2022 Tax Policy & Advocacy Comment Letters
December 23, 2022 - AICPA Press Release on AICPA Encouraged by IRS Decision to Delay 1099-K $600 Threshold Implementation, Urges Further Consideration to Raise Threshold
AICPA encourages Congress to raise Form 1099-K reporting threshold from $600 to $5,000 to avoid the significant administrative burden that a very low reporting threshold would cause for both taxpayers and tax professionals.
December 22, 2022 - AICPA Comments on Notice 2022-53 Related to Certain Required Minimum Distributions for 2021 and 2022
AICPA submits comments in response to Notice 2022-53 related to certain 2021 and 2022 RMDs.
December 20, 2022 - AICPA Comments on Notice 2022-50, Request for Comments on Elective Payment of Applicable Credits and Transfer of Certain Credits
The AICPA submitted comments regarding Notice 2022-50 pertaining to sections 6417 and 6418 created by the Inflation Reduction Act (IRA). Recommendations call for guidance which promotes effective use of the Elective Payment of Applicable Credits and Transfer of Certain Credit provisions.
December 16, 2022 - AICPA Comments on IRS Draft Instructions to 2022 Form 1040 Pertaining to Digital Assets
AICPA submitted comments on IRS draft instructions to the 2022 Form 1040 pertaining to digital assets.
December 16, 2022 - AICPA Comments on Suggested Updates to Form 1041 to Facilitate Electronic Filing, Foreign Tax Credits and Passive Foreign Investment Companies
AICPA submitted comments to Treasury and IRS on suggested updates to Form 1041 to facilitate electronic filing, foreign tax credits and passive foreign investment companies.
December 16, 2022 - AICPA Comments on Form 1099-K Reporting Threshold
The AICPA has deep concerns regarding the Form 1099-K, Payment Card and Third Party Network Transactions, reporting threshold that was lowered to $600 for 2022 and will lead to significant confusion in the tax system in the next several months.
November 30, 2022 - AICPA Comments on Schedule K-2 and Schedule K-3 2022 Draft Instructions
The AICPA is pleased to submit written comments to the IRS and Treasury on the guidance included in the draft instructions recently issued for tax year 2022 Schedules K-2 and K-3. In the letter, the AICPA has identified important issues and provides recommendations to facilitate taxpayer compliance for filing Schedules K-2 and K3, including specific suggestions on the domestic filing exception.
November 30, 2022 - AICPA Comment Letter Recommending Relief for Form 990-PF Disclosure Requirements
The AICPA submitted comments requesting relief for specific Form 990-PF filing requirements. In the letter, the AICPA recommends modifications in the reporting requirements to protect the privacy of grant recipients and streamline the disclosure of investment information by private foundations.
November 18, 2022 - AICPA Comments on Draft Updated Schedule UTP
AICPA submitted to IRS comments to reconsider amending Schedule UTP in light of the significant burden the draft Schedule UTP places on taxpayers and practitioners.
November 14, 2022 - AICPA Comments Regarding Partnership Continuations
AICPA submitted to IRS and Treasury comments pertaining to partnership continuations. The comments include providing a checkbox on Form 1065 to identify a continuing partnership, as well as providing EIN options to partnerships treated as continuing under section 708. The goal of these recommendations is to provide transparency when a continuation takes place, and to allow continuing partnerships to use the EIN which results in the least administrative burden.
October 28, 2022 - AICPA Suggestions on Form 1065, U.S. Return of Partnership Income, Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., and Related Instructions
AICPA submitted to IRS and Treasury comments with suggestions on Form 1065, U.S. Return of Partnership Income and Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., and related instructions. The suggestions include providing a consistent definition of “Net Income (Loss)”, clarifying the definition of an activity under section 465 (the “at-risk” loss limitation rules), providing a safe harbor aggregation methodology for section 465 activities, and several miscellaneous clarifications.
October 28, 2022 - AICPA Comments on Virtual Currency Reporting under Internal Revenue Code Section 6045 and Section 6050I, Form 8300 and Instructions
AICPA submitted comments to the Internal Revenue Service requesting guidance for virtual currency transactions under sections 6045 & 6050I. Specific guidance is requested for clear definitions of “virtual currency” and “digital assets”, information reporting requirements by brokers, and reporting requirements of IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.
October 18, 2022 - AICPA Recommendations for the Electronic Dissemination of S Corporation Schedules K-1 to Shareholders
AICPA submitted to IRS and Treasury a request to provide for the electronic dissemination of S corporation Schedules K-1 to shareholders. Revenue Procedure 2012-17 granted this ability to partnerships, while S corporations have not yet been extended the same permission.
October 14, 2022 - AICPA Comments on the Corporate Alternative Minimum Tax Needed Immediate Guidance
AICPA submitted to IRS and Treasury comments on needed immediate guidance on the recently enacted corporate alternative minimum tax.
October 4, 2022 - AICPA Comment Letter on SALT Deduction PTET Timing Issues
AICPA submitted comments on the deductibility of payments by accrual basis partnerships and S Corporations for specific state and local income taxes.
September 23, 2022 - AICPA Comments on Section 2053 Proposed Regulations
AICPA submitted comments on proposed regulations (REG-1390975-08) guidance under section 2053 regarding the deduction for interest expense and amounts paid under a personal guarantee, certain substantiation requirements, and applicability of present value concepts.
September 21, 2022 - AICPA Comments on Section 41 Research Credit Refund Claims
The AICPA has outlined concerns related to the significant changes the IRS announced in IR-2021-2021 and the accompanying Field Attorney Advice memorandum that were issued on October 15, 2021, which outline the IRS’s new requirements to treat a refund claim for research credits as valid.
September 16, 2022 - AICPA Letter of Support for CA SB 851 Pass-Through Entity Tax Other State Tax Credit Modification Legislation
AICPA submitted to California Governor Newsom a letter supporting Senate Bill 851 ("SB 851") and encouraging him to sign SB 851 into law. This bill, which has significant implications for taxpayers across the country, makes an important modification to California’s elective pass-through entity tax (PTET) framework. SB 851 makes the necessary technical modifications so that the PTET can be appropriately factored into the Other State Tax Credit (OSTC) calculation as was initially intended.
September 13, 2022 - AICPA Suggestions for Improvements to Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Instructions
AICPA submitted to IRS and Treasury comments on suggestions for improvements to the Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and instructions, as well as guidance and regulations updates if Treasury and IRS find that the issues are beyond changes to the form and instructions.
September 13, 2022 - AICPA Comments on Form 706-GS(T)
AICPA submitted to IRS and Treasury comments in response to the request for comment in OMB Number 1545-1145-Generation-Skipping Transfer Tax Return (dated 7/15/22), providing examples and recommendations for improvements to the Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, and instructions and extensions, as well as guidance and regulations updates if Treasury and IRS find that the issues are beyond changes to the form and instructions.
September 12, 2022 - AICPA Comments on the MTC Investment Partnership Model Act
AICPA submitted to the Multistate Tax Commission (MTC) comments on the MTC draft model act on the treatment of investment partnership income.
September 8, 2022 - AICPA Comment Letter on Notice 2022-36 Penalty Relief Scope and Years
AICPA submitted to Treasury and IRS a comment letter on Notice 2022-36 penalty relief expanded scope and years. Although we appreciate the relief provided, we have serious concerns about the deadline provided and the scope of relief provided in Notice 2022-36. This letter is in addition to our August 30, 2022 letter, requesting extension of the September 30, 2022 deadline to December 31, 2022.
September 1, 2022 - AICPA Request for Guidance Related to Changes to Section 162(m) made by the American Rescue Plan Act of 2021
The AICPA requests that Treasury and the IRS prioritize the issuance of guidance in relation to changes made to section 162(m) by the American Rescue Plan Act of 2021.
August 31, 2022 - AICPA Urgent Request for Immediate Guidance Regarding New International Reporting Requirements, Schedule K-2 and Schedule K-3 for Tax Year 2021
The AICPA identifies specific issues that practitioners are facing in completing the new Schedule K-2 and Schedule K-3 and urges the IRS to provide immediate guidance that is critical for taxpayers to meet critical filing requirements for the 2021 tax year and beyond. Our submission goes into detail regarding our concerns and provides recommendations to facilitate taxpayer compliance for filing Schedules K-2 and K-3 during the current filing season.
August 30, 2022 - AICPA Comments on Notice 2022-36 Request for Deadline Extension
AICPA submitted to IRS and Treasury comments on Notice 2022-36 request for deadline extension from September 30, 2022 to December 31, 2022. This letter expresses our appreciation for the relief provided and our concern regarding the filing deadline provided in Notice 2022-36.
August 29, 2022 - AICPA Comments on Virtual Currency Question on the Form 1040 and Instructions
AICPA submitted to IRS comments on the virtual currency question on the Form 1040 and instructions. We hope that the virtual currency question can be clarified before the 2022 forms are finalized.
August 25, 2022 - AICPA Submit Comments Requesting for Guidance in Key Areas Related to Employees Working Remotely
Today, many employees work entirely or primarily from a residence, rather than an employer-provided work location. In many instances, existing tax guidance does not apply to today’s work arrangements to determine when expenses are deductible travel expenses and when they are non-deductible commuting expenses. The attached comments request updated guidance and offer recommendations regarding ways in which the guidance can be drafted to accommodate the new work environment.
August 9, 2022 - AICPA Comments Regarding the Practitioner Priority Service (PPS) Line
AICPA comments on the specific PPS line challenges tax practitioners are experiencing and suggestions for improving the experience for tax practitioners and IRS customer service representatives (CSRs) are in the following areas:
- Power of Attorney (POA) Issues
- Accounts Management (AM) versus Automated Collection (ACS)
- General Recommendations
August 4, 2022 - AICPA Comments on Tax Provisions in Senate Reconciliation Legislation Released on July 27, 2022
AICPA submitted comments regarding important profession and tax policy issues that are in the Senate reconciliation legislation – the Inflation Reduction Act of 2022 - released on July 27, 2022. Specifically, the AICPA is commenting on the following issues:
1. Sec. 10101. Corporate Alternative Minimum Tax.
2. Sec. 10201. Modification of Rules for Partnership Interests Held in Connection with the Performance of Services.
3. Sec. 10301. Enhancement of Internal Revenue Service Resources.
July 28, 2022 - AICPA Comments on Trust and Estate Related Tax Proposals in the Fiscal Year 2023 Treasury Green Book
AICPA submitted to Congress comments on several trust and estate related tax proposals in the Department of the Treasury’s General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals (“Green Book”), issued March 2022. Specifically, the comments address the following Green Book proposals:
- Strengthen taxation of high-income taxpayers: Reform the taxation of capital income: Treat transfers of appreciated property by gift or on death as realization events (Page 34 of Green Book);
- Modify estate and gift taxation: Modify income, estate, and gift tax rules for certain grantor trusts (Page 40 of Green Book);
- Modify estate and gift taxation: Improve tax administration for trusts and decedents’ estates: Reporting of estimated total value of trust assets (Page 45 of Green Book);
- Improve tax administration and compliance: Enhance accuracy of tax information: Electronic filing of forms and returns (Page 70 of Green Book); and
- General comments on estates
July 27, 2022 - AICPA letter of appreciation for IRS Rev. Proc. 2022-32
AICPA submitted to IRS and Treasury a letter expressing appreciation for IRS Revenue Procedure 2022-32, which provides an updated simplified method for obtaining an extension of time under Treas. Reg.1 § 301.9100-3 (“9100 relief”) to make a portability election of the deceased spousal unused exclusion amount for estate and gift tax purposes.
July 21, 2022 - AICPA Comment Letter on Rev. Proc. 2015-13
The AICPA is pleased to submit comments with respect to the accounting method change procedures set forth in Rev. Proc. 2015-13.
July 20, 2022 - AICPA Letter to Congress Supporting Bipartisan Disaster Relief Provision to Include in Final Retirement Bill
AICPA submitted a letter to Congress supporting a bipartisan disaster relief provision for Congress to include in the final retirement bill. The provision, which would not impose full immediate taxation on victims of a disaster event who withdraw up to $22,000 from a qualified plan or individual retirement account (IRA) and repay the amount within three years, has been included in the Senate Finance Committee’s bipartisan retirement package, the Enhancing American Retirement Now (EARN) Act.
July 11,2022 - AICPA Comments on Additional Measures to Address Backlog
The AICPA submitted comments on the IRS backlog with recommendations.
July 1, 2022 - Proposed Regulations Related to Required Minimum Distributions [REG-105954-20]
AICPA submits comments on the proposed regulations on required minimum distributions. Specifically, we question the IRS’s position on the treatment of RMDs for designated beneficiaries of employees and IRA owners who die after the required beginning date as we do not believe the treatment in the proposed regulations is reflective of the intent of the statute.
June 28, 2022 - AICPA Comments on Proposed Regulations Regarding Passive Foreign Investment Companies & Controlled Foreign Corporations Held by Partnerships & Subchapter S Corporations (REG–118250–20)
The AICPA submitted written comments on the Proposed Regulations published on January 25, 2022, regarding Passive Foreign Investment Companies (PFICs). The AICPA recommends that the current treatment of domestic partnerships and S corporations as shareholders for purposes of PFIC compliance filings and their related elections be retained.
June 27, 2022 - AICPA Written Statement for the Record of Senate Committee on Finance 6/14/22 Hearing on Wayfair Remote Sales Tax Issues
AICPA submitted a written statement for the record of the 6/14/22 Senate Committee on Finance hearing on “Examining the Impact of South Dakota v. Wayfair on Small Businesses and Remote Sales.” Our written statement focuses on what the U.S. Supreme Court specifically determined in Wayfair, the states’ reaction to the case, and how small businesses are affected. We also provided recommendations for Congress to assist in its consideration of whether federal legislation should address these pressing issues. AICPA previously testified on this issue at the March 3, 2020 hearing of the House Committee on Small Business Subcommittee on Economic Growth, Tax and Capital Access on the impact of the Wayfair decision on small businesses.
June 22, 2022 - AICPA Comments on Section 263A Regulations
The AICPA is pleased to comment on Section 263A. The letter is in response to the final 2018 regulations that address the allocation of direct and certain indirect costs to property produced or acquired for resale by a taxpayer.
June 22, 2022 - AICPA Request to Multistate Tax Commission (MTC) for Extended Comment Period for MTC State Model Act on Investment Partnerships
AICPA requested MTC provide a longer comment period on the June 8, 2022 MTC draft model act on treatment of investment partnership income, which was developed as part of the MTC’s Project on State Taxation of Partnerships.
June 21, 2022 - AICPA Comments on the Corporate Profits Minimum Tax in Reconciliation Legislation Being Considered
The AICPA recommends that Congress reconsider and clarify the rules associated with the proposal regarding implementing a minimum tax on corporate adjusted financial statement income due to complexity and because it may have many significant and potentially negative implications.
June 14, 2022 - AICPA Comments on Individual Retirement Account (IRA) and Trust and Estate Issues with the Required Minimum Distribution (RMD) Requirements and SECURE Proposed Regulations (REG-105954-20)
AICPA submitted comments on the SECURE Act RMD proposed regulations trust and estate tax issues, including regarding: age of majority; trust as beneficiary definitions and provisions related to see-through trusts, conduit trusts and accumulation trusts; disability definition; required minimum distributions (RMDs); marital trust with surviving spouse as beneficiary; eligible designated beneficiary (EDB) older than the decedent, and beginning date and ending date; and 10-year rule, and an Individual Retirement Account (IRA) beneficiary trust receiving RMDs before 2020.
June 2, 2022 - Comments on Form 990, Return of Organization Exempt from Income Tax, Form 990-T, Exempt Organization Business Income Tax Return, and Form 990-PF, Return of Private Foundation, and Related Instructions
The AICPA is pleased to comment on Form 990, Form 990-T and Form 990-PF. In the current year the format is more streamlined and the letter also includes two additional comment sections on Announcement 2021-18 and other e-filing initiatives.
May 26, 2022 - AICPA Comment Letter Research & Experimental Expenditures under section 174
The AICPA is pleased to comment on research and experimental expenditures under section 174, including the identification of categories of section 174(a) expenditures and issues that have arisen with regard to Rev. Proc. 2000-50.
May 25, 2022 - AICPA Releases Letter Calling for IRS FY2023 Funding at Levels to Allow it to Handle All Duties Required by Congress
The AICPA respectfully requests that Congress fund the Internal Revenue Service at necessary levels to allow it to handle all the duties required of it by Congress, including properly administering and enforcing our nation’s tax laws as well as providing needed assistance to taxpayers and their advisers in a timely and professional manner.
May 24, 2022 - AICPA Comments on 2022-2023 IRS Priority Guidance Plan
AICPA submitted to IRS comments on the 2022-2023 IRS Priority Guidance Plan, listing suggested and needed guidance.
May 13, 2022 - AICPA comments on the Destruction of Tax Documents by the IRS
AICPA issued a statement that it is deeply troubled by the IRS’ destruction of over 30 million paper filed informational returns. AICPA urged the IRS to be transparent in its remediation efforts and to consider specific recommendations to help reduce their backlog.
May 3, 2022 - AICPA Releases Letter Announcing Endorsement of Bipartisan, Bicameral Supply Chain Disruptions Relief Act
The AICPA supports efforts by Congress to provide tax relief to businesses that have been unable to maintain inventory during the pandemic. The AICPA announces its endorsement of the bipartisan Supply Chain Disruptions Relief Act, sponsored in the House by Representatives Dan Kildee (D-MI) and Jodey Arrington (R-TX) and also in the Senate by Sherrod Brown (D-OH).
April 14, 2022 - AICPA Comments on Section 41 Research Credit Refund Claims
The AICPA has concerns about the new requirements for collection of information to obtain a valid refund claim for research credits. These requirements should be paused until the IRS obtains approval from OMB for the collection of information.
April 14, 2022 - AICPA Comment Letter of Support for Supply Chain Disruptions Act
The AICPA supports efforts by Congress to provide tax relief to businesses that have been unable to maintain inventory during the pandemic. The AICPA announces its endorsement of the bipartisan Supply Chain Disruptions Relief Act, sponsored in the House by Representatives Dan Kildee (D-MI) and Jodey Arrington (R-TX).
March 1, 2022 - AICPA Comments on Treatment of Disregarded Payments for Dual Consolidated Loss Rules under Section 1503(d)
The AICPA appreciates the opportunity to provide comments regarding a topic that we understand is under active consideration by the government, regarding the treatment of disregarded payments for purposes of the dual consolidated loss rules set forth in section 1503(d) and the related regulations.
March 1, 2022 - AICPA Notice Proposing Revenue Procedure Updating Group Exemption Letter Program (Notice 2020-36)
The AICPA is pleased to comment on Notice 2020-36, which contains a proposed revenue procedure updating the group exemption letter program.
February 24, 2022 - Concerns Regarding Schedules K-2 and K-3 Reporting
AICPA and state CPA societies call on Treasury and the IRS to delay implementation of the Schedule K-2 and K-3 to 2023 and to suspend any assessment of penalties against Partnerships of S Corporations for failing to file or failing to timely provide Schedules K-2 and K-3 for the 2021 tax year.
February 18, 2022 - AICPA Additional Comments Regarding Schedule K-2 and Schedule K-3
The AICPA submitted additional comments regarding Schedules K-2 and K-3 and also specifically addressing the IRS transition relief provided for on February 16, 2022. The AICPA recommended that the IRS delay implementation of the Schedules until 2023 and significant penalty relief for the 2022 tax filing season (2021 tax years).
February 18, 2022 - The Association of International Certified Professional Accountants comments on the Public Consultation Document – Pillar One – Amount A: Draft Model Rules for Nexus and Revenue Sourcing
The Association of International Certified Professional Accountants (“Association”) submitted comments on public consultation document Pillar One – Amount A: Draft Model Rules for Nexus and Revenue Sourcing. We continue to recommend our framework for a consensus-based, equitable, and successfully durable rebalancing of multijurisdictional taxing rights.
February 17, 2022 – AICPA Oral and Written Testimony at Senate Finance Committee hearing on Spotlighting IRS Customer Service Challenges
AICPA Tax Executive Committee chair, Jan Lewis testified on February 17, 2022, at the Senate Finance Committee on the hearing on Spotlighting IRS Customer Service Challenges.
February 16, 2022 - Coalition Response to Feb 8 Oversight Subcommittee Hearing on Challenges Facing Taxpayers
A Coalition for taxpayer relief urges the Oversight Subcommittee to continue to work with the IRS toward a meaningful resolution to the host of issues that have been raised by taxpayers and advocates.
February 10, 2022 - AICPA Encouraged by IRS Announcement, Continues to Urge Further Action
AICPA issued a statement that it is encouraged by the welcome step of the IRS suspending more automated notices during the processing backlog. AICPA urged consideration of additional recommendations for relief.
February 9, 2022 - AICPA Comment Letter on Deferral of Live Event Advance Payments Affected by COVID
The AICPA requests additional guidance as it applies to prepayments received by taxpayers for live events, shows or other productions that were canceled or deferred due to COVID-19.
February 4, 2022 - AICPA Comments on Proposed FinCEN Beneficial Ownership Reporting Requirements under the Corporate Transparency Act
The AICPA submitted comments to the Financial Crimes Enforcement Network (FinCEN) urging them to carefully consider the burden and cost imposed by proposed beneficial ownership information (BOI) reporting requirements affecting estimated 25 million small businesses, including small CPA firms. The AICPA encourages FinCEN to exempt all CPA firms from the reporting requirements and consider recommendations to clarify broad definitions and better align BOI reporting requirements to ease the compliance burden for small businesses.
February 3, 2022 - AICPA Statement on IRS Plans to Reassign Staff to Address Backlog
AICPA issued a statement that the recent actions taken by the IRS to suspend a notice and the press reports that they are considering additional steps – including shifting personnel to service centers – are positive steps in the right direction. AICPA urged the Service to move as quickly as possible to offer reasonable measures of relief.
January 28, 2022- AICPA Additional Comments Regarding Effective Dates in Build Back Better (BBB) Act
The American Institute of CPAs (AICPA) is pleased to submit additional comments regarding the potential impact of retroactive effective dates under the proposed tax provisions in H.R. 5376 (“Build Back Better Act” or “BBB”).
January 27, 2022 – AICPA Statement on Recent IRS Announcement: ‘We Believe That There Is More They Can Do’
AICPA stated that after the coalition letter and media briefing and Congressional letter the IRS announcement of its intention to stop some notices to taxpayers as they increase resources to process backlogged files is a positive first step, but AICPA believes that more should be and could be done by the IRS, without the need for congressional action, to reduce erroneous automated notices and unnecessary taxpayer contact with the Service.
January 27, 2022 – Taxpayer Advocate Coalition Statement on IRS Actions Offering Limited Taxpayer Relief (Coalition statement)
The Tax Professionals United for Taxpayer Relief coalition released a statement in response to a recent announcement by the Internal Revenue Service (IRS) to suspend “some notices to taxpayers” for the upcoming tax filing season. This is a good first step in offering relief to taxpayers, but more is needed and IRS should implement all of our recommendations.
January 24, 2022 – Diverse Coalition of Stakeholders Media Briefing on IRS Service Issues (Coalition briefing)
The Tax Professionals United for Taxpayer Relief Coalition held a virtual media briefing to discuss IRS service issues that have caused unnecessary stress and anxiety for taxpayers throughout the COVID-19 pandemic.
January 14, 2022- Relief for Taxpayers for the 2022 Filing Season (Coalition letter)
The Coronavirus pandemic has created enormous challenges for taxpayers, tax professionals and the IRS. Implementing reasonable penalty relief measures, that the IRS can offer immediately, are necessary to help not only taxpayers and tax professionals but also the IRS during these challenging times.
January 10, 2022 - AICPA Statement on AICPA Calls on IRS to ‘Do More’ – Pushes for Action on Relief for Taxpayers
AICPA has recommended to the IRS that they take reasonable actions that would meaningfully reduce persistent, unnecessary and erroneous notifications and help American taxpayers.”
Tax Policy & Advocacy letters, testimony and related documents for 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2023.