Disaster Relief: CalCPA Hill Visit Paves Way for Legislation.

• Author: Fox, Jason
• Position: Capitol Beat

CalCPA member leaders joined their colleagues from across the country in May to participate in the AICPA Council meeting in Washington. D.C. The meeting highlighted trends and national policy issues shaping the future of the OPA profession. In conjunction with the meeting, CalCPA members traveled to Capitol Hill to participate in meetings with members of Congress to discuss policy issues of importance to the CPA profession.

In their discussions, CPAs urged Congress to support modernizing IRS taxpayer services for practitioners, increased focus on the fiscal state of the nation through a review of the nation's consolidated federal financial statements, and presented how the profession can be collaborative partners in developing sound tax policy for an increasingly digital economy.

IRS Disaster Relief

An additional discussion point was urging support for policy that would allow lor timelier issuance of IRS disaster relief. Specifically, CPAs urged Congress to support legislation to grant the IRS the authority to postpone federal tax deadlines when there is a stale-declared disaster. These conversations between CPA leaders and Congress helped lead the way for California Representative Judy Chu jD-CA), along with Representative John Katko (R-N.Y.) and senators David Perdue (R-Ga.) and Catherine Cortez Masto (D-Nev.) to introduce IRS disaster relief legislation.

The two identical bills in Congress, H. R. 2976 and S. 1677. will amend the IRC to provide the IRS with the authority to postpone certain deadlines in the wake of disasters.

To grant deadline extensions to those affeced by disasters, current law requires the IRS to wait for a federal disaster declaration, which cannot happen until after the disaster occurs. State governors have more discretion to issue disaster declarations immediately before, during or after a disaster has occurred. This allows state tax agencies to immediately issue guidance about delayed state tax deadlines.

However, it may be days or weeks after a disaster before a federal declaration. Taxpayers and tax practitioners are stuck waiting for the IRS to issue relief, which can add confusion and unnecessary burdens and complications during a stressful time.

During the 2018 wildfires we saw how this delayed relief could lead to significant complications and stress for taxpayers and tax practitioners. California tax agencies were able to immediately issue an extension to the October filing deadlines, as well as provide tax...