Below are comment letters submitted by the AICPA Tax Division in 2014.
Jan. 16, 2014 - AICPA Comments on SFC Chairman's Staff Discussion Draft on Tax Administration
The AICPA submitted a comment letter to Chairman Baucus and the Senate Committee on Finance on Thursday, Jan. 16, 2014 on the Tax Reform Discussion Draft on Tax Administration. The AICPA provided comments on topics for Reforms Relating to Information Returns, Reforms Relating to Identify Theft and Tax Fraud, Closing the Tax Gap, Expansion of Electronic Filing, Improvement to Tax Filing, and provided additional comments.
Feb. 25, 2014 - AICPA Comments on the Proposed Regulations under Section 263A Regarding Negative Additional Section 263A Costs
The AICPA submitted a comment letter to Associate Chief Counsel of the IRS, Mr. Andrew Keyso, on Tuesday, Feb. 25, 2014 on the Proposed Regulations under Section 263A Regarding Negative Additional Section 263A Costs. The AICPA provided comments on topics for Allowing Negative Amounts under the SPM, Exception for Small Taxpayers, Allow Taxpayers to Use the Proposed MSPM and to Estimate the Raw Material Content of WIP and Finished Goods, Revise the Proposed MSPM to Add a Post-Production Absorption Ratio, Rules for Property Produced Under Contract for the Taxpayer and Property Purchased for Resale by the Taxpayer, Allow Any Reasonable Method to Allocate Capitalizable Mixed Service Costs, MSPM for LIFO Inventory, and Extension of the Qualifying Period Under the MSPM with a HAR Election, HAR Transition Rules.
Feb. 26, 2014 - AICPA Schedule H De Minimis JV Comment Letter
The AICPA submitted a comment letter to the Commissioner of the Tax Exempt & Government Entities Division on Feb. 26, 2014 to provide recommendations for de minimis treatment of joint ventures for hospitals as reported by Schedule H, Part I, Line 7 of Form 990. Comments were related to the instructions to Form 990 when calculating the percentage that financial assistance and certain other community benefits represent as a percentage of total expenses.
Mar. 4, 2014 - Comments on Final Regulations Regarding Treasury Decision 9616: Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options; Reporting for Premium
During the 2013 filing season, our members and their clients experienced significant confusion from the implementation of cost basis reporting for stocks and mutual funds. We believe a further delay in reporting is necessary to reduce compliance burdens for individual taxpayers. This delay will provide additional time for third party reporting entities to change their programming and processes to comply with the regulations.
The letter proposes further extension of the effective dates in T.D. 9616 by one year each – moving the initial tracking of cost basis for options and debt instruments from January 1, 2014 to January 1, 2015, transfer reporting from January 1, 2015 to January 1, 2016 and reporting for complex debt instruments from January 1, 2017 to January 1, 2018.
March 18, 2014 - AICPA Comments on 501(c)(4) Proposed Regs (REG-134417-13)
The AICPA submitted a comment letter on 501(c)(4) Proposed Regs (REG-134417-13) on Tuesday, March 18, 2014 to The Honorable John A. Koskinen, Commissioner, Internal Revenue Service (IRS).
In this comment letter the AICPA applauds IRS on the initiation of the notice of public rulemaking (NPRM) project, REG-134417-13, to address the present law which applies a "facts and circumstances" test to finding political activity or intervention by social welfare organizations. However, are concerned about the possibility that newly proposed regulations are ambiguous, thus causing an increase in the reporting burden and cost of compliance for exempt organizations. The AICPA supports tax legislation and overall framework that promote simplicity, fairness, and the ease of compliance. We encourage the Dept. of Treasury to devleop a new simplified framework for the deifnition of "political activity" by section 501(c)(4) exempt entities, and all other section 501(c) qualified organizations.
March 27, 2014 - AICPA Comment Letter on Education HR 3393 AOTC
The AICPA comment letter details our support for certain provisions in H.R. 3393 and the education proposals of the Tax Reform Act of 2014. We also respectfully submit four specific AICPA recommendations to further provide for the simplification of higher education tax incentives.
March 31, 2014 - AICPA Provides Recommendations to IRS on NIIT and CRTs
The AICPA Trust, Estate, and Gift Tax Technical Resource Panel drafted and submitted comments to the IRS on March 31, 2014, regarding the 2013 net investment income tax (NIIT) proposed regulations and charitable remainder trusts (CRTs).
The AICPA recommends that with respect to trusts and estates, and in particular with respect to CRTs, the forthcoming final regulations under section 1411 address the following:
- Retain the elective simplified method (ESM) as an election for calculating the net investment income (NII) of a CRT and attributing the calculated NII to the beneficiary’s annuity or unitrust distribution.
- Provide rules on whether accumulated net investment income (ANII) of a CRT has any character, and we recommend that ANII of a CRT has no character.
- Provide examples that illustrate the ESM and its interplay with the rules of section 664(b).
- Change the reference to “information return” rather than “income tax return.”
- Provide that the ESM election is made on the tax return filed for the first taxable year beginning after the final regulations are issued.
April 9, 2014 - AICPA Proposes Legislation to Treat Estates in the Same Manner as Married Persons Filing Separately for Income Tax and the Net Investment Income Tax
The AICPA Trust, Estate, and Gift Tax Technical Resource Panel drafted and submitted a legislative proposal to Congress on April 9, 2014, regarding treating estates and certain qualified revocable trusts and qualified disability trusts in the same manner as married persons filing separately. This proposal highlights the excessive tax burden placed on estates compared with the tax burden that the decedent had during his or her life, as well as provides a solution to these inequalities.