WASHINGTON, D.C. – The IRS will be more responsive to taxpayer needs – including those impacted by natural disasters – under six bipartisan Ways and Means bills approved by the House of Representatives. The measures reform IRS tax administrative rules that needlessly complicate the process of filing and paying federal taxes. Examples of reform include treating digital tax filings and payments the same as paper returns and payments and requiring the IRS to clearly explain any allegation of math errors that require adjustments. Given the dramatic rise in stolen tax refund checks, the House also voted to require the IRS to find alternate ways for taxpayers to receive their replacement refunds than simply through the mail. 

Several of the bills specifically improve tax rules for Americans affected by natural disasters – including providing more time to Americans rebuilding from tornadoes, wildfires, hurricanes, or other disasters, to file their taxes. 

Ways and Means Committee Chairman Jason Smith (MO-08) applauded the bipartisan House passage of this legislation as a win for taxpayers:

“President Trump was elected on the promise of finally making the government work better for working people. This bipartisan legislation helps fulfill that mandate and makes improvements to tax administration that will make it easier for the American people to file their taxes. Those who are rebuilding after a natural disaster particularly need help filing taxes, which is why this set of bills lightens the load for taxpayers in communities struck by a hurricane, tornado, or some other disaster. With Tax Day just a few days away, we must look for common-sense, bipartisan ways to make filing taxes less of a hassle.”

All six bills approved by the House also received unanimous support in the Ways and Means Committee. 

H.R. 1155 – Recovery of Stolen Checks Act
Requires the IRS to create a process for taxpayers to request a replacement via direct deposit for a stolen paper check.

• If a check is determined to be stolen or lost, and not cashed, a taxpayer will receive a replacement check once the original check is cancelled, however many taxpayers are having their replacement checks stolen as well.
• Taxpayers who have a check stolen are then unable to request that the replacement check be sent via direct deposit.
• This bill requires the Secretary of the Treasury to establish processes and procedures under which taxpayers, who are otherwise eligible to receive an amount by paper check in replacement of a lost or stolen paper check, may elect to receive such amount by direct deposit.
• This bill is a valuable step in combating fraud. Providing taxpayers with the option to use direct deposit for a replacement check ensures the replacement check is not stolen again. 
• The legislation complements a March executive order from President Trump phasing out the distribution of paper checks as a means of fighting waste, fraud, and abuse in the federal government. 

Read the one pager here. 

H.R. 997 – National Taxpayer Advocate Enhancement Act
Prevents IRS interference with National Taxpayer Advocate (NTA) personnel by granting the NTA responsibility for its attorneys.

• In advocating for taxpayer rights, the National Taxpayer Advocate often requires independent legal advice. 
• Currently, staff hired by the National Taxpayer Advocate is accountable to internal IRS counsel, not the Taxpayer Advocate, creating a potential conflict of interest to the detriment of the taxpayer.
• The bill authorizes the National Taxpayer Advocate to hire attorneys who report directly to her, helping establish independence from the IRS. 

Read the one pager here. 

H.R. 998 – Internal Revenue Service Math and Taxpayer Help Act
Requires the IRS to notify taxpayers of the specific reasoning for math errors and provides 60 days to challenge the IRS’s assessment of the alleged error.

• Each year, the IRS sends millions of “math error” notices to taxpayers that propose to adjust their tax liabilities.
• These notices often do not explain the reasons for the adjustments, and some are never received by the taxpayer due to lost mail.
• The IRS is not currently required to inform taxpayers that they must dispute the adjustments within 60 days if they disagree or generally forfeit their right to do so.
• As a result, many taxpayers fail to dispute the IRS assessment. 
• The bill requires the IRS to ensure all math error notices provide clear explanation of the alleged error including showing the mathematical change and informs taxpayers they have 60 days to challenge the alleged math error. 

Read the one pager here. 

H.R. 1152 – Electronic Filing and Payment Fairness Act
Ensures payments electronically submitted to the IRS are treated as fairly as those done through the mail. 

• Currently, if a taxpayer mails a payment or tax return to the IRS that is postmarked by midnight on the due date, the payment or tax return will be considered timely even if it is received a week later.
• However, if a taxpayer submits the same payment or return electronically on the due date, it may be considered late if the IRS receives it and processes it on the next day.
• In Fiscal Year 2023, more than 213 million—79% of all filings— returns and other forms were filed electronically.
• The bill provides that electronic payments and documents submitted by midnight on the due date will be considered timely. 

Read the one pager here. 

H.R. 1491 – Disaster Related Extension of Deadlines Act
Implements two tax filing reforms for taxpayers living in areas affected by natural disasters. Conforms the deadline for taxpayers to claim a credit or refund for a previous tax year to the IRS deadline to pay the credit and stops the IRS practice of prematurely mailing notices demanding tax payment. 

• The IRS often postpones the filing and payment deadline for taxpayers affected by federally declared disasters. Often, the three-year window for taxpayers to claim a credit or refund for a previous tax year is not also similarly extended. Taxpayers affected by natural disasters are left with less time to claim a credit or refund than taxpayers who requested a filing postponement. 
• The bill extends the three-year window for receiving a refund or credit when the IRS extends the filing deadline due to a natural disaster and ensures the automatic IRS payment deadline is extended to match any disaster-based filing deadline extension. 

Click here for a fact sheet on the bill. 

H.R. 517 – Filing Relief for Natural Disasters Act
Authorizes the Treasury Secretary, in consultation with FEMA, to postpone tax deadlines for Americans in state-declared disaster areas that have not yet received a federal disaster declaration. 

• The IRS currently has the authority to postpone tax filing deadlines for taxpayers impacted by federally declared disasters.
  • However, it may take days or even weeks for the federal government to issue a federal major disaster declaration. 
• This bill authorizes the Treasury Secretary, after consulting with the Federal Emergency Management Agency, to postpone tax filing deadlines for taxpayers impacted by natural disasters and emergencies, as soon as the governor of a state declares a disaster or state of emergency. 
• Additionally, this bill expands the current mandatory extension following a federally declared disaster declaration from 60 to 120 days. 

Click here for a fact sheet on the bill.