New Tax Relief Act Expands Help After State-Declared Disasters

28 Jul 2025 New Tax Relief Act Expands Help After State-Declared Disasters

Congress has passed new legislation to allow the IRS to quickly offer tax relief after state-declared disasters or emergencies, without having to wait for a federal disaster declaration, which can take weeks.

The Senate recently approved H.R. 517, the Filing Relief for Natural Disasters Act, after it passed in the House in April. The bill now awaits President Donald Trump’s signature.

Currently, the IRS must wait for a federal disaster declaration before it can postpone federal tax deadlines, such as filing tax returns, paying taxes, making retirement contributions, and other tax-related actions. This new law allows the IRS to grant tax deadline extensions sooner, based on a state-declared disaster, when requested by the governor or authorities in areas like the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. The law applies to declarations made after it is enacted.

The law also extends the automatic extension period from 60 to 120 days for certain relief workers, individuals impacted by federally declared disasters, and taxpayers whose homes, businesses, or tax records are in these disaster areas.

A “qualified state-declared disaster” includes events like natural catastrophes, fires, floods, or explosions that cause significant damage and justify postponing federal tax deadlines.