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Tax Relief Preferences Highlighted in AICPA Survey

The American Institute of CPAs (AICPA), through a recent survey conducted by The Harris Poll, sought to gauge the preferences of Americans regarding tax relief from the IRS after experiencing a natural disaster. This survey shines a light on the urgent need for improved support for individuals facing the aftermath of such calamitous events.

Key Findings of the Survey

The AICPA survey uncovered some significant insights regarding tax relief needs:

• - Extension Requests: A notable 35% of respondents expressed the desire for the IRS to extend the tax relief measures beyond the initial provisions established when a state of emergency is declared. This emphasizes the necessity for more flexibility given the lingering effects of a disaster on victims.
• - Improved Procedures for Extensions: Nearly 29% indicated that they would appreciate enhancements in the process for requesting extensions when their property is involuntarily converted, such as through theft, disaster, or similar circumstances.
• - Staggered Deadlines: Additionally, 21% of those surveyed stated that staggered individual and business deadlines for tax relief after a natural disaster would be beneficial.

Timelines for Receiving Tax Relief

When asked about their experiences with receiving tax relief, many American disaster victims reported varying timelines:

• - Swift Relief: About 11% received tax relief in less than a month following the disaster.
• - 4 to 6 Months: 25% received relief after one month but before six months, highlighting a gap that many find stressful during recovery.
• - Longer Wait: Close to 28% had to wait between 6 months to a year, while 14% said it took over a year to secure assistance. Alarmingly, 22% reported receiving no tax relief at all.

Melanie Lauridsen, vice president of AICPA Tax Policy Advocacy, voiced the critical nature of these findings, stating, “Those impacted by disasters are already overcome with stress, anxiety, and emotion over their losses – they should not have the added worry of deadlines and penalties from the federal government on top of their other challenges.”

Recent Legislative Changes

In light of the survey results and the existing need, a new bipartisan law has gained unanimous support in Congress and awaits the President's signature. This law aims to provide immediate tax relief once a state governor declares a state of emergency, ensuring faster assistance for those impacted by disasters. Lauridsen remarked, “This new law is a win for taxpayers nationwide. The timeliness of tax filing and payment relief following a disaster can give taxpayers one less thing to worry about.”

Advice for Taxpayers Affected by Disasters

Although disasters bring considerable challenges, Americans are still required to comply with their tax obligations. Here are essential tips for navigating tax relief:

1. Stay Updated: Following a federally declared disaster, the IRS may allow additional time for filing and payment. Taxpayers should regularly check the IRS's Tax Relief in Disaster Situations page for updates.
2. State Relief Information: It's crucial for individuals to reach out to their state's tax authority for specific relief details, as state regulations may differ significantly from federal policies. The AICPA has also compiled a State Disaster Tax Relief Guide for reference.
3. Casualty Loss Deductions: Individuals sustaining property damage from a federally declared disaster can claim casualty loss deductions. Proper documentation, including photos, videos, and receipts, is essential for a successful deduction claim.
4. Retirement Plan Distributions: In certain cases, victims of disasters may withdraw from retirement accounts without incurring the standard additional penalty.

The role of Certified Public Accountants (CPAs) remains pivotal in aiding disaster recovery, providing crucial financial and tax support. The AICPA personal financial planning team, for example, offers essential planning advice, while their tax policy and advocacy counterparts work tirelessly to support swift relief efforts.

By understanding their options and resources, taxpayers can better navigate these challenging waters and work towards rebuilding their lives post-disaster. For additional insights and planning resources, refer to the AICPA/Harris Poll survey data on disaster financial planning.

Survey Methodology

Conducted between June 13 and June 17, 2025, this survey included responses from 2,093 adults across the United States. The data reliability is within +/- 2.5 percentage points at a 95% confidence level. For a detailed methodology, inquiries can be directed to the AICPA.

Conclusion

As natural disasters become more prevalent, understanding the intricacies of tax relief is vital. The AICPA’s survey underscores the importance of timely and actionable tax assistance to support those affected by unforeseen catastrophes. Policymakers and the IRS must take these findings into account to ensure that tax relief processes are streamlined and responsive to the needs of disaster victims.