AICPA Letter to House and Senate Oversight Subcommittees Urging Revisions to the Newly
July 12, 2007
The Honorable John LewisThe Honorable Kent Conrad
ChairmanChairman
Subcommittee on OversightSubcommittee on Taxation, IRS House Committee on Ways and Means Oversight, and Long-Term Growth
1136 LongworthHouseOfficeBuildingSenate Finance Committee
Washington, DC 20515219 Dirksen Senate Office Building
Washington, DC 20510
The Honorable Jim RamstadThe Honorable Jon Kyl
Ranking MemberRanking Member
Subcommittee on Oversight Subcommittee on Taxation, IRS
House Committee on Ways and MeansOversight, and Long-Term Growth 1136 LongworthHouseOfficeBuilding Senate Finance Committee
Washington, DC 20515219 Dirksen Senate Office Building
Washington, DC 20510
Re: Tax Return Reporting Standards for Preparers
Dear Chairmen and Ranking Members:
In a letter and comments sent Tuesday to the Chairmen and Ranking Members of the House Committee on Ways and Means and the Senate Finance Committee, the American Institute of Certified Public Accountants (“AICPA”) requested a correction to problemscreated by the May 25, 2007 enactment of a tax provision found in section 8246 of the U.S. Troop Readiness, Veteran’s Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007. Specifically, the problems relate to an increase in the tax return reporting standards applicable to tax return preparers.
This change in standards is a major change in tax policy and results in serious implications not only to taxpayers and return preparers, but also to the government.Because of the importance of this issue to the efficient operation of our tax system, the AICPA also requests your consideration of this matter. The AICPA’s letter and comments summarizing the problems and providing a suggested solution are attached for your reference.
The Honorable John Lewis
The Honorable Kent Conrad
The Honorable Jim Ramstad
The Honorable Jon Kyl
July 12, 2007
Page 2
The AICPA is the national, professional association of CPAs, with approximately 330,000 members, including CPAs in business and industry, public practice, government, and education; student affiliates; and international associates. Our members advise clients on federal, state, and international tax matters and prepare income and other tax returns for millions of taxpayers. They provide services to individuals, not-for-profit organizations, small and medium-sized businesses, as well as America’s largest businesses. It is from this broad perspective that we offer our thoughts today.
We would be pleased to discuss this matter with you or others at any time. If you have any questions about this matter, please feel free to contact me at (212) 773-2858 or ; Thomas P. Ochsenschlager, AICPA Vice President - Taxes at (202) 434-9209 or ; or Edward S. Karl, AICPA Director at (202) 434-9228, or .
Sincerely,
Jeffrey R. Hoops
Chair, Tax Executive Committee