AICPA Applauds Passage of Disaster Legislation to Extend Lookback Period

Washington, D.C. (December 18, 2025) - The American Institute of CPAs (AICPA) applauds the passage of H.R. 1491, the Disaster Related Extension of Deadlines Act (DREDA), sponsored by Representatives Gregory Murphy (R-NC) and Jimmy Panetta (D-CA), which extends the time for filing a claim for credit or refund (i.e., the lookback period) by the disaster relief postponement period afforded to taxpayers affected by major disasters.

Previously, taxpayers impacted by disasters effectively have less time to make a refund or credit claim than those who are not affected because the deadline for refund or credit claims was based on the original filing deadline and was not extended by the filing and payment disaster relief postponement. The Disaster Related Extension of Deadlines Act solves this problem, offering taxpayers impacted by disasters more opportunities to meet their tax obligations without additional confusion, stress, and anxiety.

The AICPA expressed strong support for this and other disaster-related legislation in a February 2025 letter to House leadership for the Committee on Ways & Means. "We applaud Congress for recognizing the importance of this bill for many Americans by passing this legislation that will now be signed by the President," said Daniel Hauffe, Senior Manager for Tax Policy & Advocacy with the AICPA. "Taxpayers affected by disasters are afforded additional time to comply with tax obligations because of the devastating real-life consequences of natural disasters, and now they will receive the same period of time to make claims for credit or refund as all other taxpayers."

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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Contact: Veronica L. Vera
202-434-9215
[email protected]