S. 5039

116TH CONGRESS
2D SESSION

S.5039

To amend the Internal Revenue Code of 1986 to modify
the automatic extension of certain deadlines in the case of taxpayers
affected by federally declared disasters, and for other purposes.

IN THE SENATE OF THE UNITED STATES

DECEMBER 16, 2020

Mr. PORTMAN introduced the following bill; which was read
twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to modify the automatic extension of certain deadlines in the case of taxpayers affected by federally declared disasters, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. MODIFICATION OF AUTOMATIC EXTENSION OF CERTAIN DEADLINES IN THE CASE OF TAXPAYERS AFFECTED BY FEDERALLY DECLARED DISASTERS.

(a) IN GENERAL. — Section 7508A(d)(1) of the Internal Revenue Code of 1986 is amended —

(1) by striking "the latest incident period so specified" in subparagraph (B) and inserting "the later of such earliest incident date described in subparagraph (A) or the date such declaration was issued", and

(2) by striking "in the same manner as a period specified under subsection (a)" and inserting "in determining, under the internal revenue laws, in respect of any tax liability of such qualified taxpayer, the acts and amounts described in subsection (a)".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to federally declared disasters declared after December 31, 2019.

SEC. 2. MODIFICATIONS OF RULES FOR POSTPONING CERTAIN ACTS BY REASON OF SERVICE IN COMBAT ZONE OR CONTINGENCY OPERATION.

(a) IN GENERAL. — Section 7508(a)(1) of the Internal Revenue Code of 1986 is amended —

(1) by striking subparagraph (C) and inserting the following:

"(C) Filing a petition with the Tax Court, or filing a notice of appeal from a decision of the Tax Court;", and

(2) by inserting "or in respect of any erroneous refund" after "any tax" in subparagraph (J).

(b) EFFECTIVE DATE. — The amendments made by this section shall apply to any period for performing an act which has not expired before the date of the enactment of this Act.

SEC. 3. TOLLING OF TIME FOR FILING A PETITION WITH THE TAX COURT.

(a) IN GENERAL. — Section 7451 of the Internal Revenue Code of 1986 is amended —

(1) by striking "The Tax Court" and inserting the following:

"(a) FEES. — The Tax Court", and

(2) by adding at the end the following new subsection:

"(b) TOLLING OF TIME IN CERTAIN CASES. — Notwithstanding any other provision of this title, in any case in which the location for filing a petition or the office of the clerk of the Tax Court is inaccessible (including by reason of a lapse in appropriations), the relevant time period for filing such petition shall be tolled —

"(1) in any case in which the period of inaccessibility was not more than 5 days, for the number of days within such period, and

"(2) in any case in which the period of inaccessibility was 5 days or more, for the number of days within such period plus an additional 14 days.".

(b) CONFORMING AMENDMENTS. —

(1) The heading for section 7451 of the Internal Revenue Code of 1986 is amended by striking "FEE FOR FILING PETITION" and inserting "PETITIONS".

(2) The item in the table of contents for part II of subchapter C of chapter 76 of such Code is amended by striking "Fee for filing petition" and inserting "Petitions".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to petitions required to be timely filed (determined without regard to the amendments made by this section) on or after February 1, 2020.