2020 Tax Policy & Advocacy Comment Letters

November 23,2020 AICPA Comment Letter on Proposed Regulations Under Section 1061
The AICPA is pleased to submit comments on the proposed regulations under section 1061. Our comments, if adopted in final regulations, would decrease the complexity and increase the practicality of the proposed regulations. The AICPA provides specific recommendations and addresses a variety of issues in the comment letter, including the following:

  • The capital interest exception;
  • The correct recharacterization amount;
  • Eliminating mandatory revaluations through tiered partnership structures; and
  • Certain transfers to related parties.

November 16,2020 AICPA Request for Permanent Electronic Submission Options for Accounting Method Changes
The AICPA is pleased to submit our recommendation that Treasury and the IRS make permanent, the temporary procedures allowing for the electronic submission of Form 3115, Application for Change in Accounting Method. 

November 9, 2020 - AICPA Comment Letter on Penalty Relief for 2019 Tax Year Filing Season
The AICPA appreciates the numerous changes the IRS has made to provide payment relief to taxpayers affected by the Coronavirus through IR-2020-248. However, many taxpayers and tax preparers faced insurmountable challenges and were unable to pay taxes or timely file tax returns by the extended due date, despite making good faith efforts to do so. Further penalty relief is needed.

October 22, 2020 - AICPA Comments on Overpayments, Section 965(h) Transition Tax Installments, and Net Operating Loss Carryback Relief under the CARES Act
The American Institute of CPAs (AICPA) requests for Congress to enact legislation to permit taxpayers with outstanding section 965(h) installments to obtain a refund for overpayments of tax, notwithstanding any future installment amounts of section 965 transition tax liability.

October 9, 2020 - AICPA Request for Guidance Related to the Employee Retention Credit Provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The AICPA has requested that Treasury and the IRS issue additional guidance related to the Employer Retention Credit (ERC). We also provided specific recommendations related to a variety of issues, including the following:
• Mutually exclusive nature of the ERC and Paycheck Protection Plan (PPP) loans in mergers and acquisitions.
• Allowing intermediate entities (entities in the middle of a supply chain) to be considered partially suspended due to a shutdown in situations where their business customers are closed due to a governmental order.

October 1, 2020 - AICPA Comments on the Employer Payroll Tax Deferral Provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The AICPA submitted comments to the IRS and Treasury to request that Form 941 be updated to allow employers who deferred their portion of Social Security taxes, to be able to pay the amounts before the 2021 and 2022 due dates.

September 29, 2020AICPA Comments on Proposed Regulations on Excise Tax Imposed under Section 4960.
The AICPA is pleased to comment on the proposed regulations on excise tax imposed under section 4960, excess remuneration.

September 15, 2020AICPA Comments on Notice 2020-43 – Tax Capital Reporting
The AICPA is submitting comments regarding Tax Capital Reporting for partnerships in response to Notice 2020-43.

September 14, 2020AICPA Comments on Proposed International Changes to Form 1065, Schedule K-2, and Schedule K-3
The AICPA submits comments on the proposed international changes to Form 1065, Schedule K-2, and Schedule K-3. We recommend transmittal of Schedule K-3 in portions and minimizing overreporting by allowing partnerships the ability to determine the reporting needs of its partners.

September 9, 2020 - AICPA Comments on Rev. Proc. 2020-23 and Request to Extend Deadline to December 31, 2020
The AICPA is submitting comments requesting an extension of time to file amended partnership returns provided for in Rev. Proc. 2020-23 until December 31, 2020.

September 9, 2020AICPA Comments on Proposed Regulations (REG-106864-18) Regarding Unrelated Business Taxable Income Separately Computed for Each Trade or Business Pursuant to Section 512(a)(6)
The AICPA is pleased to comment on the rules described in the proposed regulations related to section 512(a)(6) regarding unrelated business taxable income.

August 27, 2020 AICPA, COST Lead Letter Urging Congressional Support for State Tax Filing Relief for Remote Workers
The AICPA and the Council on State Taxation (COST) led a group of more than 120 organizations in a letter to congressional leaders urging the enactment of Section 403 of S.4318, the American Workers, Families and Employers Assistance Act, and a related measure, S.3995, the Remote and Mobile Worker Relief Act, which provide relief for nonresidents’ state tax withholding and liability while teleworking during the pandemic and in the future.

August 25, 2020AICPA Comment Letter on Tax Methods and Periods Priority Issues
The AICPA is pleased to submit comments on priority issues relating to tax methods and periods that are significantly affecting our members.

August 19, 2020 - AICPA Comments on Temporary IRS Guidance for Electronic Signature Program
The AICPA requests that IRS, to at a minimum, expand the scope of the June 12, 2020 memorandum (Control Number NHQ-01-0620-0002) to all e-file signature authorization forms, and non-income tax returns, including paper-filed returns.

August 12, 2020 AICPA Comment on the Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster
The AICPA submitted comments and recommendations related to the Presidential Memorandum on deferring certain employee payroll tax obligations, for IRS and Treasury consideration as they develop initial guidance.

August 12, 2020 - AICPA Comment Requesting Penalty Relief for 2019 Tax Year Partnership Filings
The AICPA is submitting comments requesting penalty relief for 2019 tax year partnership filings.

August 7, 2020 - AICPA's 2020-2021 Priority Guidance Plan Recommendations
The AICPA offers our suggestions regarding the 2020-2021 Guidance Priority List.

August 4, 2020 - Coalition Letter Supporting Tax-Free PPP Loan Forgiveness
The AICPA joined a group of more than 170 organizations in a letter to House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Mitch McConnell (R-KY) encouraging a technical correction to address the tax treatment of loan forgiveness under the Paycheck Protection Program (PPP).

July 30, 2020The AICPA submits comments on the section 162(m) proposed regulations related to the limitation on employee remuneration
AICPA Comments on the Notice of Proposed Rulemaking Regarding Certain Employee Remuneration in Excess of $1,000,000 Under Internal Revenue Code Section 162(m) – [REG 122180-18]

July 29, 2020 - AICPA Comments on section 4968 
The AICPA is pleased to provide comments on the proposed regulations related to the determination of the section 4968 excise tax applicable to certain private colleges and universities. 

July 29, 2020 AICPA comments on Form 990 and Form 990-T 
The AICPA has provided comments on Form 990, Return of Organization Exempt from Income Tax, and the related instructions and Form 990-T, Exempt Organization Business Income Tax Return, and the related instructions to the IRS.

July 20, 2020 - AICPA Recommendations for Phase Four Federal Legislation Addressing COVID-19 (Coronavirus) Pandemic 
AICPA urged Congress to include in the next phase of federal coronavirus legislation recommendations to provide remote and mobile workforce relief, allow full deductions for Paycheck Protection Program (PPP) related business expenses, provide information and tools to simplify PPP loan forgiveness application process, allow section 501(c)(6) associations and organizations access to PPP, provide additional federal fiscal relief to state and local governments, and adopt new coronavirus-related liability provisions.

July 13, 2020AICPA Comments on Section 451 
The AICPA is pleased to submit our comments regarding new section 451(b), the taxable year of income inclusion under an accrual method of accounting, and new section 451(c), regarding advance payments

July 2, 2020AICPA Comments on IRS Tax Administrative Penalty Relief
The AICPA recommends that further tax administrative and penalty relief that is needed. As we approach the July 15 filing and payment deadline, many taxpayers and tax preparers continue to struggle to calculate and pay tax payments and prepare and file tax returns. 

June 24, 2020 - AICPA Comments of the Notice 2020-26, Extension of Time to File Application for Tentative Carryback Adjustment
The AICPA is submitting comments requesting an extension of time until October 31, 2020, to file an application for a tentative carryback adjustment as provided for in Notice 2020-26.

June 22, 2020 - AICPA Request for Additional Guidance and Relief Regarding Section 461(l) – Limitations on Excess Business Losses of Noncorporate Taxpayers
The AICPA submitted a comment letter requesting for additional guidance and relief regarding section 461(l). The recommendations address treatment of previously reported excess business losses and relief for underpayment of estimated taxes.

June 18, 2020AICPA Comments of support on federal Remote and Mobile Workforce Relief Act
AICPA submitted to Congress a letter of support for Senator Thune’s proposed federal legislation, S. 3995, the Remote and Mobile Workforce Relief Act. 

June 16, 2020AICPA Comments on SECURE and CARES Acts needed implementation guidance
Our letter provides recommendations on the following issues:
1. 2020 RMD waiver
2. 10-year rule
3. Other trust issues
4. Coronavirus-related distributions from an inherited IRA
5. Age of majority
6. Reporting requirements

June 16, 2020AICPA Comments on IRS Procedures for Section 6695A Penalty Case Reviews
AICPA submitted comments to IRS with concerns about the 1/22/20 IRS Memorandum that eliminated the previously existing multi-tiered review process set forth in Internal Revenue Manual (IRM) 20.1.12.7.4 for section 6695A penalty case reviews. We suggest that IRS return to the prior review process requiring at least two qualified knowledgeable IRS appraisers.

June 16, 2020 AICPA comments on IRS Proposed Regulations on Beneficiary’s Ability to Claim Excess Deductions Pursuant to Section 642(h)
AICPA submitted comments on IRS proposed regulations (REG-113295-18, published May 11, 2020) under sections 67(e), 67(g), and 642(h)(2) regarding TCJA changes to miscellaneous itemized deductions and the beneficiaries’ treatment of excess deductions of trusts and estates. Our comments address the provisions concerning excess deductions of a terminating trust or estate and supplement our previously submitted comments on this issue in response to Notice 2018-61.   

June 4, 2020 - AICPA Comments on the IRS Guidance for Electronic Signature Program
AICPA urgently requests that the IRS update its e-signature guidance and authentication requirements.

May 28, 2020 - AICPA Letter of Support for H.R. 6821, the Small Business Expense Protection Act of 2020
The AICPA submits a letter of support for H.R. 6821, legislation that clarifies the receipt and forgiveness of Coronavirus assistance through the Paycheck Protection Program (PPP) does not affect the deductibility of ordinary business expenses.

May 28, 2020 - AICPA Letter of Support for H.R. 6754, Protecting the Paycheck Protection Program of 2020
The AICPA submits a letter of support for H.R. 6754, legislation that clarifies the receipt and forgiveness of Coronavirus assistance through the Paycheck Protection Program (PPP) does not affect the deductibility of ordinary business expenses.

May 8, 2020 - AICPA Comments on FTC Proposed REGS-105495-19
The AICPA submitted comments on guidance related to the allocation and apportionment of deductions and foreign taxes, the definition of financial services income, foreign tax redeterminations under section 905(c), the disallowance of certain foreign tax credits under section 965(g) and the application of the foreign tax credit limitation to consolidated groups [REG-105495-19].

May 8, 2020AICPA Comments on Section 199A and Trust and Estate Indirect Expenses and Loss Allocations
AICPA submitted comments to IRS and Treasury on section 199A and trust and estate indirect expenses and loss allocations.

May 7, 2020AICPA Letter of Support for Modernizing Tax Provisions in Response to COVID-19
AICPA comments to the leadership of the Congressional tax-writing committees in support of modernizing certain tax provisions for small businesses and additional legislative actions in response to COVID-19.

May 6, 2020 - AICPA Letter of Support for S. 3612 Small Business Expense Protection Act of 2020
The AICPA submits a letter of support for S. 3612, legislation that clarifies the receipt and forgiveness of Coronavirus assistance through the Paycheck Protection Program (PPP) does not affect the deductibility of ordinary business expenses.

April 20, 2020 - AICPA Recommendations for Administrative and Filing and Payment Relief for State and Local Taxes during the Coronavirus Pandemic
AICPA developed and shared with state CPA societies a list of 11 recommendations for administrative and filing and payment relief for state and local taxes during the Coronavirus pandemic.

April 17, 2020 - AICPA Comments on Employee Retention Credit Provisions of the CARES Act
The AICPA requests additional guidance on the employee retention credit provisions of the CARES Act.

April 7, 2020 - AICPA Urges Treasury Secretary and IRS Commissioner for Filing Season Relief
The AICPA continues to request that Treasury and the IRS immediately expand tax-related relief due to COVID-19 to all types of returns and payments due between March 3 and July 15.

March 26, 2020 - AICPA Comment Letter for the Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic
The AICPA respectfully submits our comments on relief for taxpayers affected by the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. Specifically, we request that all Federal income tax, information returns, and payments originally due between March 3, 2020 and July 15, 2020 are granted additional time to file and pay until July 15, 2020.

March 19, 2020 - AICPA Letter of Support for Tax Filing Relief for America Act
The AICPA urges Congress to include the Tax Filing Relief for America Act recently introduced by Senator Thune in the Phase III stimulus bill. This is important legislation that will provide tax filing relief for taxpayers affected by the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. Tasks that are required of taxpayers (e.g., contributing to retirement plans and making elections) and those of tax preparers and taxpayers (e.g., determining taxable income and tax liability for a valid extension) should not be required prior to July 15, 2020. No income tax or other returns should be due before July 15, 2020.

March 11, 2020 - AICPA Comments on BEAT Regulations
The AICPA submits our comments on the notice of proposed rulemaking for additional rules regarding base erosion and anti-abuse tax (BEAT) [REG-112607-19] and final regulations [T.D. 9885]. Specifically, our recommendations address the change in the aggregate group, the election to waive deductions, the request for automatic relief on 2018 returns, and the application of qualified derivative payments (QDPs).

March 4, 2020AICPA Comments on Section 199A
The AICPA submits comments on two priority member issues regarding section 199A. Specifically, we recommend that Treasury and the IRS confirm that various self-employed deductions under sections 164(f), 162(l), and 404 are not automatically reductions of QBI, and update form instructions to reflect the same treatment for a charitable deduction under section 170.

March 2, 2020AICPA Comment Letter on The Freedom to Invest in Tomorrow’s Workforce Act (H.R. 5339)
The AICPA supports the bipartisan legislation, H.R. 5339, the Freedom to Invest in Tomorrow’s Workforce Act. This bill would expand eligible uses of 529 savings plans to include fees and expenses required to obtain or maintain a recognized postsecondary credential, including professional credentials and certifications. It is our understanding that this provision would allow individuals to use 529 funds for expenses, fees, and costs related to the Uniform CPA Examination, which is one of three critical components required for licensure as a CPA in the United States.

February 28, 2020 - AICPA Comments on IRS Virtual Currency Guidance
The AICPA submits our comments on Revenue Ruling 2019-24, the new question on Schedule 1 (Form 1040), and the Internal Revenue Service’s frequently asked questions on virtual currency transactions. Virtual currency transactions, in which taxpayers increasingly engage, add a new layer of complexity to the analysis of a client’s reporting requirements. The issuance of additional guidance will provide certainty and clarity to tax preparers and taxpayers on the application of the tax law to virtual currency transactions.

February 27, 2020AICPA Written Statement for Hearing on Wayfair Small Business Impact and AICPA Oral Testimony at the hearing
AICPA submitted the written statement and oral statement for the March 3, 2020 hearing of the House Small Business Committee Subcommittee on Economic Growth, Tax and Capital Access on the impact of the Wayfair decision on small businesses.

February 26, 2020 - AICPA Additional Comments on Proposed Regulations Concerning Eligible Terminated S Corporations under Section 1371(f) (REG–131071–18)
The AICPA is submitting additional comments pertaining to the proposed regulations under sections 1371(e) and (f) regarding the post-termination transition period (PTTP) provided for in those proposed regulations.

February 19, 2020AICPA Comments on Notice 2019-09
The AICPA has submitted recommendations on Notice 2019-09 - Interim Guidance on Excise Tax Imposed under Section 4960, Excess Remuneration.

January 30, 2020AICPA Recommendations for Taxpayer First Act – Tax Professionals’ Feedback
The AICPA has participated in a group of 10 stakeholder organizations to provide the IRS with recommendations as it prepares reports to Congress as mandated by the Taxpayer First Act. The letter outlines recommendations for providing taxpayers access to empowered IRS employees, timely information and tailored resources; placing greater emphasis on customer-focused employee training; and improving the technological and organizational infrastructure.

January 8, 2020 - AICPA Comments on Notice 2019-66 on At-Risk Activities Reporting for S Corporations
AICPA submitted comments to Treasury and the IRS on Notice 2019 and a request for similar section 465 at-risk activities reporting relief for S corporations as provided for partnerships.

Tax Policy & Advocacy letters, testimony and related documents for 2013201420152016, 2017, 2018 and 2019.