Congress is considering a bill that would temporarily or permanently extend more than 50 provisions in the Internal Revenue Code, which are commonly referred to as the “tax extenders.” As defined on the website of the IRS, “federal tax law begins with the Internal Revenue Code.” The provisions either expired at the end […]
Congress is considering a bill that would temporarily or permanently extend more than 50 provisions in the Internal Revenue Code, which are commonly referred to as the “tax extenders.”
As defined on the website of the IRS, “federal tax law begins with the Internal Revenue Code.”
The provisions either expired at the end of 2014 or will expire at the end of this year, the American Institute of CPAs (AICPA) said in a news release issued on Oct. 2.
AICPA, headquartered in Washington, D.C., says it is the “world’s largest” member association representing the accounting profession, with more than 412,000 members in 144 countries, according to its website. AICPA members represent areas of practice that include business and industry, public practice, government, education, and consulting.
The organization wrote an Oct. 1 letter to the chairs and ranking members of the House Ways and Means and Senate Finance Committees.
In the letter, Troy Lewis, chair of the AICPA tax executive committee, wrote that even though lawmakers considered tax-extenders legislation earlier this year, the lack of approval to extend the provisions means the nation’s businesses and citizens are “still faced with uncertainty” in planning and compliance, according to the AICPA news release.
“Therefore, we strongly recommend that the House and Senate immediately address these provisions as soon as possible, albeit perhaps on a temporary basis, to avoid further distortions in financial reporting, prevent unnecessary delays in the tax filing season, and end the resulting needless uncertainty,” wrote Lewis.
Taxpayers and tax practitioners need “certainty” with the extenders to perform any long-term tax, cash-flow or financial planning and reporting, Lewis noted.
He also expressed concern about potential consequences if Congress does not act “as soon as possible,” according to AICPA.
They include the impact on a company’s financial accounting and reporting, along with the “increase in complexity and administrative burden” for taxpayers and the IRS.
The consequences also include the “adverse impact” on small businesses and, “ultimately,” jobs and growth; and the effect on economic decisions and tax payments.
Lewis also expressed concern about the “lack of transparency” that results from short-term, retroactive extensions.
