AICPA Sends Tax Proposals to Congress and Senate

The American Institute of CPAs (AICPA) has sent 34 legislative proposals to the top tax lawmakers in the U.S. Congress and Senate. The AICPA believes these proposals promote simplicity and fairness in the tax code, are generally noncontroversial and can be readily addressed.

Troy Lewis, CPA, CGMA, chair of the AICPA Tax Executive Committee, urged that the proposals be incorporated into future tax legislation.

“This Compendium includes items focused on improving tax administration, making the tax code fairer, and effectively promoting important policy objectives,” Lewis wrote. “It is not a comprehensive list of all provisions that we believe should be added back or removed from the reformed Code. We intend to continue our efforts in this area and make further recommendations in the future.”

The proposals relate to individuals, employee benefits, corporations, S corporations, partnerships, trusts, estates, gifts, and exempt organizations, as well as to penalties for tax preparers.

In addition to recommending that Congress harmonize and simplify education-related tax provisions and standardize the allowable mileage rate for business, medical and moving expenses and charitable contribution purposes, three new proposals are included

Standardize the medical lodging deduction limitation with the allowable business per diem rate
Amend section 6694 of the Internal Revenue Code to increase penalties on tax return preparers in certain cases of a fraudulent understatement of a taxpayer’s liability or deterrence
Require Form 1099 reporting of interest and dividends paid to charitable remainder trusts

Lewis noted that the AICPA intends to submit further comments and proposals on major tax issues and reform efforts.