In a letter sent on Monday to the Congress by AICPA, the congress was urged to address immediately the 57 tax provisions that expired at the end of 2013 and the 6 tax provisions that expire at the end of 2014, as they could complicate the next tax season for practitioners. Although Congress began considering the legislation extensions earlier this year, AICPA stressed the uncertainty that the American individuals and businesses are still facing in planning and compliance as the 4th Quarter is fast approaching.
House and Senate action on the tax extenders is necessary as soon as possible “to avoid further distortions in financial reporting, prevent unnecessary delays in the tax filing season, and end all of the needless uncertainty,” said the letter from AICPA Tax Executive Committee chair Jeffrey A. Porter to House Ways and Means Committee chairman Dave Camp, R-Mich., Senate Finance Committee chairman Ron Wyden, D-Ore., House Ways and Means Committee ranking member Sander Levin, D-Mich., and Senate Finance Committee ranking member Orrin Hatch, R-Utah.
In the letter sent to House Ways and Means Committee and Senate Finance committee chairmen and ranking members, AICPA Tax Executive Committee chair Jeffrey A. Porter said that the there is a necessity for the House and senate to take an immediate action on the tax extenders in order to avoid unnecessary delays and further distortions in financial reporting.
Legislation might be delayed until after November:
Despite the push from the House and the Senate for action on the tax extenders, the legislation is not expected to be taken up by Congress until after the midterm elections in November.
However, delaying action until after the midterms, during a lame-duck session, may make it more difficult for the Internal Revenue Service to complete the necessary programming and forms in time for the start of next tax season. It could also complicate tax-planning efforts for CPAs and their clients. The AICPA pointed out that taxpayers and tax practitioners need certainty to perform any long-term tax, cash-flow or financial planning and reporting.
The AICPA said that if Congress does not act soon, it is concerned about a number of consequences, including the impact on a company’s financial accounting and reporting; the increase in complexity and administrative burden for taxpayers and the IRS; the adverse impact on small businesses and, ultimately, jobs and growth; and the effect on economic decisions and tax payments.