The American Institute of CPAs regularly rounds out an annual meeting in Washington, DC, by sending groups to lobby federal lawmakers. In 2013, federal tax reform was high on the AICPA's agenda. The growing complexity of federal tax law, burdens on those paying taxes, and the system failures associated with fiscal-cliff legislation are just some of the issues the AICPA brought up in talking points to congressional leaders.
The AICPA is supporting a number of proposals from representatives regarding federal tax reform. The group of professional accountants obviously wants to make it easier to handle tax paperwork because that would bolster accounting-business profits. At the same time, the group is interested in making tax laws fair for clients, reducing penalties by making it easier to file taxes on time, and establishing standards in certain tax-collection areas.
One of the efforts the AICPA is supporting is an act to simplify tax return due-date processes. Introduced by Senator Mike Enzi and Representative Lynn Jenkins, the bill would attempt to implement improvements to federal tax administration. Specific improvements would include detailed publication of form due dates and promote more efficient and appropriate information flow with regard to filings. The AICPA and those championing the federal tax reform bill hope that the improvements make it easier for CPAs and others to meet filing deadlines when Schedule K-1 arrival is late.
Another federal tax reform supported by the AICPA is an act that would establish national standards regarding state taxes associated with nonresident income. Professional accounting groups are interested in the simplification as it would benefit accountants and their clients, but the bill hasn't yet passed because lawmakers are finding it hard to balance the rights of states with the needs of expanding businesses. The AICPA faces a similar balancing issue with regard to financial security. The organization supports an act that would exempt CPAs from a rule requiring them to register with the SEC if they work for or with certain entities. The rule, which was imposed by the Dodd-Frank Act, was implemented to reduce financial fraud and abuse. According to the AICPA and others, an unintended consequence is that some qualified CPAs are limited in what they can do for certain clients.
The AICPA's fight for federal tax reform takes place outside lobbying sessions as well. In a recent letter to the IRS, the AICPA recommended numerous changes to the government's proposed net income tax regulations. Among the AICPA's talking points were requests for simplification and suggestions for keeping the new regulations in line with existing tax code.
As an organization of professional accountants, the AICPA is in a good position to suggest changes regarding federal tax reform. Though the organization is often concerned with making the work of CPAs easier, it must also pay attention to the needs of those paying taxes. By working toward tax reform, the AICPA helps accountants do better jobs, reduce their workloads, and make clients happier.
(Photo courtesy of Arvind Balaraman / freedigitalphotos.net)
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