Americans want more from IRS after natural disasters: AICPA

One in three Americans want more tax relief from the Internal Revenue Service after disasters, and one in four wish the agency would streamline extension requests, among other moves, according to a recent survey for the AICPA.

Americans were asked which type of tax filing and payment relief would be helpful after experiencing a natural disaster:

• 35% want the IRS to further extend the tax relief (i.e., extensions on filing taxes and payment) beyond what was initially provided when the state of emergency was declared.
• 29% want the IRS to improve the process for requesting an extension when property is “involuntarily converted” (i.e., lost to circumstances beyond the taxpayer’s control, such as fire, theft or disaster).
• 21% wish the IRS would stagger individual and business deadlines for tax relief (i.e., separate extended deadlines for filing personal and business taxes and payment) after a disaster.

The AICPA also asked Americans who had been affected by a natural disaster how long it took to receive tax relief from the federal government. Among the 43% who say they had been a victim of a natural disaster:

• 11% say they received tax relief from the federal government less than a month after being impacted by a natural disaster.
• 25% say it took a month to less than six months to receive tax relief from the federal government.
• 28% say it took six months to less than a year.
• 14% say relief took a year or more.
• 22% received no tax relief from the federal government after being impacted by a natural disaster.

“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,” said Melanie Lauridsen, vice president of AICPA tax policy & advocacy, in a statement.
The survey also revealed that more than two in five Americans (42%) noted that if they experienced a natural disaster, it would help if the IRS offered tax relief (i.e., extension on filing taxes and payment) once a governor declares a state of emergency instead of waiting for the federal government to declare a state of emergency. A bipartisan bill providing this relief has unanimously passed Congress and awaits signature by President Trump.

This relief survey was conducted online within the U.S. by The Harris Poll for the AICPA, questioning 2,093 adults. It comes on the heels of another for the AICPA that found that nearly a third of Americans have taken no financial steps to prepare for a natural disaster.