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AICPA Submits Suggestions for the 2024-2025 Guidance Priority List

AICPA encouraged the Department of the Treasury and the IRS to continue pursuing tax simplification, recognizing the balance needed for competing interests and concerns when drafting guidance.

Isaac M. O'Bannon

May. 24, 2024

The American Institute of CPAs (AICPA) submitted comments to the Internal Revenue Service (IRS) containing 189 recommendations regarding the 2024-2025 Guidance Priority Plan. As the IRS plans to prioritize providing additional guidance as stated in the IRS Strategic Operating Plan, the AICPA encourages the IRS to issue guidance on recommended areas.

 In addition, the AICPA encouraged the Department of the Treasury and the IRS to continue pursuing tax simplification, recognizing the balance needed for competing interests and concerns when drafting guidance.  The AICPA urged the following as part of the process:

  • Use the simplest approach to accomplish a policy goal;Provide safe harbor alternatives;Offer clear and consistent definitions;Use horizontal drafting (a rule placed in one Internal Revenue Code section should apply in all other Code sections) to the greatest extent possible;Build on existing business and industry-standard record-keeping practices;Build on existing business and industry-standard record-keeping practices;Provide a balance between simple general rules and more complex detailed rules; andMatch a rule’s complexity to the sophistication of the targeted taxpayers.

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    The AICPA’s recommendations come from the organization’s Taxation Technical Resource Panels, which cover the following areas: Corporations and Shareholders; Employee Benefits; Exempt Organizations; Individual and Self-Employed; International; IRS Advocacy & Relations; Partnership; S Corporation; Tax Methods and Periods; and Trust, Estate and Gift Tax. Eileen Sherr, Director of Tax Policy and Advocacy said, “We are hopeful that Treasury and IRS include many of our suggested items on their priority guidance plan this year. The items are listed in priority order in each area, so we encourage Treasury and IRS to prioritize guidance for the top items in each area.”