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Last Updated: January 8, 2012

-STATUTE

(a) In general
      In the case of a taxpayer determined by the Secretary to be
    affected by a federally declared disaster (as defined by section
    165(h)(3)(C)(i)) or a terroristic or military action (as defined in
    section 692(c)(2)), the Secretary may specify a period of up to 1
    year that may be disregarded in determining, under the internal
    revenue laws, in respect of any tax liability of such taxpayer - 
        (1) whether any of the acts described in paragraph (1) of
      section 7508(a) were performed within the time prescribed
      therefor (determined without regard to extension under any other
      provision of this subtitle for periods after the date (determined
      by the Secretary) of such disaster or action),
        (2) the amount of any interest, penalty, additional amount, or
      addition to the tax for periods after such date, and
        (3) the amount of any credit or refund.
    (b) Special rules regarding pensions, etc.
      In the case of a pension or other employee benefit plan, or any
    sponsor, administrator, participant, beneficiary, or other person
    with respect to such plan, affected by a disaster or action
    described in subsection (a), the Secretary may specify a period of
    up to 1 year which may be disregarded in determining the date by
    which any action is required or permitted to be completed under
    this title. No plan shall be treated as failing to be operated in
    accordance with the terms of the plan solely as the result of
    disregarding any period by reason of the preceding sentence.
    (c) Special rules for overpayments
      The rules of section 7508(b) shall apply for purposes of this
    section.

-SOURCE

(Added Pub. L. 105-34, title IX, Sec. 911(a), Aug. 5, 1997, 111
    Stat. 877; amended Pub. L. 107-16, title VIII, Sec. 802(a), June 7,
    2001, 115 Stat. 149; Pub. L. 107-134, title I, Sec. 112(a), Jan.
    23, 2002, 115 Stat. 2433; Pub. L. 110-343, div. C, title VII, Sec.
    706(a)(2)(D)(vii), Oct. 3, 2008, 122 Stat. 3922.)

-MISC1

AMENDMENTS                            
      2008 - Subsec. (a). Pub. L. 110-343 substituted "federally
    declared disaster (as defined by section 165(h)(3)(C)(i))" for
    "Presidentially declared disaster (as defined in section
    1033(h)(3))" in introductory provisions.
      2002 - Pub. L. 107-134 amended section catchline and text
    generally, substituting present provisions for provisions which
    had: in subsec. (a), authorized Secretary to postpone certain tax-
    related deadlines by reason of presidentially declared disaster,
    and in subsec. (b), provided that subsec. (a) would not apply for
    the purpose of determining interest on any overpayment or
    underpayment.
      2001 - Subsec. (a). Pub. L. 107-16, Secs. 802(a), 901,
    temporarily substituted "120 days" for "90 days" in introductory
    provisions. See Effective and Termination Dates of 2001 Amendment
    note below.

                     EFFECTIVE DATE OF 2008 AMENDMENT                 
      Amendment by Pub. L. 110-343 applicable to disasters declared in
    taxable years beginning after Dec. 31, 2007, see section 706(d)(1)
    of Pub. L. 110-343, set out as a note under section 56 of this
    title.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-134 applicable to disasters and
    terroristic or military actions occurring on or after Sept. 11,
    2001, with respect to any action of the Secretary of the Treasury,
    the Secretary of Labor, or the Pension Benefit Guaranty Corporation
    occurring on or after Jan. 23, 2002, see section 112(f) of Pub. L.
    107-134, set out as a note under section 6081 of this title.

             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT         
      Pub. L. 107-16, title VIII, Sec. 802(b), June 7, 2001, 115 Stat.
    149, provided that: "The amendment made by this section [amending
    this section] shall take effect on the date of enactment of this
    Act [June 7, 2001]."
      Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
    limitation years beginning after Dec. 31, 2012, and the Internal
    Revenue Code of 1986 to be applied and administered to such years
    as if such amendment had never been enacted, see section 901 of
    Pub. L. 107-16, set out as a note under section 1 of this title.

                              EFFECTIVE DATE                          
      Section 911(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [enacting this section] shall apply with
    respect to any period for performing an act that has not expired
    before the date of the enactment of this Act [Aug. 5, 1997]."

     AUTHORITY TO POSTPONE CERTAIN TAX-RELATED DEADLINES BY REASON OF
                               Y2K FAILURES
      Pub. L. 106-170, title V, Sec. 522, Dec. 17, 1999, 113 Stat.
    1927, provided that:
      "(a) In General. - In the case of a taxpayer determined by the
    Secretary of the Treasury (or the Secretary's delegate) to be
    affected by a Y2K failure, the Secretary may disregard a period of
    up to 90 days in determining, under the internal revenue laws, in
    respect of any tax liability (including any interest, penalty,
    additional amount, or addition to the tax) of such taxpayer - 
        "(1) whether any of the acts described in paragraph (1) of
      section 7508(a) of the Internal Revenue Code of 1986 (without
      regard to the exceptions in parentheses in subparagraphs (A) and
      (B)) were performed within the time prescribed therefor; and
        "(2) the amount of any credit or refund.
      "(b) Applicability of Certain Rules. - For purposes of this
    section, rules similar to the rules of subsections (b) and (e) of
    section 7508 of the Internal Revenue Code of 1986 shall apply."

          ABATEMENT OF INTEREST ON UNDERPAYMENTS BY TAXPAYERS IN
                  PRESIDENTIALLY DECLARED DISASTER AREAS
      Section 915 of Pub. L. 105-34, as amended by Pub. L. 105-277,
    div. J, title IV, Sec. 4003(e)(1), Oct. 21, 1998, 112 Stat. 2681-
    909, provided that:
      "(a) In General. - If the Secretary of the Treasury extends for
    any period the time for filing income tax returns under section
    6081 of the Internal Revenue Code of 1986 and the time for paying
    income tax with respect to such returns under section 6161 of such
    Code (and waives any penalties relating to the failure to so file
    or so pay) for any individual located in a Presidentially declared
    disaster area, the Secretary shall, notwithstanding section
    7508A(b) of such Code, abate for such period the assessment of any
    interest prescribed under section 6601 of such Code on such income
    tax.
      "(b) Presidentially Declared Disaster Area. - For purposes of
    subsection (a), the term 'Presidentially declared disaster area'
    means, with respect to any individual, any area which the President
    has determined during 1997 or 1998 warrants assistance by the
    Federal Government under the Robert T. Stafford Disaster Relief and
    Emergency Assistance Act [42 U.S.C. 5121 et seq.].
      "(c) Individual. - For purposes of this section, the term
    'individual' shall not include any estate or trust.
      "(d) Effective Date. - This section shall apply to disasters
    declared after December 31, 1996."