Governors could request IRS disaster relief under Senate bill S 132

What does this do?

S 132 allows state governors to formally request that the IRS extend tax deadlines following a state-declared disaster, even if the federal government has not issued its own disaster declaration. The bill also doubles the minimum automatic extension period from 60 days to 120 days. These changes apply to the 50 states, Washington D.C., and U.S. territories including Puerto Rico, Guam, and the U.S. Virgin Islands.

Who does it affect?

The bill affects individual taxpayers and small business owners located in areas struck by natural disasters such as hurricanes, tornadoes, wildfires, floods, or earthquakes. It applies to anyone who might face IRS deadlines while dealing with disaster recovery.

Why does it matter?

Under current law, automatic IRS deadline relief is only available after a federal disaster declaration, which may not happen quickly or at all in some events. Expanding eligibility to state-declared disasters and extending the minimum relief period changes when and how long affected taxpayers have to meet IRS obligations.

Where does it stand?