AICPA to Testify at Jan. 7 IRS Hearing on Mandatory E-Filing by Tax Return Preparers
Kathy Petronchak, Vice Chair of AICPA’s IRS Practice and Procedures Committee, Will Urge More Flexible Phase-In
Published January 06, 2011
The Vice Chair of AICPA’s IRS Practice and Procedures Committee, Kathy Petronchak, will testify at the Internal Revenue Service hearing Jan. 7, 10 a.m. EST on the IRS’s proposals to implement mandatory e-filing in 2011 by tax return preparers for individual, trust, and estate tax returns.
The AICPA believes that the IRS needs to be more flexible in how it implements the mandatory e-filing program because it could be the middle of tax filing season before final regulations are issued. In the meantime, tax preparers will need to continue preparing and filing returns for individuals, as well as trusts and estates, without clear guidance.
The AICPA urges that the IRS phase-in mandatory e-filing by practitioners over a three-year period, as recommended by the IRS Electronic Tax Administration Committee’s 2010 Annual Report to Congress, instead of the proposed two-year period. The 2011 threshold for mandatory e-filing should be raised from 100 or more returns to 200 or more returns, according to the AICPA.
Other areas of the proposed regulations for which the AICPA has recommendations to improve flexibility are undue hardship claim waivers, client opt-out rules and a longer period of time in which to correct errors with returns that are not initially accepted by the IRS’s computer systems because of technological issues.
The IRS hearing will be held at IRS headquarters at 1111 Constitution Avenue, N.W., Washington, D.C.
The AICPA testimony will be available on Jan. 7 from Shirley Twillman at email@example.com.
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