Mark Koziel, President and CEO of the AICPA, described the bill as “a major win for taxpayers and tax practitioners” in a recent statement. The organization has been a key supporter of the measure throughout its journey through Congress.
Improving Disaster Response
The legislation specifically targets the process of granting tax filing extensions after disasters occur. Under current procedures, extension approvals can be delayed, creating additional stress for individuals and businesses already dealing with disaster recovery.
The new bill aims to create a more efficient system that would allow the government to grant these extensions more quickly when disasters strike. This streamlined approach could provide immediate clarity for those affected by hurricanes, wildfires, floods, and other catastrophic events.
Benefits for Tax Professionals and Taxpayers
Tax practitioners stand to gain significant operational benefits from the legislation. When disasters occur, accounting professionals often face numerous challenges:
- Difficulty accessing client records damaged or destroyed in disasters
- Power and internet outages affecting their ability to file returns
- Staff displacement and office closures
- Clients facing financial hardships and immediate recovery needs
For individual and business taxpayers, the bill promises to reduce uncertainty during already stressful situations. Rather than waiting for extension announcements or worrying about potential penalties, affected taxpayers would receive prompt notification about adjusted deadlines.
Legislative Journey
The bill received bipartisan support as it moved through Congress, reflecting widespread recognition of the need to improve disaster response mechanisms within the tax system. After clearing both chambers, it now requires only the President’s signature to become law.
The AICPA’s endorsement carries significant weight in the tax community. As the largest member association representing the accounting profession, with more than 400,000 members, the organization has consistently advocated for tax administration improvements.
“This legislation addresses a real pain point in our disaster response system,” noted a tax policy expert familiar with the bill. “When people are dealing with the aftermath of a disaster, the last thing they need is tax filing uncertainty.”
The timing of the bill is particularly relevant as the United States continues to face various natural disasters, from seasonal hurricanes to increasingly destructive wildfires and flooding events across multiple regions.
Once signed, the new law will establish clearer protocols for the IRS and Treasury Department to follow when issuing tax deadline extensions, potentially reducing the administrative burden on government agencies while providing faster relief to affected communities.
