Filing Relief for Natural Disasters Enacted

President Trump has signed into law the Filing Relief for Natural Disasters Act (“Act”). The Act allows the Treasury Department, after consulting with the Federal Emergency Management Agency, to postpone filing deadlines for affected individuals and businesses in a state-declared disaster area that has not yet received a federal disaster designation. In some instances, it could take weeks or months for a federal major disaster declaration to be issued.

The Act also increases the current automatic extension following a federally declared disaster declaration from 60 days to 120 days. This generally applies to the following tax-related acts for individuals who reside in or have a principal place of business in the disaster area:

•    making IRA or employer plan contributions,
•    removing excess IRA contributions,
•    recharacterizing IRA contributions, 
•    filing Form 5500,
•    making loan payments, and
•    completing rollover contributions. 

This new relief applies to declarations made after the date of enactment.