AICPA is calling on the IRS and the Treasury Department to revise Draft Publication 547 to ensure taxpayers clearly understand their eligibility for disaster tax relief under the Federal Disaster Tax Relief Act of 2023 (FDTRA).

In a letter to the IRS, the AICPA emphasized that the current draft lacks clarity and could lead to misinterpretation of qualified disaster loss provisions. 

One of the main concerns is the complexity surrounding disaster relief deadlines, as multiple timelines must be met for taxpayers to qualify for relief. Additionally, the relevant tax provisions are only found in legislative text rather than the Internal Revenue Code, making them difficult to locate and interpret. 

To improve accessibility and comprehension, the AICPA recommends that the final version of Draft Publication 547 explicitly define the timeline for covered disasters, including those declared by the president between Jan. 1, 2020 and Feb. 10, 2025.

The AICPA also urges the IRS to include direct links to the IRS disaster relief website and Federal Emergency Management Agency’s list of federally declared disasters, ensuring taxpayers can easily verify their eligibility. 

“Updating this publication would help taxpayers and tax practitioners readily determine whether they or their clients are eligible for disaster tax relief," said Daniel Hauffe, AICPA senior manager of tax policy & advocacy.