In a letter to Congressional leadership in the Senate Finance and House Ways & Means Committees, the American Institute of CPAs (AICPA) highlighted a number of legislative proposals directly related to possible changes to the tax rules. The 2025 tax priorities outlined in the letter included several proposals from the AICPA’s 2025 Compendium of Tax Legislative Proposals – Simplification and Technical Proposals, which included 69 suggested simplification of and technical changes to provisions in the Internal Revenue Code.
The AICPA’s Tax Priorities include:
- Include the Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1151 / S. 756), allowing 529 plan funds to be used for post-secondary credential expenses.
- Provide permanent and consistent tax relief to individuals and businesses affected by natural disasters, such as the Filing Relief for Natural Disasters Act (H.R. 517 / S. 132).
- Retain the qualified business income (QBI) deduction and expand the QBI deduction limit phase-in range.
- Extend the section 174 research and experimental costs expensing and other related expired/expiring provisions of the Tax Cuts and Jobs Act of 2017 (TCJA).
- Preserve the pre-TCJA full deduction for all state and local taxes paid or accrued in carrying on a trade or business, whether paid at the entity level or by a partner/owner.
- Continue the TCJA higher exemption amounts for the individual Alternative Minimum Tax, which simplifies filing for many taxpayers.
- Preserve the current availability of the cash method of accounting for tax purposes.
- Increase the Form 1099-K reporting threshold from $600 to $10,000 or above for third-party payment platforms.
- Include the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act (S. 400), which would provide certainty to businesses by making a temporary paid family leave tax credit permanent.
While the tax priorities letter focuses on a select number of provisions that the AICPA is immediately focused on due to their possible consideration as part of the upcoming 2025 tax legislative process, the 2025 Tax Legislative Compendium is an exhaustive list of 69 tax proposals that the AICPA’s tax committees and panels have developed and updates each Congress for consideration.
The AICPA’s 2025 Tax Legislative Compendium contains 69 proposals, including 14 disaster tax relief recommendations. The overall goal for these proposals is to improve tax administration, make the tax code fairer, and effectively promote important policy objectives.
“Each new Congress, the AICPA sends Congress our recommendations for simple fixes to technical issues they can address as they draft tax legislation,” says AICPA vice president of Tax Policy and Advocacy, Melanie Lauridsen. “Our tax legislation priorities include recommended proposals that would reduce uncertainty and complexity for taxpayers, improve simplification within the tax system, and transform how taxpayers and tax practitioners interact with the IRS, while our 2025 Compendium addresses significant issues affecting businesses, taxpayers and their accounting representative.”
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