H.R. 1491, Disaster Related Extension of Deadlines Act

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.

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.