Overview
Title
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.
ELI5 AI
H. R. 1491 is a proposed rule that wants to give people more time to do their taxes if something big and bad, like a disaster or attack, makes it hard to do them on time. This means they could wait longer before they have to pay what they owe.
Summary AI
H. R. 1491, also known as the “Disaster Related Extension of Deadlines Act,” proposes changes to the Internal Revenue Code of 1986. The bill aims to extend certain tax deadlines when disasters, significant fires, terrorism, or military actions occur. Specifically, it would affect deadlines for filing tax returns and extend deadline considerations when issuing collection notices. The changes would apply to claims and notices issued after the act is enacted.
Published
Keywords AI
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Bill Statistics
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AnalysisAI
General Summary of the Bill
The proposed legislation, known as the "Disaster Related Extension of Deadlines Act," aims to amend the Internal Revenue Code of 1986. It seeks to extend certain tax filing and payment deadlines impacted by disasters, significant fires, or military actions. The bill essentially ensures that individuals or businesses affected by these events are not penalized for missing deadlines, as these are treated as extensions. In doing so, it acknowledges the potential disruptions caused by unforeseen calamities and provides relief to taxpayers by adjusting timelines for tax-related obligations.
Significant Issues
There are several notable issues within the bill's text:
Definition Ambiguity: The bill does not clearly define what constitutes a "disaster," "significant fire," or "terroristic or military actions." The absence of precise definitions can lead to varying interpretations, making the bill's application inconsistent.
Complex Language: The bill makes several references to specific sections of the Internal Revenue Code, using technical legal language. This complexity could hinder comprehension for the general public, reducing transparency.
Ambiguous Timeframes: The phrase "any period disregarded under this section" lacks clarity. It is not explicit about the circumstances or timeframes it covers, potentially confusing affected parties about when extensions apply.
Lack of Fiscal Impact Analysis: The bill does not discuss how these changes might impact tax collection or government revenue, leaving a critical aspect of fiscal planning unaddressed.
Broad Public Impact
The bill has the potential to provide relief to taxpayers affected by disasters, allowing them more time to meet their tax obligations without facing penalties. This flexibility is crucial for those dealing with the aftermath of natural calamities or unexpected disruptions, giving them one less thing to worry about during recovery.
At the same time, the broad language and lack of definition could result in uneven application. The absence of clarity may lead to uncertainty among the public regarding whether they qualify for deadline extensions, which could result in unintended penalties or disputes over eligibility.
Impact on Specific Stakeholders
Positive Impacts
Residents and Businesses in Disaster-Prone Areas: The bill provides a safety net for those prone to disruptions, allowing them to prioritize recovery without the immediate pressure of tax deadlines.
Tax Professionals and Advisors: With the potential increased complexity in determining eligibility and extensions, there may be a rise in demand for professional tax advice, benefiting those in the industry.
Negative Impacts
Tax Authorities: The lack of precise definitions and timeframes could lead to administrative challenges as tax authorities struggle to apply the extensions consistently and fairly.
Government Revenue: Without an analysis of fiscal impact, there is uncertainty about how extended deadlines could affect the timeliness of tax collections, potentially disrupting government budgeting and cash flow management.
In summary, while the bill aims to provide necessary relief to affected taxpayers, it presents challenges that need addressing to ensure it is both effective and fair. Clear definitions, simplified language, and thorough impact analysis would strengthen the bill’s ability to support the public and manage governmental operations efficiently.
Issues
The section 'Short title' does not define 'Disaster,' leading to ambiguity about what qualifies as a disaster for the purposes of this Act without clarification (Section 1).
In Section 2(a)(1), the complex language, including legal references, makes the bill difficult for the general public to understand, potentially reducing transparency and accessibility.
The phrase 'any period disregarded under this section' in Section 2(a)(1) and 2(b)(1)(B) is ambiguous and could cause confusion about the specific circumstances or timeframes it encompasses.
Section 2(b)(1)(B) mentions terms 'disaster, significant fire, or terroristic or military actions' without clear definitions, which may lead to varied and potentially inconsistent interpretations.
There is no discussion of the fiscal impact or how these changes might affect tax collection or revenue, which is critical for comprehensive fiscal planning and accountability (Section 2).
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this bill declares that it can be officially called the “Disaster Related Extension of Deadlines Act.”
2. Postponement of certain deadlines by reason of disasters made applicable to limitation on credit or refund Read Opens in new tab
Summary AI
The text discusses amendments to the Internal Revenue Code to extend deadlines due to disasters. Specifically, it allows certain tax filing and payment deadlines to be postponed if they are affected by disasters, fires, or military actions, ensuring those missed deadlines are not penalized by treating them as extensions.