AICPA Offers Strong Support for Bipartisan, Bicameral Legislation Postponing Federal Tax Deadlines for State-Declared Disasters
Washington, D.C. (January 21, 2025) – 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.”
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with 400,000 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.
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Contact:
Veronica L. Vera 202-434-9215
Veronica.Vera@aicpa-cima.com