Federal Issues

    Tax Legislation and Policy 

    The Congressional and Political Affairs Team often assists the Tax Team with tax legislation and policy issues, and advocates about them to Members of Congress and other key policymakers on behalf of the profession.  Below are several significant current tax issues in which the AICPA is involved.  A complete list of all issues the AICPA is following can be found on the Tax Advocacy webpage.

    Tax Return Due Dates

    The AICPA has long been concerned about the difficulties taxpayers face when receiving delayed Schedules K-1, which are informational documents sent to owners and beneficiaries of partnerships, S-corporations and trusts. Because many of these owners and beneficiaries have due dates similar to Schedules K-1, it often is impossible for those taxpayers to file complete and timely tax returns. Rather, they are forced to file for extensions on their own tax returns.
    To solve this problem, the AICPA supports requiring Schedules K-1 to be filed in advance of the owners’ and beneficiaries’ return due date.  In the 112th Congress, Senator Mike Enzi (R-WY) introduced S. 845, the Tax Return Due Date Simplification and Modernization Act of 2011, a bill that generally incorporates our proposal.  Also in the 112th Congress, Congresswoman Lynn Jenkins (R-KS) introduced H.R. 2382, a bill that generally incorporates our proposal and is similar to Senator Enzi’s bill.  Both Senator Enzi and Congresswoman Jenkins are planning to reintroduce the bills in the 113th Congress.

    Proposed Preparer Regulations

    IRS Commissioner Shulman announced that the IRS would phase in a process to regulate all paid tax return preparers for the 2011 filing season. The proposal will mandate that all paid tax return preparers both register with the IRS and obtain a Preparers Tax Identification Number (PTIN), to be used in signing all tax returns and that all paid preparers be subject to Circular 230. Paid tax return preparers will be subject to an annual CPE requirement as well as an entry competency test. CPA’s are generally exempt from the latter two requirements as they have already passed a licensing examination and are subject to annual continuing professional education requirements. 

    Non-signing preparers who are employed by CPA firms will have to register and receive a PTIN, but will not have to take the exam or meet the IRS’s continuing education requirements.    The IRS’ proposal to require fingerprinting (CPAs would be exempt) as part of a suitability check continues to be on hold while the IRS considers alternatives. The AICPA is pleased that the IRS has modified its regulations from those initially proposed and continues to work with the Service to address issues in the regulations that may adversely affect its members.

    On January 18, 2013, the U.S. District Court for the District of Columbia held that the IRS lacked the statutory authority  to promulgate the PTIN rules that require tax preparers to pass an exam and take continuing education courses.  The court held that requiring tax preparers to register and receive a PTIN is acceptable.  The IRS has announced that it intends to appeal the decision.

    Estate Tax

    Effective January 1, 2010, Congress allowed the Federal Estate and Generation Skipping Tax to expire. Simultaneously the rules on step-up in basis expired and a rule requiring carryover basis for estates. However, effective January 1, 2011, the Federal Estate Tax and Generation Skipping Tax will be automatically reinstated but at their mandated rates and exemption levels as they existed in tax year 2000. The AICPA supports reinstating the Federal Estate Tax at the rates and exemption levels that were in place in 2009 until a permanent solution is found.

    During the lame duck session of Congress in December 2010, a 2-year extension of the estate and gift tax was enacted.  The estate tax has a $5 million exemption and a 35% rate.

    Expiring Tax Provisions

    Congress allowed many temporary tax provisions to expire at the end of 2009 without taking action. This list of expiring provisions includes several business and individual tax issues that are of significant concern to AICPA members and their clients as the impact of these expiring provisions will be that tax liabilities may be significantly changed. The AICPA supports Congressional action to reinstate specific issues on this list.  They were extended for two years during Congress' December 2010 post-election session.  A similar situation is expected to occur in 2012.

    Required Disclosure of Uncertain Tax Positions

    The IRS has continued forward on the required disclosure of uncertain tax positions, with modifications from its original proposal in January 2010.  For tax filings beginning with 2010, disclosure of uncertain tax positions will be required by companies that have audited financial statements prepared under U.S. GAAP, IFRS, or other accounting standards, where the financial statements include a reserve for any uncertain tax positions, as well as for tax positions where a reserve has not been recorded due to an expectation to litigate.  In addition, for 2010 the company must have total assets exceeding $100 million, and file Form 1120, Form 1120 L, Form 1120 PC or Form 1120 F.  The IRS is phasing-in the disclosure such that by 2014 it will apply to companies with total assets exceeding $10 million. The AICPA submitted written comments to the IRS on June 1, 2010 and on December 2, 2010 regarding various aspects of the IRS proposal.  The AICPA continues to discuss with the IRS its concerns with the rule.


    Copy of Legislation

    A copy of all noted bills and laws are available on the Library of Congress's THOMAS website.

    Staff Contact

    Peter M. Kravitz
    Director, Congressional and Political Affairs

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    Accounting Partnership Retirement Practices

    Article In recent years, Equal Employment Opportunity Commission (EEOC) staff have been investigating and considering litigation against accounting firms organized as partnerships with a goal of requiring firm partners to be treated as “employees” for purposes of the Age Discrimination in Employment Act (ADEA). The AICPA has written the EEOC asking
    Published on March 20, 2015

    Federal Legislative and Regulatory Issues

    Federal Law This page highlights the advocacy issues in which the Congressional & Political Affairs Team is advocating on behalf of the profession, and also those issues that the team has recently followed.
    Published on March 20, 2015

    ERISA Fiduciary Definition - Appraisers of Employee Stock Ownership Plans

    Article The AICPA believes that the U.S. DOL should implement rules that would require appraisers of ESOPs to meet minimum qualification requirements, including holding relevant credentials and training, and comply with applicable professional valuation standards.
    Published on March 12, 2015

    Federal Legislative and Regulatory Issues Were Following

    Article Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has sur
    Published on March 11, 2015

    Congressional and Political Affairs Advocacy

    Overview The AICPA monitors and advocates on legislative and other matters that affect the accounting profession. Working with state CPA societies and other professional organizations, the AICPA provides information to and educates federal, state and local policymakers regarding key issues.
    Published on February 05, 2015


    Overview Extensible Business Reporting Language (XBRL) used in financial and other reporting allows for easier access to more transparent information.  AICPA supports legislative proposals to utilize XBRL by companies, Federal agencies and recipients of Federal funds.
    Published on December 15, 2014

    AICPA Letter to House Oversight and Government Reform Committee re DATA Act Implementation Hearing

    Legislative Letters The AICPA wrote to the House Oversight and Government Reform Committee regarding the Committee's hearing entitled "Transforming Federal Spending: Implementing the Digital Accountability and Transparency Act."
    Published on December 15, 2014

    Preserving the Cash Basis Method of Accounting for CPA Firms

    Article The AICPA is opposed to certain provisions included in tax reform proposals that would limit the availability of the cash basis method of accounting.
    Published on September 29, 2014

    Cash Accounting Bipartisan Letter to the House of Representatives

    Legislative Letters
    Published on September 11, 2014

    Cash Accounting Senate Letter

    Legislative Letters
    Published on August 07, 2014

    Camp Letter On Cash Basis April 25, 2014

    Legislative Letters The American Institute of CPAs (AICPA) voices strong opposition to draft legislation that would limit the use of the cash method of accounting for pass-through entities and personal service corporations.
    Published on May 08, 2014

    Convergence of International and US Accounting Principles and IFRS

    Article International Financial Reporting Standards (IFRS) set by the International Accounting Standards Board (IASB) in London is a response to worldwide demand from regulators, investors, businesses, and auditing firms for a single set of high-quality, globally-accepted accounting standards.
    Published on April 17, 2014

    AICPA Letter to SEC on Proposed Regulation Crowdfunding

    Comment Letter AICPA comments on the SEC's proposed new Regulation Crowdfunding under the Securities Act of 1933 and the Securities Exchange Act of 1934 to implement the requirements of Title III of the JOBS Act as published in SEC File No. S7-09-13.
    Published on February 06, 2014

    Jan 2014 - AICPA Statement for the Record regarding Conferences and Travel

    Article AICPA provided a Statement for the Record to the Senate Homeland Security and Government Affairs Committee in  response  to the hearing held on January 14, 2014 entitled, "Examining Conference and Travel Spending Across the Federal Government."
    Published on January 28, 2014

    Cash Basis Letter to Senate Finance Committee from Associations-Jan7-2014

    Legislative Letters Cash Basis Letter to Senate Finance Committee dated Jaunary 7, 2014 from American Council of Engineering Companies, American Dental Association, American Farm Bureau Federation, American Institute of Architects, American Institute of CPAs and S Corporation Association.
    Published on January 22, 2014

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