AICPA Identifies Eight Essential Issues for Small Business Tax Reform

May 14, 2015

Men at construction siteIn written testimony to the House Small Business Committee, the American Institute of CPAs (AICPA) identified eight issues it believes are essential for Congress to consider in order to achieve small business tax reform.  The testimony was submitted for the record of the hearing the committee held on April 15, entitled “Tax Reform: Ensuring that Main Street Isn’t Left Behind.”
In its testimony, the AICPA explained why each of the issues is important for small business tax reform and made recommendations.  The eight issues are: 

  • Cash method of accounting
  • Tangible property regulations – de minimis safe harbor threshold
  • Civil tax penalties
  • Permanence of tax legislation
  • Retirement plans
  • Alternative minimum tax repeal
  • Tax return due date simplification
  • IRS taxpayer assistance

“Compliance burdens for small business taxpayers are too heavy, both in terms of time required and out-of-pocket cost,” the AICPA stated in its testimony.  “The proliferation of new income tax provisions since the 1986 tax reform effort has led to compliance hurdles for taxpayers, administrative complexity, and enforcement challenges for the IRS.  We encourage you to examine all aspects of the tax code to improve the current rules.”