Accounting
Senators, AICPA propose fixes to IRS administration
Senate Finance Committee chairman Mike Crapo. R-Idaho, and ranking member Ron Wyden, D-Oregon, issued a
The
“As the tax filing season gets underway, this draft legislation suggests practical ways to improve the taxpayer experience,” Crapo and Wyden said in a joint statement. “These adjustments to the laws governing IRS procedure are designed to facilitate communication between the agency and taxpayers, streamline processes for tax compliance and disputes and ensure taxpayers have access to timely expert assistance.”
The discussion draft includes policies that would:
- Require the IRS to improve “math error” notices so that taxpayers are better positioned to timely respond to them;
- Streamline review of offers-in-compromise to facilitate the taxpayers’ resolution of tax debts;
- Simplify foreign bank account report (FBAR) compliance so that fewer taxpayers will fail to file key forms;
- Clarify and expand Tax Court jurisdiction so that more taxpayers can pursue their claims in an appropriate venue;
- Expand the independence of the National Taxpayer Advocate (NTA) from the IRS;
- Increase civil and criminal penalties on tax professionals that deliberately take actions to harm their clients;
- Expand taxpayer access to the IRS Independent Office of Appeals;
- Extend the so-called “mailbox rule” to electronic submissions so that taxpayers have certainty their materials are submitted on time;
- Protect taxpayers by adopting reasonable standards and due process for issuing and revoking return Preparer Tax Identification Numbers, or PTINs;
- Strengthen the IRS whistleblower program while protecting the confidentiality of taxpayer information;
- Protect hostages from unfair tax processes and penalties.
The proposals in the discussion draft reflect in many ways nonpartisan legislative proposals recommended by the National Taxpayer Advocate, along with standalone tax administrative bills introduced by congressional members. The provisions aim to reduce or eliminate challenges faced by taxpayers and other stakeholders within the current federal tax administrative system.
“This bipartisan draft bill, several years in the making, would significantly strengthen taxpayer rights in nearly every facet of tax administration,” said National Taxpayer Advocate Erin Collins in a statement. “I encourage taxpayers and the tax professional community to carefully review the draft and provide feedback to refine it, and I encourage Congress to prioritize the passage of this common sense bill to ensure stronger protections for taxpayers and a more fair and transparent tax system.”
The AICPA expressed its support Thursday for the discussion draft, and said it strongly supports and endorses the following provisions found in the Taxpayer Assistance and Service Act:
- Sec. 101. Scanning and Digitization of Tax Returns and Correspondence.
- Sec. 102. Establishment of Dashboard to Inform Taxpayers of Backlogs and Wait Times.
- Sec. 103. Expansion of Electronic Access to Information about Refunds.
- Sec. 104. Expansion of Callback Technology and Online Accounts.
- Sec. 105. Improvement of Notices of Math or Clerical Error.
- Sec. 108. Individuals Facing Economic Hardships Informed of Collection Alternatives.
- Sec. 112. Postponement of Certain Deadlines by Reason of Disasters Made Applicable to Limitation on Credit or Refund.
- Sec. 116. Modification of Rules for Postponing Certain Deadlines by Reason of Disaster.
- Sec. 405. Operations to Assist Taxpayers Experiencing Hardships During a Lapse in Appropriation.
- Sec. 504. Authority to Deny, Revoke, or Suspend Preparer Tax Identification Numbers.
- Sec. 903. Quarterly Installments for Estimated Income Tax Payments by Individuals.
- Sec. 904. Establishment of a Failure-to-Pay Penalty Safe Harbor for Individuals.
- Sec. 905. Extension of Mailbox Rule to Electronic Submissions and Payments.
“We are grateful to Senators Wyden and Crapo for putting together a thoughtful package that will provide much-needed support to taxpayers,” said Melanie Lauridsen, vice president of tax policy and advocacy for the AICPA, in a statement. “When passed, the TAS Act will be one of the most significant tax packages we will have seen in recent years. It will be instrumental in establishing a foundation that helps simplify some of the laborious tax filing processes and allows taxpayers to better meet their tax obligations. We look forward to working with Senators Wyden and Crapo as this discussion draft moves forward.”
The Government Accountability Office released a
Aprio, a Top 25 Firm based in Atlanta, has acquired JMS Advisory Group, a firm that specializes in unclaimed property compliance and escheat process development, also based in Atlanta
Financial terms of the deal were not disclosed. Aprio ranked No. 24 on Accounting Today’s just released
JMS was founded in 2006 and helps clients mitigate risk and capitalize on opportunities through managed unclaimed property compliance. The team includes attorneys, CPAs, CFEs and others.
JMS has a wide range of clients, including enterprise companies, financial institutions, credit unions, insurance companies, hospitality and health care organizations.
“As Aprio continues its rapid growth, we are committed to expanding our services to meet the evolving needs of our clients,” said Aprio CEO Richard Kopelman in a statement Tuesday. “The addition of JMS gives us the opportunity to continue strengthening our position as a future-focused advisory firm. JMS’s focus on escheat management and asset recovery not only enhances our current capabilities but also allows us to deliver even more impactful solutions to help businesses navigate complex compliance challenges.”
JMS president and CEO James Santivanez is joining Aprio as a partner and provides guidance to clients on unclaimed property and state and local tax issues.
“We created JMS to make an impact nationally in the unclaimed property consulting industry, and I’m proud of our nearly 20-year history of helping clients mitigate risk and capitalize on opportunities resulting from accurate and properly managed unclaimed property compliance,” Santivanez said in a statement. “Joining with Aprio takes us to the next level, allowing us to build upon our success while providing even greater value to our clients. This is an exciting next step in our journey.”
JMS founder and director Sherridan Santivanez is also joining Aprio as a partner. He specializes in representing clients before state enforcement authorities and managing complex audits and voluntary disclosures for some of the world’s largest companies. She provides strategic guidance on audit preparation and navigates interactions with state and third-party auditors.
Aprio received a
The American Institute of CPAs and the National Association of State Boards of Accountancy are asking for comments on their proposal for an additional pathway to CPA licensure through
The AICPA and NASBA proposed the
The UAA changes would:
- Enable states to adopt a third licensure pathway that requires earning a baccalaureate degree with an accounting concentration, completing two years of professional experience as defined by Board rule, and passing the Uniform CPA Examination;
- Shift to an “individual-based” mobility model, which allows CPAs to practice in other states with just one license; and
- Add safe harbor language to ensure CPAs who meet existing licensure requirements preserve practice privileges.
The proposals come as several states are already moving forward with their own changes, including
The updates reflect feedback gathered during a late 2024 exposure draft period and forward-looking solutions being advanced by state CPA societies and boards of accountancy to increase flexibility for licensure candidates while maintaining the integrity of the CPA license.
The AICPA and NASBA are asking for comments on the proposed changes by May 3, 2025. They can be submitted through this
The UAA offers state legislatures and boards of accountancy a national model they can adopt in full or in part to meet the licensure needs of each jurisdiction.
The proposal would maintain the current two pathways to CPA licensure:
- Earning a post baccalaureate degree with an accounting concentration, completing one year of professional experience as defined by Board rule, and passing the CPA exam; and,
- Earning a baccalaureate degree with an accounting concentration, plus an additional 30 semester credit hours , completing one year of professional experience as defined by Board rule, and passing the CPA exam.
Small business employment held steady last month, according to payroll company Paychex, while wage growth continued below 3%
The
“Our employment data continues to show moderate job growth and wage growth below three percent,” said Paychex president and CEO John Gibson in a statement Tuesday. “The consistent long-term trend we’re seeing is a small business labor market that is resilient and stable with little job movement among workers. At the same time, small business owners are optimistic about future business conditions despite uncertainty about how to adapt to a rapidly evolving legislative and regulatory landscape.”
The Midwest remained the top region in the country for the ninth consecutive month with a jobs index level of 100.54. Seven of the 20 states analyzed gained more than one percentage point in February, led by Texas (up 2.11 percentage points).
Phoenix (101.92) increased its rate of small business job growth for the fourth month in a row in February to rank first among the largest U.S. metros.
Construction (3.29%) regained its top spot among industries in terms of hourly earnings growth in February, followed closely by “other services” (3.27%) and manufacturing (3.21%).
The pace of job growth in manufacturing gained 2.39 percentage points to 99.52 in February, the industry’s biggest one-month increase since April 2021.
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