[Congressional Record Volume 144, Number 45 (Wednesday, April 22, 1998)]
[Extensions of Remarks]
[Page E616]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


           INTRODUCING THE DISASTER VICTIMS TAX FAIRNESS ACT

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                             HON. BOB RILEY

                               of alabama

                    in the house of representatives

                       Wednesday, April 22, 1998

  Mr. RILEY. Mr. Speaker, the devastating storms that swept through 
Alabama and Georgia on April 8, 1998, left hundreds, if not thousands, 
of people's lives in shambles. Many of these families have lost every 
thing they own--their homes, their clothes, their life's work. Some 
have lost much more.
  Unfortunately, they are not the only people who have been hit by 
severe weather. Already this year, the President has declared 21 
natural disasters affecting over 350 counties nationwide. In a time of 
tragedy when people are trying to pick up the pieces of their lives and 
rebuild, the last thing they should be faced with is filing their 
federal income tax returns.
  Fortunately, Mr. Speaker, Treasury Secretary Rubin has directed the 
IRS to extend the deadline to file federal tax returns for victims of 
the weather related disasters in 1998. This means that the IRS will not 
assess effected taxpayers in these areas late-filing or later-payment 
penalties unless they file after the new deadline. However, by law, the 
IRS must charge these taxpayers interest--at the current rate of 8 
percent a year--on any unpaid taxes from the original due date (April 
15, 1998) until the tax is paid.
  In my view, charging disaster victims interest on their unpaid taxes 
after the IRS granted them an extension is unfair and irresponsible. It 
constitutes an undue hardship that should be remedied as quickly as 
possible. The Secretary has done the right thing by extending the 
filing deadline. Now, Congress must step up to the plate and do its 
part. For this reason, I am introducing legislation which will allow 
Secretary Rubin to waive any interest charged to victims of a 
presidentially declared natural disaster.
  The Disaster Victims Tax Fairness Act will amend Section 915 of the 
Taxpayer Relief Act of 1997 (P.L. 105-34) to include federal disasters 
that occurred in 1998. It will apply only to residents of a 
presidentially declared federal disaster area and interest abatement 
will be offered solely to taxpayers who were granted a disaster related 
filing extension.
  Mr. Speaker, in light of the tremendous emotional, physical, and 
financial strain placed on the victims of natural disasters, I do not 
believe that the federal government should add to these people's 
hardship by charging interest on taxes not paid by the April 15, 
deadline. I urge you to bring this legislation to the floor as quickly 
as possible so Congress can do its part in helping the victims of these 
natural disasters.

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