2018 Tax Advocacy Comment Letters

October 16, 2018 – AICPA Oral Testimony for IRS Hearing on REG-107892-18 QBI Deduction
Troy Lewis testified on behalf of the AICPA at a Treasury and IRS hearing concerning the proposed regulations to implement the deduction for QBI under section 199A. Lewis focused his testimony on five of the 11 key areas raised by the AICPA in its written comments about the proposed regulations that were submitted to the Treasury Department and IRS on October 1. The testimony issues included qualification of rental real estate as a trade or business, the recharacterization rules, and the aggregation rules. 

October 9, 2018AICPA Issue Paper on State Pass-through Entity-Level Tax Implementation Issues
AICPA developed an issue paper on state pass-through entity (PTE)-level tax implementation issues and a one-pager summary on the issue. A PTE state-level tax was recently enacted in Connecticut, and other states are considering similar proposals. As states may want to consider enacting PTE-level taxes, states and state CPA societies may want to consider various perspectives and implementation issues regarding this approach. The AICPA does not take any position on these state tax proposals, either as a concept or on any of the specific legislative drafts that some states have recently released. To assist state CPA societies, the AICPA identified a list of issues for consideration in evaluating any proposed state PTE-level tax.

October 9, 2018AICPA Testimony on Centralized Partnership Audit Regime
Michael Greenwald, MPPM, CPA, chair of the American Institute of CPAs’ (AICPA) Partnership Taxation Technical Resource Panel, testified on October 9, 2018 at the IRS public hearing about the proposed regulations regarding the centralized partnership audit regime (REG-136118-15).

October 9, 2018AICPA Comments on Centralized Partnership Audit Regime
The AICPA has submitted a set of comments and recommendations to the IRS and Treasury on the latest set of proposed regulations (REG-136118-15) regarding the Centralized Partnership Audit Regime. The letter identifies 12 areas where further guidance or clarification is needed from the IRS to fairly and properly implement the Regime.

October 1, 2018AICPA Comments on REG-107892-18 199A QBI Deduction
The AICPA respectfully submits our comment letter & appendix regarding guidance concerning the deduction for qualified business income (QBI) under section 199A of the IRC. Our letter includes both the AICPA priority questions as well as our suggested responses to those questions. We have also attached an appendix of other issues affecting QBI that warrant guidance.

September 25, 2018AICPA Updated Position Paper on State Conformity to the IRS Centralized Partnership Audit Regime
AICPA developed an updated position paper on state conformity to federal partnership audit rules and a one-pager summary on the issue. State CPA societies should carefully analyze the effect of the Regime on current state partnership audit rules and work with their state legislatures and tax authorities on adopting the model statute developed by a coalition of interested organizations, including the AICPA, in conjunction with the Multistate Tax Commission. The AICPA recommends undertaking a process of identifying those state specific areas that the new Regime will impact and developing potential options to address them. 

September 25, 2018 - AICPA Comments on Tax Reform 2.0
The AICPA appreciates the U.S. House of Representatives’ efforts to consider tax reform issues outstanding after the Tax Cuts and Jobs Act. The AICPA is a long-time advocate for an efficient and pro-growth tax system based on principles of good tax policy. We need a tax system that is fair, stimulates economic growth, and has minimal compliance costs. In this regard, we urge Congress to move us closer to a fairer Tax Code that drives economic opportunities for individuals and families, while leveling the playing field for American businesses in the U.S. and abroad.

September 17, 2018 - AICPA Comments on 965 Overpayments
The AICPA urged Treasury and the IRS to modify two posted FAQs and a Chief Counsel Memorandum regarding the application of 2017 tax overpayments to a taxpayer’s section 965 installment payments. The AICPA recommended that the IRS provide taxpayers with the ability to direct the application of any overpayment to one of several options or request a refund.

September 13, 2018AICPA Comments to IRS and Treasury on Individuals, Trusts and Estates and Section 965 Issues
AICPA submitted comments to the IRS and Treasury, requesting immediate guidance on the reporting for individuals, trusts and estates of the transition tax under section 965.

August 30, 2018 - AICPA Comments on CFC Audit Protection (Notice 2015-13)
The AICPA has submitted comments requesting immediate guidance providing additional clarification on the 150 percent special rule referenced in Rev. Proc. 2015-13. The AICPA recommends that Treasury and the IRS provide guidance that the amount of deemed foreign taxes paid in the inclusion year under section 965 are excluded from the calculations used to exclude a taxpayer from audit protection for an accounting method change under the special rule of section 8.02(5) of Rev. Proc. 2015-13.

August 29, 2018AICPA Comments on ASU 2017-07 (Topic 715)
The AICPA has submitted comments requesting that the IRS and Treasury issue guidance providing for an automatic method change for any accounting method change that is necessary to implement the effect of ASU 2017-07 on the costing of inventory for tax purposes.

August 28, 2018AICPA Request for Guidance on Reporting the Transition Tax under Section 965
The AICPA urges the IRS to provide automatic relief from penalties incurred by a taxpayer who has acted reasonably and made a good faith effort to properly report their section 965 tax liability on their 2017 tax returns. In the absence of updated forms or instructions for the 2017 tax year or binding guidance, taxpayers are unaware what information is required or how to properly report such information for Form 5471 to meet the ‘substantially complete’ definition and thus avoid penalties under sections 6038, 6038A and 6046.

August 13, 2018AICPA Comments on Request for Immediate Guidance Regarding S Corporation Items Included in Pub. L. No. 115-97
The AICPA respectfully requests immediate guidance on various S corporation items included in Pub. L. No. 115-97 (commonly referred to as the Tax Cuts and Jobs Act (TCJA)). We have identified certain items affecting S corporations that we recommend the government address in the coming months. We urge the Department of the Treasury and the Internal Revenue Service to focus their attention on these areas in need of priority guidance. Our letter includes both the AICPA priority issues and the recommendations to resolve these issues.

August 2, 2018AIPCA Comments on Hardship Distributions from Section 401(k) Plans and Section 403(b) Arrangements Resulting from Casualty Losses (Pub. L. No. 115-97, Sec. 11044(a))
The AICPA asks the IRS and Treasury to provide guidance correcting the effect of the amendment of section 165 by the Tax Cuts and Jobs Act, on the ability of section 401(k) plans and section 403(b) annuities to issue hardship distributions pursuant to the criteria of Treas. Reg. § 1.401(k)-1(d)(3)(iii)(B)(6). 

August 1, 2018AICPA Comments on Protecting Taxpayers Act (S. 3278)
The AICPA comments on “Protecting Taxpayers Act” (S. 3278). Specifically, the AICPA supports Section 202, Regulation of Tax Return Preparers, which will help to promote good tax administration and protect the interests of the American taxpayer by protecting taxpayers from incompetent and unscrupulous preparers.

July 24, 2018AICPA Comments on IRS Notice 2018-24
The AICPA submits a comment letter in response to IRS Notice 2018-24 - Request for Comments on Scope of Determination Letter Program for Individually Designed Plans during Calendar Year 2019. The letter expresses our support of the IRS and Treasury’s plan to expand the scope of the determination letter program to accept applications for determination letters for certain IDPs during 2019.

July 23, 2018 - AICPA Comments on Impact of Pub. L. No. 115-97 on Accounting Methods for Small Business Taxpayers
The AICPA submits their recommendations with respect to the impact of Pub. L. No. 115-97 (commonly referred to as the Tax Cuts and Jobs Act (TCJA)) on accounting methods changes for small business taxpayers.

July 12, 2018AICPA Comments on the 2019 Draft Form W-4 and Instructions
The AICPA submitted comments on the 2019 draft Form W-4, Employee’s Withholding Allowance Certificate, and its instructions. We recommend a simplified Form W-4 that reduces administrative burden, protects employees from an invasion of privacy and avoids the shifting of additional onus onto employers.

July 9, 2018AICPA Comments on Notice 2018 – 28 – Initial Guidance Under Section 163(j)
The AICPA responds to Notice 2018-28, related to the IRS and Treasury’s request for feedback on section 163(j) as amended by the Tax Cuts and Jobs Act.

June 14, 2018 - AICPA Submits 2018-2019 Priority Guidance Plan
The AICPA submitted the 2018-2019 Priority Guidance Plan that identifies and prioritizes guidance projects that the Treasury Department and the IRS should address through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance.

June 13, 2018 - AICPA Comments on Notice 2018-23 – Transitional Guidance Under Sections 162(f) and 6050X
The AICPA has submitted comments to the IRS as requested by Notice 2018-23 regarding transitional guidance under sections 162(f) and 6050X, with respect to certain fines, penalties and other amounts. Our letter includes recommendations for safe harbors to reduce the burden on taxpayers, governments and nongovernmental entities subject to the reporting requirements in section 6050X, and on the IRS during examinations.

June 13, 2018Written and Oral Comments on Multistate Tax Commission (MTC) Draft Model Sales and Use Tax Notice and Reporting Statute (Dated April 25, 2018)
AICPA submitted written comments and testified at the June 14, 2018 hearing on the Multistate Tax Commission (MTC) Draft Model Sales and Use Tax Notice and Reporting Statute dated April 25, 2018 (Draft Model Statute).

May 30, 2018 - AICPA Comment Letter on Notice 2014-21 Virtual Currency
The AICPA recommends the IRS release immediate guidance regarding the tax treatment of virtual currency transactions, similar to that of Notice 2014-21 so that authoritative guidance exists. Specifically, we request additional guidance that will address items from the original Notice 2014-21, and new issues that are relevant to the 2017 tax year, such as chain splits, that have arisen subsequent to the release of the original notice.

May 21, 2018AICPA Comments on REG-125946-10
The AICPA has submitted comments to the IRS as requested by REG-125946-10 regarding the proposed Dollar-Value LIFO Regulations: Inventory Price Index Computation Method Pools. Our letter includes recommendations for changes to the proposed regulations to reduce the compliance burden on taxpayers and IRS exam controversy.

May 16, 2018AICPA Proposed Regulations Regarding the Centralized Partnership Audit Regime: Adjusting Tax Attributes (REG-118067-17)
The AICPA has submitted comments to the IRS related to proposed regulations on adjusting tax attributes under the Centralize Partnership Audit Regime. The AICPA has recommended that the IRS provide maximum flexibility in adjusting the tax attributes of an audited partnership and its partners, including a proposed simplified procedure.

May 7, 2018AICPA Comments on the Form 990 and Related Instructions
The AICPA Exempt Organizations Taxation Technical Resource Panel submitted comments on the Form 990, Return of Organization Exempt from Income Tax, and the related instructions. 

May 2, 2018AICPA Comments to the IRS Informal “No-Rule” Policy on Certain S Corporation Matters
The IRS has informally implemented a “no-rule” policy pursuant to which it will not issue rulings involving certain S corporation matters. The AICPA submits recommendations for the IRS to consider regarding its proposed no-rule policy. Specifically, we request for the IRS to (a) ensure that the no-rule policy does not become overly broad, (b) formally define and publish the parameters of the no-rule policy, and (c) issue a revenue ruling or other authoritative pronouncement to provide clarity for certain S corporation matters on which the IRS will no longer rule.

April 19, 2018AICPA Q & A about Reporting Related to Section 965 on 2017 Tax Returns - IRS Update of April 13, 2018
The AICPA has urged the IRS to modify two recently posted FAQs regarding the application of 2017 tax overpayments to a taxpayer’s section 965 installment payments. The AICPA recommended that the IRS provide taxpayers with the ability to direct the application of any overpayment to one of several options or request a refund.

April 17, 2018AICPA Requests Treasury Delay the Effective Date of Sec 512(a)(6) Separate UBTI Computation
The AICPA respectfully requests that Treasury delay the effective date of section 512(a)(6), Unrelated Business Taxable Income Separately Computed for Each Trade or Business Activity (Pub. L. No. 115-97, Sec. 13702), for one year until December 31, 2018.

April 17, 2018AICPA Requests Congress Delay the Effective Date of Sec 512(a)(6) Separate UBTI Computation
The AICPA respectfully requests that Congress enact legislation to delay the effective date of section 512(a)(6), Unrelated Business Taxable Income Separately Computed for Each Trade or Business Activity (Pub. L. No. 115-97, Sec. 13702), for one year until December 31, 2018.

April 6, 2018 - AICPA Comments on HWM Discussion Draft - Taxpayer First Act Draft
The AICPA applauds the leadership taken by the House Ways and Means Oversight Subcommittee to release the “Taxpayer First Act” discussion draft to redesign the IRS. We are committed to supporting Congress in its efforts to ensure a service-oriented, modernized tax administration and appreciate the opportunity to provide comments.

April 4, 2018Questions and Answers about Reporting Related to Section 965 on 2017 Tax Returns
The AICPA has requested additional guidance form the IRS on several specific filing scenarios related to the reporting and payment of the Section 965 repatriation tax, as enacted by P.L. No. 115-97, by taxpayers on their 2017 tax returns.

April 2, 2018 AICPA Request for Immediate Guidance Regarding IRC Section 274 – Disallowance of Certain Entertainment, Etc., Expenses (Pub. L. No. 115-97, Sec. 13304)
The AICPA asked that Treasury and the IRS provide immediate guidance on the changes to section 274 as made by the Tax Cuts and Jobs Act related to the disallowance of entertainment, amusement, recreation and qualified transportation fringe expenses. We provided our recommendations on the deductibility of these items along with examples, which illustrate our suggestions.

March 19, 2018 - AICPA joined 40 National Trade Associations in submitting the Business Community Letter on Aggregation under 199A
The AICPA joined 40 national trade associations in submitting a comment letter to Treasury and the IRS on the need to permit pass-throughs to aggregate business entities when claiming the new 20 percent tax deduction under IRC section 199A. This guidance is necessary because it is common for businesses to separate back-office functions like real estate or payroll in different entities from operations. On February 21, 2018, the AICPA submitted a comment letter recommending aggregation of business entities along with a list of other items affecting QBI that the AICPA believes warrant guidance.  

March 13, 2018AICPA Request for Regulatory Relief from Unintended Consequences Created by the Repeal of Section 958(b)(4)
The AICPA has recommended that Treasury and the IRS provide relief to certain taxpayers facing unintended consequences from the repeal of section 958(b)(4) creating “downward attribution.”

February 28, 2018 - AICPA Statement for Record of Hearing on “The President’s Fiscal Year 2019 Budget
The AICPA submits the statement for the record of the hearing on February 14, 2018 on “The President’s Fiscal Year 2019 Budget.” We appreciate the leadership taken by the Senate Finance Committee for your commitment to ensuring the success of the new tax reform laws and for considering various approaches to enable the Internal Revenue Service to implement those changes while providing quality service to individuals and businesses, as well as their advisers.

February 22, 2018AICPA Request for Technical Corrections Regarding Pub. L. No. 115-97
The AICPA respectfully recommends Congress address technical corrections on various provisions under Pub. L. No. 115-97 (Tax Cuts and Jobs Act), which revised many sections of the IRC. We have highlighted preliminary areas that need technical corrections.

February 21, 2018AICPA Comment Letter Request for Immediate Guidance Regarding IRC Section 199A
The AICPA requested immediate guidance from the Internal Revenue Service (IRS) and U.S. Department of the Treasury on various issues regarding section 199A of the new Internal Revenue Code, the deduction for qualified business income (QBI) of pass-through entities. The letter also included a list of other issues affecting QBI that the AICPA believes warrant guidance.

Specifically, the letter recommended immediate guidance on the following issues:
I. Definition of section 199A QBI
II. Aggregation method for calculation of QBI of pass-through businesses
III. Deductible amount of QBI for a pass-through entity with business in net loss
IV. Qualification of wages paid by an employee leasing company
V. Application of section 199A to an owner of a fiscal year pass-through entity ending in 2018
VI. Availability of deduction for Electing Small Business Trusts (ESBTs)

February 8, 2018 - AICPA Request for Penalty Relief for First-Time Filers of Form 5471
The AICPA has urged the Internal Revenue Service to provide prospective penalty relief to any first-time filer of Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, whose filing obligation results solely from the imposition of “downward attribution” created by the provisions of Public Law No. 115-97 (commonly referred to as the Tax Cuts and Jobs Act).

February 8, 2018AICPA Statement for Record of HWM Hearing on Legislation to Improve Tax Administration
The AICPA applauds the leadership taken by the House Ways and Means Oversight Subcommittee to consider legislative solutions related to reforming the Internal Revenue Service. We are committed to supporting Congress in its efforts and provide a series of recommendations that will strengthen tax administration and improve compliance programs while protecting the public.

January 30, 2018AICPA Comments on Ensuring Treasury/IRS has the Resources to Provide Taxpayer Service and Guidance
The AICPA urges Congress to ensure that Treasury and the IRS have the appropriate resources to provide necessary guidance and timely taxpayer assistance on the recently-passed tax reform legislation 

January 29, 2018 - AICPA Request for Immediate Guidance Regarding Pub. L. No. 115-97
The AICPA respectfully requests immediate guidance on various provisions regarding Pub. L. No. 115-97, which revised many sections of the IRC. We have highlighted some of the specific areas that need immediate guidance in order for taxpayers and practitioners to comply with their 2017 tax obligations and to make informed decisions regarding cash-flow, entity structure, retirement, wealth transfer and a vast number of other tax planning issues.

January 4, 2018AICPA Request for Delay of Effective Date of BBA Partnership Audit Provisions
AICPA has reiterated its request that Congress enact legislation to delay the effective date of the “Centralized Partnership Audit Regime” created by the Bipartisan Budget Act of 2015 for one year.

 

Tax Policy & Advocacy letters, testimony and related documents for 2013201420152016 and 2017.