AICPA Survey Reveals What Relief Americans Want from the IRS Following a Natural Disaster

Extensions of filing and payment deadlines among the top responses from Americans who were victims of a natural disaster

WASHINGTON, July 23, 2025 /PRNewswire/ -- In a survey conducted recently by The Harris Poll on behalf of the American Institute of CPAs (AICPA), Americans were asked which type of tax filing and payment relief would be helpful after experiencing a natural disaster:

• Thirty-five percent say it would be helpful to have the Internal Revenue Service (IRS) further extend the tax relief (i.e., extension on filing taxes and payment) beyond what was initially provided when the state of emergency was declared.
• Twenty-nine percent say it would be helpful if the IRS could improve the process for requesting an extension when your property is involuntarily converted (i.e., when there is loss of property to circumstances beyond your control – fire, theft, disaster, etc.).
• Twenty-one say it would be helpful if the IRS could stagger individual and business deadlines for tax relief (i.e., separate extended deadlines for filing personal and business taxes and payment) after a national disaster.

The AICPA survey 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:

• Eleven percent say they received tax relief from the federal government less than a month after being impacted by a natural disaster.
• Twenty-five percent say it took one month to less than 6 months to receive tax relief from the federal government after being impacted by a natural disaster.
• Twenty-eight percent say it took 6 months to less than a year to receive tax relief from the federal government after being impacted by a natural disaster.
• Fourteen percent say it took one year or more to receive tax relief from the federal government after being impacted by a natural disaster.
• Twenty-two percent 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," says Melanie Lauridsen, vice president of AICPA Tax Policy & Advocacy. "These poll results clearly show that Americans are in need of additional and more immediate relief from the federal government during these challenging times."

The survey also revealed that more than two in five Americans (42%) noted that if they experienced a natural disaster, it would be helpful if the IRS could offer 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 law just passed unanimously in both chambers of Congress, and awaiting signature by the President, provides Americans with the relief they need following a state disaster declaration.

"This new law is a win for taxpayers nationwide. The timeliness of tax filing and payment relief following a disaster, especially when disasters strike close to filing deadlines, can give taxpayers one less thing to worry about as they begin the process of rebuilding. We are grateful to Congress for working together to ensure that taxpayers can get the relief they need immediately following a disaster," continued Lauridsen.

Tax Filing Advice from CPAs

Americans impacted by a disaster still must comply with tax obligations. Here are some things that can help taxpayers navigate the web of tax compliance following a disaster:

Stay Up to Date on Tax Relief

• The IRS may grant additional time to file returns and pay taxes for a federally declared disaster area. Find the latest news following a disaster on the IRS's Tax Relief in Disaster Situations page. FAQs are also available to assist taxpayers.
  
  
• Search out your state's tax and local government offices for relief policies as state legislation may not follow federal legislation when it comes to disaster relief. See also AICPA's State Disaster Tax Relief Guide.

Natural Disaster-Related Tax Tips

• Individuals can claim a casualty loss tax deduction for damaged or destroyed property due to a federally or state declared disaster. The damage must be documented with photos or video and receipts for repairs and records of insurance or other reimbursements must be kept.
  
  
• For disasters with an incident period beginning after Dec. 27, 2020 and before July 5, 2025, taxpayers are generally eligible for qualified disaster loss treatment, which waives the 10% of adjusted gross income (AGI) limitation, sets the casualty loss floor to $500, and allows individuals to add the casualty loss deduction to their standard deduction.
  
  
• Disaster victims may be eligible to take special disaster distributions from retirement plans without incurring the additional 10% early distribution penalty.

CPAs play a critical role in disaster planning, relief and recovery — helping individuals and businesses navigate financial and tax challenges. To create this wholistic approach, the AICPA personal financial planning team provides planning advice; the AICPA tax policy and advocacy team continues to support tax relief immediately following a disaster; the AICPA forensic valuation services team provides fraud detection and prevention as well as business interruption resources to CPAs and their clients once a disaster has occurred.

Find AICPA/Harris Poll survey data regarding disaster financial planning as well as examples of planning advice here.

Survey Method:

This survey was conducted online within the United States by The Harris Poll on behalf of AICPA from June 13 - 17, 2025 among 2,093 adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact the AICPA.

About the American Institute of CPAs

The American Institute of CPAs^® (AICPA^®) is the world's largest member association representing the CPA profession, with 397,000 members and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. A founding member of the Association of International Certified Professional Accountants, the AICPA sets ethical standards for the profession, attestation standards, and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, partners across the profession to build future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.

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SOURCE AICPA