TheAICPA and its members distributed Natural Disasters: The Case for Permanent Tax Relief on Tuesday to members of Congress and their staff. The publication describes the history of disaster relief in the United States and the important role that tax relief plays for individuals and business in recovering from natural disasters.
Federal tax relief for natural disaster victims is currently dependent on Congressional action after every disaster event. The AICPA is urging Congress to enact permanent tax relief measures that automatically apply once a presidential disaster declaration has been issued.
In the publication, the AICPA outlines 10 disaster tax relief measures that should permanently be enacted into law in order to provide fairness, consistency and certainty for taxpayers who are the victims of natural disasters. The relief, which would expand victims’ financial capabilities and allow greater access to their own funds, would be automatic for taxpayers with a main residence or business in a presidentially declared federal disaster area.
Among other things, the proposals would enable victims to use their own money from retirement accounts without penalty, ease limits on deductions for casualty losses for individuals and allow businesses additional time to claim net operating losses.
To read or download the full publication, head to the AICPA's sitehere.