Senators Introduce Disaster Tax Relief Bill
In the wake of Tropical Depression Nicholas and Hurricane Ida, bipartisan legislation has been introduced in the U.S. Senate to allow the IRS to postpone tax filing deadlines when a state-level disaster declaration is issued.
Currently, the IRS has the authority to delay tax filing deadlines only in the event of a presidentially declared federal disaster. The Filing Relief for Natural Disasters Act, introduced by Sen. Catherine Cortez Masto, D-Nev., Sen. John Kennedy, R-La., and Sen. Chris Van Hollen, D-Md., would extend the IRS’ authority to grant filing relief following state-declared disasters and states of emergency. In addition, the bill would expand the mandatory federal filing extension from 60 days to 120 days.
The American Institute of CPAs (AICPA) has expressed its support for the legislation. “The AICPA has been a vocal advocate for expanded disaster tax filing relief for many years, and we are grateful to Sen. Cortez Masto for her leadership on this issue,” AICPA Vice President of Taxation Edward Karl said in a statement. “It’s often difficult for the IRS to act quickly to offer tax relief in the wake of a natural disaster. Sen. Cortez Masto recognizes that victims of natural disasters shouldn’t have to worry about tax filing deadlines during an already stressful time and is committed to providing expedited tax filing relief to those taxpayers.”
TSCPA will continue to provide updates to this story.