The AICPA has been working with Representatives Joseph Crowley (D-N.Y.) and Jim Ramstad (R-Minn.), who introduced H.R. 4318 on December 6, 2007, to equalize the tax return reporting standard for taxpayers and return preparers at the level of “substantial authority” for non-tax shelter items.
H.R. 4318 would correct the problem caused by a provision enacted earlier this year which increased the tax return reporting standard for tax preparers to “more likely than not” (MLTN). The MLTN standard, in effect, requires taxpayers using return preparers to satisfy a higher standard than unassisted taxpayers, thereby potentially causing friction between CPAs and clients. Also, the higher MLTN standard adds complexity and cost to return preparation.
We need to build momentum for this correction and generate significant support on Capitol Hill. Please email your Representative and ask him or her to contact Rep. Crowley or Rep. Ramstad to sign on as co-sponsors of H.R. 4318.
For further information on contacting representatives on the House Ways and Means Committee, click here.