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Taxes | January 21, 2025

AICPA Offers Strong Support for Bipartisan, Bicameral Legislation Postponing Federal Tax Deadlines for State-Declared Disasters

The current statute requires the IRS to wait for a federal disaster declaration, which cannot happen until after the disaster occurs, in order to grant deadline extensions.

Isaac M. O'Bannon

For many years, the American Institute of CPAs (AICPA) has advocated for legislation which would provide authority to the Internal Revenue Service (IRS) to postpone certain deadlines when a state declares a disaster or emergency.

Legislation introduced by Representatives David Kustoff (R-TN) and Judy Chu (D-CA) in the House (H.R.517) and Senators Catherine Cortez Masto (D-NV), John Kennedy (R-LA), Chris Van Hollen (D-MD) and Marsha Blackburn (R-TN) in the Senate would amend the Internal Revenue Code (IRC) to allow state-declared disasters to trigger a postponement of certain filing and payment deadlines, at the discretion of the IRS.

The current statute requires the IRS to wait for a federal disaster declaration, which cannot happen until after the disaster occurs, in order to grant deadline extensions. The process could mean those impacted must wait days or weeks following a disaster before a federal declaration is made. The legislation will provide taxpayers in the affected areas more peace-of-mind during a difficult time.

The bill does not eliminate the need for Congress to implement a permanent disaster tax relief bill, for which the accounting profession has long advocated, so that taxpayers are assured fair treatment in a timely manner.

“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,” said Melanie Lauridsen, Vice President of Tax Policy & Advocacy for the AICPA. “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.”

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Tags: Income Taxes, Taxes

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