Business Tax Reform is Urgent, AICPA Tells Congress

The American Institute of CPAs (AICPA) has sent written testimony to Congress saying the need for small business tax reform is urgent.

In a letter submitted on Thursday, April 23, 2015, to the House Small Business Committee, the organization pointed out eight issues it believes are essential for Congress to consider in order to achieve small business tax reform. It has been entered into committee’s record of the hearing the committee held on April 15, 2015 entitled “Tax Reform: Ensuring that Main Street Isn’t Left Behind.”

In its testimony, the AICPA explained why each of the issues is important for small business tax reform and made recommendations. The eight issues are:

Cash method of accounting
Tangible property regulations – de minimis safe harbor threshold
Civil tax penalties
Permanence of tax legislation
Retirement plans
Alternative minimum tax repeal
Tax return due date simplification
IRS taxpayer assistance

“Compliance burdens for small business taxpayers are too heavy, both in terms of time required and out-of-pocket cost,” the AICPA stated in its testimony. “The proliferation of new income tax provisions since the 1986 tax reform effort has led to compliance hurdles for taxpayers, administrative complexity, and enforcement challenges for the IRS. We encourage you to examine all aspects of the tax code to improve the current rules.”