Blockchain and Virtual Currency Implications for Tax
News

AICPA Backs Legislation Giving More Relief to Natural Disaster Victims

Apr 19, 2024 · 2 min read

AICPA Endorses Bipartisan Legislation to Provide Additional Tax Relief to Victims of Natural Disasters

Washington, D.C. (April 18, 2024) – The American Institute of CPAs (AICPA) expressed its strong support of H.R. 8007, the Disaster Tax Lookback Parity Act of 2024, in a letter to Representatives George Murphy (R-NC) and Jimmy Panetta (D-CA), who are original sponsors of the bill. Taxpayers impacted by disasters typically do not have the benefit of the lookback period for claiming credits and refunds being aligned with a postponed return filing due date, which this legislation would provide for all federally declared disasters.

The legislation provides relief similar to recommendations previously submitted to Congress by the AICPA, as well as recommendations outlined in the National Taxpayer Advocate’s recent Annual Report to Congress requesting a modification of the lookback period for allowing tax credits or refunds.

When taxpayers are affected by a major disaster such as a wildfire, flood, earthquake, or hurricane, the Internal Revenue Service (IRS) often provides relief in the form of extended filing and payment deadlines. However, this relief typically does not extend the cutoff for refund or credit claims, which is still based on the original filing deadline. As a result, under current law, taxpayers affected by a major disaster often have less time to make a refund or credit claim than those who are not affected.

“The IRS typically recognizes several major disasters each year where large numbers of taxpayers often live,” said Peter Mills, Senior Manager for Tax Policy and Advocacy with the AICPA. “This legislation would provide widespread relief for many taxpayers. It would also be of immense help to tax professionals who assist taxpayers in major disaster areas by allowing them more time to file refunds or credit claims on behalf of their clients. This is significant for taxpayers who are dealing with disasters and we are grateful to Representatives Murphy and Panetta for their leadership on this issue,” he continued.

About the American Institute of CPAs

The American Institute of CPAs® (AICPA®) is the world’s largest member association representing the CPA profession, with more than 415,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.


BACKGROUND:

  • March 17, 2023 – AICPA comment letter requesting broader relief and an automatic postponement date lookback period for allowing tax credits or refunds for all disasters

What did you think of this?

Every bit of feedback you provide will help us improve your experience

What did you think of this?

Every bit of feedback you provide will help us improve your experience

Mentioned in this article

Topics

Tax
Manage preferences

Related content

}