The AICPA actively works on addressing myriad issues that taxpayers are burdened with as a consequence of disaster-related events, including:
food and shelter during and after the disaster,
home and business repairs and remediation,
reopening business and employment,
dealing with federal and state agencies and insurance companies, and
adequate tax relief for disaster related losses.
Special tax-law provisions might help victims recover financially after a disaster. This especially applies for presidentially declared disaster areas.
The AICPA has long proposed permanent disaster relief that would be automatic when Federal Emergency Management Agency (FEMA) or a state governor declares a location to be a federal or state declared disaster area.
The current system does not provide uniform, permanent, and immediate tax relief to those affected by disasters. The AICPA developed 14 recommendations to improve the patchwork situation that currently exists and also to make tax compliance easier during this difficult time. These proposals could help homeowners and business owners alike with the expensive and often long process of recovery.
Below is a timeline of AICPA disaster tax relief advocacy milestones:
Ongoing — State tax filing guidance for natural disasters (Council on State Taxation (COST) updates with AICPA input)
July 15, 2025 - AICPA Supports H.R. 3975, Tax Fairness for Disaster Victims Act The AICPA sent a letter to Representative Timothy Kennedy (D – New York) to express support for his introduction of H.R. 3975, the Tax Fairness for Disaster Victims Act. The legislation would allow individuals impacted by federally declared disasters to elect the prior year’s earned income for purposes of the Earned Income Tax Credit (EITC).
May 14, 2025 - AICPA Comment Letter on Tax Relief for Victims of Crimes, Scams, and Disasters Act The AICPA submitted a letter in support of the Tax Relief for Victims of Crimes, Scams, and Disasters Act (H.R. 3469/S. 1773), which would repeal the suspension of personal casualty loss deductions not attributable to a federally declared disaster.
April 1, 2025 — AICPA Applauds Passage of Bipartisan Bills to Improve Tax Administration and Offer Relief to Taxpayers, Practitioners
The AICPA applauded the unanimous passage in the House of 4 bills that AICPA recently submitted a support letter on H.R. 1152, the Electronic Filing and Payment Fairness Act, H.R. 998, the Internal Revenue Service Math and Taxpayer Help Act, H.R. 517, the Filing Relief for Natural Disasters Act (FRNDA), and H.R. 1491, the Disaster Related Extension of Deadlines Act (DREDA).March 31, 2025 — In Support of H.R. 1152, the Electronic Filing and Payment Fairness Act, H.R. 998, the Internal Revenue Service Math and Taxpayer Help Act, H.R. 517, the Filing Relief for Natural Disasters Act, and H.R. 1491, the Disaster Related Extension of Deadlines Act
The AICPA supports FRNDA, sponsored by Rep. David Kustoff (TN-8) and Rep. Judy Chu (CA-28). To hasten the issuance of federal tax relief, the FRNDA would provide the IRS with authority to grant tax relief once the governor of a state declares either a disaster or state of emergency. The FRNDA would also expand the mandatory federal filing extension under Sec. 7508(d) from 60 days to 120 days, providing taxpayers with additional time to file tax returns following a disaster. Increasing such period to a mandatory 120-day period would provide taxpayers and tax practitioners much needed relief, even before a disaster strikes. The AICPA also supports H.R. 1491 (DREDA), sponsored by Rep. Gregory Murphy (NC-3) and Rep. Jimmy Panetta (CA-19). The DREDA would extend the amount of time disaster victims would have to file for a tax refund or credit. The DREDA would extend the time for filing a claim for credit or refund (i.e., the lookback period) by the amount of time afforded pursuant to a disaster relief postponement period for taxpayers affected by major disasters. Ultimately, the legislative solution under the DREDA granting an automatic extension to the refund or credit lookback period would place taxpayers affected by major disasters on equal footing as taxpayers not impacted by major disasters and would afford greater clarity and certainty to taxpayers and tax practitioners regarding this lookback period.March 6, 2025 — 2025 AICPA Tax Legislation Priorities and 2025 Tax Legislative Compendium
AICPA submitted to Congress its 2025 AICPA tax legislation priorities (which includes - provide permanent and consistent tax relief to individuals and businesses affected by natural disasters (AICPA comments), such as the Filing Relief for Natural Disasters Act (H.R. 517 / S. 132)) and a list of AICPA-endorsed tax bills introduced in the 118th Congress, our guiding principles of good tax policy and our 2025 Tax Legislative Compendium, which contains 69 proposals that are non-controversial simplification and technical changes to provisions in the IRC that need attention and recommendations that perhaps can be readily addressed, including a proposal to provide permanent and uniform provisions to aid taxpayers in disaster relief situations.Feb. 25, 2025 — AICPA Letter of Support for H.R. 517 and H.R. 1491
The AICPA endorses and supports H.R. 517 (FRNDA) and H.R. 1491 (DREDA). The AICPA supports and appreciates the effectiveness, efficiency, and clarity that the FRNDA and the DREDA would afford to taxpayers and tax practitioners following the hardships and distress ushered in by natural disasters.Feb. 18, 2025 — AICPA Recommends Modification to Draft Publication 547, Casualties, Disasters, and Thefts
The AICPA recommended modifying Draft Publication 547, Casualties, Disasters, and Thefts, to clarify the qualified disaster loss requirements under the Federal Disaster Tax Relief Act of 2023 (FDTRA). Specifically, any mention of the FDTRA should provide all qualified disaster loss requirements to avoid confusion regarding the deadlines for federally declared disasters and incident periods.Jan. 30, 2025 — AICPA Recommends Improvement to Tax Forms for Taxpayers Affected by Disaster
The AICPA requested that the IRS consider include a checkbox and space for a FEMA declaration number to allow taxpayers affected by federally declared disasters to self-identify as eligible for disaster relief. A checkbox and FEMA declaration number space would supplement the current process of self-identifying via IRS’s telephone services and would serve as a backup to the IRS’s current automated process of identifying taxpayers eligible for disaster relief.Jan. 30, 2025 — AICPA Expresses Strong Support for Bipartisan Discussion Draft to Improve IRS Administration
AICPA applauded the release of the bipartisan Crapo-Wyden Taxpayer Assistance and Service (TAS) Act discussion draft, containing 13 tax administration provisions that AICPA supported and endorsed, and a total of 65 provisions to meaningfully reduce the burdens on taxpayers and their preparers. Included in the discussion draft is Sec. 112. Postponement of Certain Deadlines by Reason of Disasters Made Applicable to Limitation on Credit or Refund, which provides that when the IRS postpones (or disregards) a filing deadline, the three-year lookback period for receiving a refund or credit is also extended. In addition, when the IRS postpones (or disregards) a payment deadline, the deadline for demanding payment is extended. These provisions are effective for claims filed and notices issued after the date of enactment.Jan. 21, 2025 — AICPA Offers Strong Support for Bipartisan, Bicameral Legislation Postponing Federal Tax Deadlines for State-Declared Disasters
AICPA supports 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.Jan. 8, 2025 — AICPA state disaster tax relief guide and position paper
AICPA has developed a position paper on state disaster tax relief and map that outlines the 9 states (AK, FL, IN, MA, NC, ND, NJ, UT, WI) that currently have state statutes or binding regulations that automatically follow federal disaster relief and suggests more states do so. AICPA suggests state CPA societies in the other states consider advocating with their state tax authorities to allow at least one month after the federal extended disaster tax relief due date before requiring the state tax return to be filed and payments required, and the extra month for state purposes should be automatic if there is a valid disaster tax relief extension for federal purposes.ᵛ This rule should also be applied in the case of special extensions given by the IRS for taxpayers (resident and nonresidents), records, or practitioners in disaster areas. It should apply for all types of returns, including income tax, estate tax, gift tax, excise tax, and information returns. As AICPA’s position paper on one additional month state filing after federal provides, an additional month after the federal due date is often needed to accurately file the state return to make adjustments to calculate taxable income and correctly apportion taxable income to a state.Nov. 13, 2024 — AICPA Comment Letter Urges Congress to Enact Federal Disaster Tax Relief
In this comment letter, the AICPA urged Congress to enact disaster tax relief legislation soon in order to provide timely support to taxpayers that have been impacted over the past many years and without delaying relief into the next tax year. The AICPA has supported numerous legislative efforts to provide taxpayers with permanent and consistent tax relief to individuals and businesses affected by natural disasters. Taxpayers have not been afforded such relief since the Taxpayer Certainty and Disaster Tax Relief Act of 2020, despite millions of taxpayers having been impacted by natural disasters since then.Oct. 22, 2024 — AICPA Recommends Staggered Postponements for Taxpayers Affected by Disasters
As millions of Americans continue to endure natural disasters, the number and severity of which continues to rise, the AICPA submitted a letter to the IRS requesting additional administrative tax filing relief related to the timing of filing or payment deadline postponements that the IRS grants individuals and passthrough entities (“passthroughs”) under section 7508A.Oct. 3, 2024 — The AICPA urges FinCEN to extend automatic disaster filing relief to FBAR and BOI reporting
The AICPA submitted a letter to the Financial Crimes Enforcement Network (FinCEN) urging them to implement a policy to offer automatic filing extensions for reporting of Foreign Bank and Financial Accounts (FBAR) and beneficial ownership information (BOI) reports to victims of major disasters.Oct. 1, 2024 — AICPA Request for Immediate Disaster Tax Relief Due to Hurricane Helene
Due to the devastation associated with Hurricane Helene, the AICPA urged the IRS to immediately provide filing and payment tax disaster relief to those impacted by the hurricane.June 30, 2024 — The AICPA has expressed strong support (see the AICPA one pager) for the bipartisan H.R. 3574 Filing Relief for Natural Disasters Act introduced by Representatives Judy Chu (D-CA) and John Katko (R-NY). This bill would extend the IRS’s authority to grant tax filing relief following state-declared disasters and states of emergency. The legislation also expands the mandatory federal filing extension from 60 days to 120 days, which provides taxpayers with additional time to file their taxes following a disaster.
April 16, 2024 — AICPA Letter to Congress Supporting H.R. 8007, the Disaster Tax Lookback Parity Act of 2024
The AICPA submitted a letter to Congress in support of H.R. 8007, the Disaster Tax Lookback Parity Act of 2024.Jan. 30, 2024 — AICPA Comments on FBAR Extensions for Taxpayers Affected by Major Disasters
AICPA provided feedback and recommendations to the IRS and FinCEN on FBAR filing extensions for taxpayers affected by major disasters.Oct. 27, 2023 — 14 Updated Disaster Relief Tax Legislative Proposals
AICPA submitted to Congress an updated list of 14 disaster tax relief related proposals, many of which were included in our 2023 AICPA Compendium of Tax Legislative Proposals – Simplification and Technical Proposals. These updated disaster tax relief proposals are suggested changes to provide permanent and uniform provisions to aid taxpayers in disaster relief situations.Oct. 27, 2023 — AICPA Letter to Congress Supporting H.R. 5343 / S. 2721 Federal Disaster Responsibility Act
AICPA submitted to Congress a letter in support of H.R. 5343 / S. 2721, the Federal Disaster Responsibility Act, which would apply the “special rules” (i.e., casualty loss deduction in addition to standard deduction, and waiver of 10% of AGI limitation) to qualified disasters occurring after December 27, 2020, and on or before December 31, 2023.Aug. 29, 2023 — AICPA Provides Recommendations for Updated Guidance and Clarifications on Disaster Tax Relief
The AICPA provides comments and recommendations for updated guidance and clarifications from the IRS in several areas relating to disaster tax relief.June 12, 2023 — AICPA Supports the Casualty Loss Deduction Restoration Act
AICPA submitted a letter of support for the Casualty Loss Deduction Restoration Act, which would repeal the suspension imposed by the Tax Cut and Jobs Act for tax years 2018-2025 of personal casualty loss deductions not attributable to a Federally declared disaster, subject to a maximum deduction of $50,000 per year for tax years 2018-2025. In addition, the proposed legislation would extend the period of limitation on filing a claim for credit or refund of tax as a result of a deductible personal casualty loss for tax years 2018-2025. AICPA also suggested several improvements to the legislation in addition to noting our 11 recommendations for disaster tax relief as well.June 9, 2023 — AICPA Supports Legislation to Provide Filing Relief for Natural Disasters
The AICPA supports S. 1815 and H.R. 3861, legislation which would extend the IRS’s authority to grant tax relief following state-declared disaster emergencies. It would also expand the mandatory federal filing extension from 60 days to 120 days, which provides taxpayers with additional time to file taxes following a disaster.May 9, 2023 — AICPA Comments on 2023-2024 IRS Priority Guidance Plan
AICPA submitted to IRS comments on the 2023-2024 IRS Priority Guidance Plan, listing suggested and needed guidance related to disaster relief on page nine – requesting IRS provide guidance on disaster tax and filing relief, including: broaden the relief provided administratively under section 7508A(a), as was done in Notice 2023-21, and make permanent and automatically provide a postponed date lookback period as part of IRS administrative relief for all federally and state declared disasters going forward.March 17, 2023 — AICPA Comments Requesting Lookback Period for Refunds and Credits to Apply to All Disasters Going Forward
AICPA submitted comments to Treasury and IRS requesting that the IRS apply the relief given in Notice 2023-21 regarding the lookback period for allowing tax credits or refunds to all Federally declared disasters.Feb. 7, 2023 — 2023 AICPA Compendium of Tax Legislative Proposals – Simplification and Technical Proposals
As part the AICPA tax legislative compendium to Congress, AICPA suggested 11 recommendations for permanent and uniform provisions to aid taxpayers in disaster relief situations.June 2, 2022 – The AICPA submitted “Bipartisan Retirement Bill Language to Permanently Remove Financial Penalties for Individuals Impacted by Natural Disasters.” The provision would preclude immediate taxation on victims of a disaster event who withdraw up to $22,000 from a qualified plan or individual retirement account and repay the amount within three years.
Nov. 8, 2021 — The AICPA submitted comments on S. 3173, the Claiming Losses After Disasters Act. Specifically, we support the goal encapsulated in this bill, to permanently provide disaster victims affected by a major federally declared disaster additional tax relief for damages and losses not reimbursed by insurance.
Oct. 20, 2021 — The AICPA supports S. 2583, the Disaster Retirement Savings Act, and the efforts to permanently remove financial penalties for individuals impacted by natural disasters who choose to use retirement funds to cover unexpected expenses associated with those disasters.
Sept. 15, 2021 —The AICPA expressed strong support for S. 2748, the Filing Relief for Natural Disasters Act, that would extend the IRS’s authority to grant tax relief following state-declared disasters and states of emergency. The bill would also expand the mandatory federal filing extension from 60 days to 120 days, which provides taxpayers with additional time to file taxes following a disaster.
June 2, 2021 — The AICPA has expressed strong support or the bipartisan "Filing Relief for Natural Disasters Act" introduced by Representatives Judy Chu (D-CA) and John Katko (R-NY). This bill would extend the Internal Revenue Service’s (IRS) authority to grant tax filing relief following state-declared disasters and states of emergency. The legislation also expands the mandatory federal filing extension from 60 days to 120 days, which provides taxpayers with additional time to file their taxes following a disaster.
July 17, 2017 — AICPA most recent submission of our disaster relief provisions in response to Chairman Hatch’s (Senate Finance Committee) request for tax reform comments. We submitted all 10 of our disaster recommendations in item #5 of our individual tax reform letter.
2015 — AICPA Brochure on “Tax Relief for Natural Disaster Victims.” This was used on the Hill to distribute our 10 permanent provisions to various state representatives’ offices. September 24, 2015 – AICPA letters of support (AICPA letter to Reed) (AICPA letter to Vitter) for Title III ( permanent provisions ONLY) of the National Disaster Tax Relief Act of 2015 (H.R. 3110 & S. 1795).
July 16, 2015 — Rep. Tom Reed introduced the National Tax Relief Disaster Act that incorporates many of the AICPA's proposals.
Nov. 18, 2014 — AICPA Tax Executive Committee Chair Troy Lewis testified before a Senate small business panel, explaining the impact that the current system is having on taxpayers and their advisers.
Nov. 22, 2013 — The AICPA provided recommendations for permanent disaster tax relief to the House and Senate tax-writing committees.
The AICPA’s Disaster Tax Relief Task Force is actively monitoring and considering other tax advocacy comments related to disaster tax relief, including letters to IRS, Treasury and Congress regarding needed guidance and legislation. It also is assisting state CPA societies impacted by disasters with tax filing relief resources. For additional guidance and tools, visit the AICPA Disaster Relief Resource Center including the latest developments, procedures and processes and casualty loss FAQs.