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AICPA has recommended that the IRS implement an automated system for processing Sec. 1033 replacement period extension requests for taxpayers affected by federally declared disasters. In a letter, the AICPA stated: “The IRS could leverage such online accounts to streamline many disaster-related administrative tasks.” Currently, taxpayers face uncertainty due to inconsistent approval times for extension requests. Daniel Hauffe, J.D., AICPA senior manager–Tax Policy & Advocacy, emphasized that automating this process would reduce the IRS's resource allocation and provide certainty for taxpayers replacing property destroyed by disasters. The AICPA also suggested automatic approval for requests pending over a specified timeframe, such as 30 to 60 days. This recommendation aligns with the IRS Advisory Council's similar suggestion in its November 2024 report, IRS Publication 5316.
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