Taxes
AICPA Requests IRS Broaden Relief and Lookback Period for All Disasters
The National Taxpayer Advocate identified this issue as part of its Annual Report to Congress, or Purple Book, highlighting the need for particular attention.
Mar. 30, 2023
The American Institute of CPAs has submitted a letter to the Department of the Treasury and the Internal Revenue Service (IRS) requesting a broadening of relief provided administratively under section 7508A(a) of the Internal Revenue Code and automatically providing such postponed date lookback period as part of its administrative relief for all disasters going forward.
The National Taxpayer Advocate identified this issue as part of its Annual Report to Congress, or Purple Book, highlighting the need for particular attention. The AICPA supports the Purple Book’s recommendation that Congress amend the lookback period so that when the IRS postpones a filing deadline due to a disaster declaration, taxpayers can claim refunds within three years plus the period of the postponement.
The letter highlights a recent example, noting that the IRS recently extended tax deadlines to October 16 for disaster area taxpayers in California, Alabama, and Georgia. Taxpayers impacted by these and other disasters should also have the benefit of the lookback period being aligned with the postponed return filing due date.
“The AICPA is grateful for the relief provided by the IRS in response to the COVID-19 pandemic and its continued impacts,” said Peter Mills, AICPA Senior Manager for Tax Policy & Advocacy. “Disasters can have a devastating impact on families and businesses, and we urge the IRS to make the lookback period relief broader and automatic for all federally-declared disasters moving forward,” he continued.