The American Institute of CPAs (AICPA) strongly supports the Tax Return Due Date Simplification and Modernization Act, which would help to alleviate the problem of filing an accurate tax return when a taxpayer receives a late Schedule K-1. The legislation was introduced last year as H.R. 901 in the U.S. House of Representatives by Congresswoman Lynn Jenkins (R-Kansas) and Congressman Joe Crowley (D-N.Y.). Identical legislation was introduced as S. 420 in the U.S. Senate by Senator Mike Enzi (R-Wyo.) and Senator Jon Tester (D-Mont.).
On February 26, 2014, House Ways and Means Committee Chairman Camp released a comprehensive tax reform legislative draft, which includes language similar to the Tax Return Due Date Simplification and Modernization Act. Additionally, on March 3, 2014, the President released the Administration’s Fiscal Year 2015 Budget, which includes a proposal to stagger income tax return due dates so that individuals may receive Schedules K-1 before their income tax return filing due date. These proposals are similar to the language that is supported by the AICPA.
The AICPA is encouraged to see that both Chairman Camp’s tax reform legislative draft and the President’s FY2015 Budget address the challenges faced when Schedules K-1 are not received in a timely matter. Changing the timeline for returns will assist both individuals and businesses participating in partnerships.
The AICPA will continue to work with Congress in order to solve the due date problems faced by taxpayers and tax return preparers.