The American Institute of CPAs (AICPA) has expressed strong support for new bipartisan legislation that would empower the Internal Revenue Service (IRS) to extend federal tax deadlines following state-declared disasters.
This proposed change aims to provide timely relief to taxpayers affected by such emergencies.
Currently, the IRS must await a federal disaster declaration before granting deadline extensions, which can result in significant delays for those impacted.
The legislation, introduced in both the House and Senate, seeks to amend the Internal Revenue Code (IRC) to allow the IRS to act promptly based on state declarations.
The bill has been introduced by Representatives David Kustoff and Judy Chu in the House, and Senators Catherine Cortez Masto, John Kennedy, Chris Van Hollen, and Marsha Blackburn in the Senate.
It aims to offer immediate support to taxpayers during challenging times without having to wait for federal disaster declarations.
The AICPA has long advocated for permanent disaster tax relief legislation to ensure fair and timely treatment for taxpayers.
AICPA Tax Policy and Advocacy vice-president Melanie Lauridsen said: “There are many types of disasters that impact taxpayers across the country and throughout the year.
“Waiting for the IRS to issue relief causes taxpayers and tax practitioners unnecessary stress and burden when their homes, offices and records may have been destroyed or are inaccessible.
“We are grateful to Representatives Kustoff and Chu and Senators Cortez Masto, Kennedy, Van Hollen and Blackburn for their leadership on this important issue, and we urge Congress to approve this legislation so that the IRS is allowed to offer disaster victims the certainty they need quickly.”
