COCPA joins AICPA and other state societies in supporting taxpayer-focused legislation

When wildfires, floods, or other disasters strike, the last thing on anyone’s mind should be taxes. But until now, taxpayers and practitioners often found themselves waiting weeks—or even months—for federal disaster declarations before knowing if the IRS would grant filing extensions or relief.

That’s about to change.

Earlier this year, the U.S. House of Representatives unanimously passed the Filing Relief for Natural Disasters Act (H.R. 517), and the Senate has now followed suit, sending the bill to the President’s desk for signature. This bipartisan legislation—championed by the AICPA and supported by state CPA societies like COCPA—would give the IRS clear authority to postpone tax deadlines as soon as a state governor declares a disaster or emergency, eliminating the current dependency on federal declarations.

Why This Matters

Under the existing process, federal tax relief can only be granted once a federal disaster is declared. That often leaves taxpayers in limbo, unsure if they’ll receive filing relief even as they deal with evacuation orders, property loss, and immense emotional and financial stress.

The new legislation cuts through that red tape. Once signed into law, it will:

• Authorize the IRS to act immediately based on a state-level disaster declaration.
• Provide certainty to taxpayers and practitioners about filing deadlines during emergencies.
• Allow relief to begin earlier, helping people focus on what matters most—safety and recovery.

Advocating for What’s Right

COCPA was proud to stand alongside the AICPA and other state societies in pushing for this change. We know firsthand how disasters impact Colorado communities, and we’ve seen how delays in tax relief only make a difficult situation worse. We believe taxpayers deserve clarity, compassion, and commonsense processes—especially in times of crisis.

As AICPA President & CEO Mark Koziel put it, “This is a major win for taxpayers and tax practitioners across the country... This bill will allow those impacted by a natural disaster to have certainty that tax filing deadlines will be extended earlier in the process, and sometimes before the disaster occurs.”

We couldn’t agree more.