Guest column: This change could lead to faster disaster recovery

David Zoller, director of government and political affairs, Society of Louisiana CPAs

Nov 19, 2024

The Society of Louisiana CPAs has been fortunate to work alongside our federal delegation on issues that matter to our state. Among these, one stands out not only for its immediate impact on Louisiana but for its relevance to countless other states across the country: the urgent need for faster tax filing relief following disasters.

We are grateful to our congressional leaders for securing vital relief from both FinCEN and the IRS after Hurricane Francine wreaked havoc earlier this year. Yet, the current federal framework leaves disaster-impacted families and businesses waiting far too long for relief. 

This is why we are advocating for a critical shift: empowering the IRS to act on state-declared disasters without waiting for a federal declaration. This change, though seemingly small, could be transformative for our communities, ensuring that help arrives when it is most needed.

Today, tax relief linked to disasters typically hinges on a federal disaster declaration, a process that can take weeks, sometimes months. However, when local leaders declare a disaster, it is clear that the impact is already being felt. By enabling the IRS to respond immediately to state declarations, we can eliminate unnecessary bureaucratic delays and accelerate aid to families and businesses as they fight to recover and rebuild.

In tandem, we’re working to enhance disaster response procedures within the IRS for federally declared disasters. Streamlining these processes and automating relief after a declaration could eliminate time-consuming hurdles. 

Equally important, ensuring IRS personnel are well-trained in Section 7508A of the tax code—permitting deadline extensions for affected individuals even without a formal IRS announcement—would mean relief can be initiated swiftly, reflecting the urgency disasters demand.

Louisiana’s story is one of enduring challenges, from relentless hurricanes to devastating floods. We know each day without assistance can mean the difference between recovery and financial ruin. The proposed legislation, which would authorize the IRS to act on state disaster declarations, embodies a pragmatic, common-sense approach that prioritizes local awareness and rapid response over red tape.

This is more than policy; it’s a necessary evolution of our federal disaster response, tuned to the real needs of real people. Louisiana families and businesses should not have to wait for overdue relief when the situation is already clear on the ground. This proposed legislation would bring immediate, meaningful change to a broken system, helping to secure a faster path to recovery for all Louisianans.

David Zoller is director of government and political affairs for the Society of Louisiana CPAs.

This column has been edited for style and clarity.

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