September 20, 2019

This Year’s AICPA Council Issues Are (Mostly) All About Taxes

Let’s all keep in mind here that the repeal of burdensome 1099 rules buried in the Affordable Care Act of 2010 (or “Obamacare” for my fellow right-wing nutjobs out there) can be directly traced to efforts by the AICPA and its members, including a few angry letters sent by the AICPA to Congress. It’s a perfect example of legislative action at work, for those of you out there with little faith in the process.

Here are this year’s key issues:

Tax Strategy Patents S 139 The Equal Access of 2011
The bill would stop the granting of patents for tax strategies. Which basically means your next door cube-dweller won’t be able to patent his favorite spreadsheet.

Tax Due Dates S 845 Tax Return Due Date Simplification and Modernization Act of 2011
This bill would amend the Internal Revenue Code of 1986 to provide for the logical flow of return information between partnerships, corporations, trusts, estates, and individuals to better enable each party to submit timely, accurate returns and reduce the need for extended and amended returns, to provide for modified due dates by regulation, and to conform the automatic corporate extension period to longstanding regulatory rule. The short version: it seeks to change the dates on which tax returns are due to a more sensible pattern.

Simplification of the tax code
The AICPA has a long history of advocating sound tax policy; this year, it’s all about simplifying the tax code, starting with the repeal of AMT and consolidating education provisions.

Workforce Mobility HR 1864 Mobile Workforce State Income Tax Simplification Act of 2011
Unlike previous mobility initiatives, this one would limit the authority of states to tax certain income of employees in other states. Thanks to the Internet, many companies are able to staff employees around the country, some of which only do a few hours of work a month. That means the company must register and withhold state taxes for these employees in each state.

“Our tax laws are a vital component of the economic health of our nation as evidenced by the discussion in Washington about tax reform,” Barry Melancon, president and CEO of the AICPA, said. “We think it’s important for members of Congress to talk taxes with CPAs as they consider changes to the law. CPAs can provide objective advice, based on real-world experience.”

The goal of Congressional visits is to exchange information with our Congressional members on legislative issues of concern to CPAs (and, directly related to CPAs’ concerns, those of their clients) and to garner support for the profession’s position on these issues, as well as to position CPAs as resources and thought leaders. To call it lobbying would be a misnomer as lobbying would imply a one-way relationship, beneficial only to the special interest doing the lobbying. So don’t even go there; we’re talking about providing professional analysis, opinion and expertise in exchange for a voice in legislation that could potentially impact hundreds of thousands of CPAs and CPA firms around the country.

For the CPAs on the Hill yesterday, they not only presented their issues but offered themselves as experts in areas many Congressional offices are unfamiliar with. Tweaking the tax code is a delicate issue, and one that shouldn’t be approached without expert analysis of any proposed legislation. This is where the two-way street comes in, and another reason why these visits are important for all involved parties.

We’ll update later with specifics on the day we spent meeting Maryland Congressional members with the MACPA Council and Executive Committee, including former MACPA Chair and amazing storyteller Larry Kamanitz, who made 60 cents an hour when he first got into public. Stay tuned!

Let’s all keep in mind here that the repeal of burdensome 1099 rules buried in the Affordable Care Act of 2010 (or “Obamacare” for my fellow right-wing nutjobs out there) can be directly traced to efforts by the AICPA and its members, including a few angry letters sent by the AICPA to Congress. It’s a perfect example of legislative action at work, for those of you out there with little faith in the process.

Here are this year’s key issues:

Tax Strategy Patents S 139 The Equal Access to Tax Planning Act of 2011
The bill would stop the granting of patents for tax strategies. Which basically means your next door cube-dweller won’t be able to patent his favorite spreadsheet.

Tax Due Dates S 845 Tax Return Due Date Simplification and Modernization Act of 2011
This bill would amend the Internal Revenue Code of 1986 to provide for the logical flow of return information between partnerships, corporations, trusts, estates, and individuals to better enable each party to submit timely, accurate returns and reduce the need for extended and amended returns, to provide for modified due dates by regulation, and to conform the automatic corporate extension period to longstanding regulatory rule. The short version: it seeks to change the dates on which tax returns are due to a more sensible pattern.

Simplification of the tax code
The AICPA has a long history of advocating sound tax policy; this year, it’s all about simplifying the tax code, starting with the repeal of AMT and consolidating education provisions.

Workforce Mobility HR 1864 Mobile Workforce State Income Tax Simplification Act of 2011
Unlike previous mobility initiatives, this one would limit the authority of states to tax certain income of employees in other states. Thanks to the Internet, many companies are able to staff employees around the country, some of which only do a few hours of work a month. That means the company must register and withhold state taxes for these employees in each state.

“Our tax laws are a vital component of the economic health of our nation as evidenced by the discussion in Washington about tax reform,” Barry Melancon, president and CEO of the AICPA, said. “We think it’s important for members of Congress to talk taxes with CPAs as they consider changes to the law. CPAs can provide objective advice, based on real-world experience.”

The goal of Congressional visits is to exchange information with our Congressional members on legislative issues of concern to CPAs (and, directly related to CPAs’ concerns, those of their clients) and to garner support for the profession’s position on these issues, as well as to position CPAs as resources and thought leaders. To call it lobbying would be a misnomer as lobbying would imply a one-way relationship, beneficial only to the special interest doing the lobbying. So don’t even go there; we’re talking about providing professional analysis, opinion and expertise in exchange for a voice in legislation that could potentially impact hundreds of thousands of CPAs and CPA firms around the country.

For the CPAs on the Hill yesterday, they not only presented their issues but offered themselves as experts in areas many Congressional offices are unfamiliar with. Tweaking the tax code is a delicate issue, and one that shouldn’t be approached without expert analysis of any proposed legislation. This is where the two-way street comes in, and another reason why these visits are important for all involved parties.

We’ll update later with specifics on the day we spent meeting Maryland Congressional members with the MACPA Council and Executive Committee, including former MACPA Chair and amazing storyteller Larry Kamanitz, who made 60 cents an hour when he first got into public. Stay tuned!

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