An Overview of the Filing Relief for Natural Disasters Act

This new law complements disaster-related changes in the OB3 Act

On July 24, 2025, a tax bill quietly became law: the Filing Relief for Natural Disasters Act, also known as Public Law 119-29. In addition, the One Big Beautiful Bill Act (OB3 Act) made disaster-related changes that complement this new law.

State Disasters Eligible for Federal Postponement

Under new §7508A(c), a state may request that the federal government grant a discretionary tax deadline postponement due to a qualified state-level disaster, even if the President did not declare a federal disaster. The Secretary of the Treasury must approve such relief.

A state also includes the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.

A qualified state-level disaster includes any natural catastrophe (including any hurricane, tornado, storm, high water, winddriven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor (or Mayor, for the District of Columbia) causes damage of sufficient severity and magnitude to warrant the postponement.

This provision applies to declarations made after July 24, 2025.

Mandatory Postponement Period Extended

Under §7508A(e), if the President declares a federal disaster, certain tax acts are automatically postponed; this limited automatic postponement can be supplemented if the IRS announces additional discretionary relief.

The acts that receive the automatic postponement are:

• Filing any return of income, estate, gift, employment, or excise tax,

• Payment of any income, estate, gift, employment, or excise tax or any installment thereof or of any other liability to the United States in respect thereof,

• Filing a petition with the Tax Court, or filing a notice of appeal from a decision of the Tax Court,

• Allowance of a credit or refund of any tax,

• Filing a claim for credit or refund of any tax,

• Bringing suit upon any such claim for credit or refund, and

• Certain pension- and retirement-related deadlines.

For declarations made after July 24, 2025, the automatic postponement period begins on the earliest incident date specified in a disaster declaration for a federally declared disaster. It ends on the date 120 days after the latest incident date specified in the disaster declaration. Previously, the automatic period was 60 days.

OB3 Act: Personal Casualty Losses for State Disasters

§70109 of the OB3 Act permanently limited personal casualty loss deductions to only those attributable to a federally declared disaster (except to the extent of personal casualty gains during the tax year).

In addition, if the Secretary of the Treasury agrees, the provision will allow personal casualty losses attributable to state-declared disasters, which are defined similarly to §7508A(c). These changes apply to tax years beginning after December 31, 2025.

OB3 Act: Qualified Disaster Losses

A personal casualty loss attributable to a qualified disaster is only reduced by $500 per incident (instead of the normal 10% of AGI floor and $100 reduction). It can also be added to the standard deduction.

§70438 modified the qualified disaster definition to a major disaster declared by the President between January 1, 2020, and September 2, 2025. It must have an incident period that began on or after December 28, 2019, and on or before July 4, 2025, and must have ended no later than August 3, 2025.

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