AICPA attention on tax reform continues as we await guidance from the IRS and Treasury on provisions of the Tax Cuts and Jobs Act including those with widespread effect on business clients. This includes the qualified business income deduction (Sec. 199A), fringe benefits, business meals, adopting favorable accounting methods for small businesses and more. Be on the watch for draft 2018 forms and instructions this summer which may provide some insights on the pending guidance.
AICPA volunteers and staff have also been devoting time to guidance needs on other tax matters. In May, letters were submitted dealing with the proposed regulations on the new partnership audit regime, Form 990 and the IRS informal “no-rule” policy on certain S corporation matters.
Volunteers serving on the Trust, Estate & Gift Tax Technical Resource Panel are helping the IRS test its transcript delivery system for Form 706. Activities for the volunteers serving on the State & Local Taxation Technical Resource Panel include waiting for the U.S. Supreme Court’s decision in South Dakota v. Wayfair, et al on the fate of the 1992 Quill decision. (See AICPA articles here and here.) They are also monitoring the Multistate Tax Commission’s work on a model statute for vendor reporting for use tax.
I had the opportunity in April to use one of my favorite AICPA documents — the AICPA Principles of Good Tax Policy. I was invited (on my behalf; not representing the AICPA) by the governor’s office to testify before the Texas Commission on Public School Finance which has a significant charge before it. I shared how the principles work to help ensure an effective tax system and applied them to some of the state’s tax rules. This is not the first time I have encouraged a tax commission to use the principles, having done so in California in the past. This document is a good resource should you have an opportunity to discuss tax policy with your state or local elected officials or any commission working on improving the jurisdiction’s tax and finance systems.
Please be sure to regularly check the AICPA Tax Reform Resource Center for new tools, short videos and comment letters. Also, be sure to mark your calendar for the next Washington Tax Brief webcast on June 6.
Annette Nellen, CPA, CGMA, Esq.
Tax Professor and Director of the MST Program at San José State University
Annette Nellen is the chair of the AICPA’s Tax Executive Committee and is an active member of the tax sections of the ABA and California State Bar. A recipient of the 2013 Arthur J. Dixon Memorial Award, the highest honor bestowed by the accounting profession in taxation, she is a frequent speaker and author on federal and state tax developments, tax policy and reform and taxation of the new economy.