The American Institute of CPAs (AICPA) recommended tax reform proposals to three Senate Finance Committee tax reform working groups. The recommendations included ideas for simplifying business income tax rules and retirement plan rules and for implementing permanent disaster assistance relief.
The AICPA’s March 31 letter to the Senate Finance Committee Tax Reform Working Group on Business Income Tax made suggestions about how Congress could simplify business income taxation. The letter focused on four keys issues: the cash method of accounting, tax return due date simplification, repeal of the alternative minimum tax and pass-through entities. The AICPA provided 18 essential components for pass-through entity reform.
The AICPA made eight recommendations in its March 26 letter to the Senate Finance Committee Tax Reform Working Group on Savings and Investment that would simplify employer-sponsored retirement plans and individual retirement accounts. The letter noted that the Internal Revenue Code “provides for more than a dozen tax-favored employer-sponsored retirement planning vehicles, each subject to different rules pertaining to plan documents, eligibility, contribution limits, tax treatment of contributions and distributions, availability of loans, portability, nondiscrimination, reporting and disclosure.”
In its April 14 letter to the Senate Finance Committee Tax Reform Working Group on Community Development and Infrastructure, the AICPA urged enactment of 10 legislative proposals that would provide permanent, meaningful and timely tax relief that is automatically triggered by a declaration of a federal disaster. The proposals would cover those who live in, or have a principal place of business located in, the federally declared disaster area.
Earlier in March, the AICPA recommended changes to another Senate Finance Committee tax reform working group concerning individuals that would simplify some difficult to understand areas of the tax code and urged adoption of provisions to combat identity theft and tax fraud. For details, see the story in the March issue of The CPA Advocate.