The American Institute of CPAs (AICPA) expressed strong support of bipartisan legislation introduced in both the House and the Senate which would modify the rules for postponing certain deadlines in the event of a disaster.
The Filing Relief for Natural Disasters Act – H.R. 3861 & S. 1815 – would extend the Internal Revenue Service’s (IRS’) authority to grant tax filing relief following state-declared disasters and states of emergency under Section 7508A(a); and expand the mandatory federal filing extension from 60 days to 120 days, which provides taxpayers with additional time to file their taxes following a disaster.
The bills were introduced in the House by Representatives David Kustoff (R-TN) and Judy Chu (D-CA), and in the Senate by Senators Catherine Cortez Masto (D-NV), Chris Van Hollen (D-MD), Marsha Blackburn (R-TN), and John Kennedy (R-LA).
The process for receiving tax filing relief from the IRS during a natural disaster can be overwhelming. The current system can cause added stress and confusion to impacted businesses and individual taxpayers as they work to rebuild following a natural disaster. The Filing Relief for Natural Disasters Act would allow the IRS specific authority to quickly postpone certain deadlines in response to state-declared disasters.
Eileen Sherr, Director, AICPA Tax Policy and Advocacy, says victims of natural disasters should not have to worry about tax filing deadlines during an already stressful time. “AICPA is committed to advocating for expedited tax filing relief for taxpayers and we are grateful to the members of Congress who have chosen to lead on this important issue. We urge other members of Congress to support this legislation and provide some peace of mind to those impacted by natural disasters.”