and property to
our neighbors in the west. In just 18 hours, over 30 inches of rain
came down in some areas, which surged downhill into rivers and valleys,
causing close to $80 billion in damage and resulting in over 100
deaths. Entire towns and communities were completely destroyed and
washed away.
It will take years, if not a decade, for western North Carolina to
fully recover from the damage inflicted by Hurricane Helene. Since that
time, while we have come a long way, western North Carolina is still
reeling from the effects of Hurricane Helene and will continue to feel
the effects of that storm for years to come.
It is important that Congress provide as much relief as soon as
possible to these victims.
H.R. 1491, the Disaster Related Extension of Deadlines Act, has two
important provisions that would not only help those impacted by
Hurricane Helene but all disaster victims nationwide.
The first provision amends the lookback period to ensure victims of
disasters have additional time to claim funds or credits that they
previously missed out upon.
Additionally, H.R. 1491 contains another provision that would prevent
disaster victims from receiving collection notices indicating that they
owe the IRS funds despite a postponement of tax filing.
When someone suffers from a natural disaster, the last thing on their
minds is their tax liability. They are trying to put a roof over their
head and find food for their family and clothing for their children.
I cannot begin to describe the sheer physical and emotional damage
that these people suffer.
In the case of Hurricane Helene, we saw thousands of homes and
businesses literally washed out and wiped out overnight. Victims are
still and will continue to process the trauma from that occurrence.
North Carolinians are resilient. It has been heartening to see the
entire North Carolina delegation come together and provide support for
those in the western part of the State.
Furthermore, the contributions of first responders, nonprofits, and
concerned private citizens from all across the State have greatly
improved response efforts. It may take years, but our neighbors in the
west know they have the full backing of everyone in North Carolina as
they continue to recover.
This is not a Republican issue nor a Democratic issue. It is an
American issue. All of us are at risk of suffering from natural
disasters. In these difficult times, we must come together as Americans
to pass commonsense legislation like H.R. 1491 to ensure that victims
of natural disasters are not burdened by our tax code.
Mr. Speaker, I thank my colleague, Congressman Jimmy Panetta, for
his partnership on this critical issue, and I thank Chairman Smith for
his support and efforts to help provide relief to disaster victims.
I encourage all of my colleagues to vote in favor of this bill so we
can offer relief to all disaster victims, especially those in western
North Carolina.
Mr. PANETTA. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I want to say briefly in closing that, as you have
heard, this legislation has tremendous bipartisan support and will
remove burdensome processes at the IRS to make government work better
for our constituents after a disaster.
I appreciate Mr. Murphy talking about his district in North Carolina
and the devastation that his constituents have experienced. In the 19th
Congressional District, I am at the edge of the continent as well, on
the west side of the continent, all the way across the country from Mr.
Murphy's district, but we, too, are at the tip of the spear when it
comes to floods, fires, storms, and other natural disasters. That is
why I think, as you heard from Mr. Murphy, and I agree, that this is
not a partisan issue.
Never should disaster assistance be a partisan issue. This has full
bipartisan support because full financial recovery after a natural
disaster can take years. Aligning tax deadlines from the IRS is the
absolute least that we can do for our constituents who are rebuilding
their lives.
Mr. Speaker, once again, I thank my colleagues, Representative Murphy
and Chairman Smith, for their work on this bill, and I encourage my
colleagues to support H.R. 1491, the Disaster Related Extension of
Deadlines Act.
Mr. Speaker, I yield back the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself the balance of my
time.
This bill passed out of the Ways and Means Committee with a united
vote from Republicans and Democrats. It is not hard to see why.
Disasters know no party affiliation and affect communities all across
the country.
In the last few weeks, communities I represent in southeastern and
south central Missouri were struck by 19 deadly tornadoes and storms. I
had the chance to visit and talk with the people impacted. I saw
destroyed homes, tossed cars, and crop damage. I also saw how
neighbors, churches, and charities spring into action to provide a warm
meal, temporary shelter, and hope to the families who lost so much.
This legislation treats Americans affected by natural disasters
fairly and ensures that the Federal Government is going to do its part
to be responsive to their needs.
Mr. Speaker, I urge all of my colleagues to support this legislation,
and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Smith) that the House suspend the rules
and pass the bill, H.R. 1491, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. SMITH of Missouri. Mr. Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.

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