The House of Representatives passed four bipartisan bills aimed at making the tax process fairer and more user-friendly, and they’ve gained strong backing from the American Institute of CPAs (AICPA). These measures are designed to reduce confusion, offer clearer communication, and expand relief options for taxpayers, especially in times of hardship.
One of the bills addresses a long-standing issue with how electronic tax submissions are handled. Currently, payments or forms submitted online are marked received when the IRS processes them, which can lead to penalties if there’s a delay. Under this new bill, those electronic submissions would be considered received the day they’re sent, similar to how mail is treated, giving taxpayers more protection and clarity.
Another bill focuses on how the IRS communicates with taxpayers about math or clerical errors. It would require those notices to be written in plain language and make it easier for taxpayers to challenge errors by phone or in person. This is a move toward more accessible and understandable communication between the IRS and the public.
Two additional bills expand the kind of support available to taxpayers impacted by natural disasters. One would give the IRS the ability to offer relief as soon as a state governor declares an emergency, without waiting for a federal declaration. It would also give those affected more time, 120 days instead of 60, to file returns. The other proposal would extend the time disaster victims have to claim refunds or tax credits, ensuring they’re not unfairly penalized because of delays caused by the disaster.
These proposals have been included in recent Senate discussions and are seen as practical updates to the tax system. The AICPA has consistently supported these kinds of changes, calling them common-sense reforms that benefit both taxpayers and professionals who help them navigate the system. With strong bipartisan support already in place, the momentum now shifts to the Senate as these ideas continue to move forward.
