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AICPA’s Support for Bipartisan Tax Reform Bills

Overview of Legislative Support

The American Institute of CPAs (AICPA) has publicly expressed its strong support for a set of four important bipartisan bills aimed at enhancing transparency and fairness for taxpayers across the United States. These legislative initiatives, which focus on improving the taxpayer experience, were recently highlighted in discussions within the Senate, underlining their significance in the current political climate.

Key Features of the Proposed Bills

Electronic Filing and Payment Fairness Act

One of the landmark pieces of legislation advocated by the AICPA is the Electronic Filing and Payment Fairness Act. This bill introduces the “mailbox rule” to electronic tax submissions. If passed, it would allow the Internal Revenue Service (IRS) to officially acknowledge electronic payments and documents on their submission date, rather than waiting until they are physically received or reviewed. This reform is anticipated to simplify the submission process significantly, offering valuable protections to taxpayers against the risk of penalties arising from delays.

In a detailed letter addressed to the House of Representatives, the AICPA emphasized that adopting this change would represent a substantial improvement in operational efficiency, ultimately benefiting taxpayers by providing them with greater predictability and ease when submitting their tax-related information.

Filing Relief for Natural Disasters Act (FRNDA)

Another key component of AICPA’s legislative support is the Filing Relief for Natural Disasters Act (FRNDA). This proposed bill seeks to streamline the provision of tax relief in the aftermath of natural disasters. Under current regulations, tax relief efforts from the IRS are contingent upon federal disaster declarations, which can be delayed, prolonging the distress experienced by affected taxpayers.

With the introduction of FRNDA, the IRS would be empowered to offer tax relief immediately upon state-level disaster declarations. Additionally, this legislation proposes to extend the mandatory federal filing extension from the current 60 days to 120 days, allowing more breathing room for taxpayers to file their returns after a disaster strikes.

Disaster-Related Extension of Deadlines Act (DREDA)

The Disaster-Related Extension of Deadlines Act (DREDA) is another critical bill aimed at ensuring equitable treatment of disaster victims regarding their tax refunds and credits. This proposed legislation advocates for an extension of the filing period that corresponds with the length of disaster relief postponements. The goal is to ensure that affected taxpayers are afforded the same opportunities and considerations as those who remain unaffected, thereby promoting fairness in tax treatment across all demographics.

AICPA’s Stance on Taxpayer Experience

Melanie Lauridsen, the vice president of AICPA Tax Policy & Advocacy, stated, “The AICPA has long endorsed these legislative proposals and remains committed to advancing comprehensive legislation designed to enhance IRS operations and improve taxpayer experiences.” Lauridsen further expressed satisfaction in collaborating with congressional representatives to spearhead these common-sense reforms. The AICPA is hopeful that these bills will progress through the House and lead to substantial improvements in the taxpayer experience.

Clarifications in Financial Statement Preparation Standards

In addition to its advocacy for tax reform, the AICPA’s Accounting and Review Services Committee (ARSC) issued a significant clarification earlier in April 2025. This clarification pertains to the standards for financial statement preparation within client advisory services (CAS) engagements. Specifically, it relates to the Statement on Standards for Accounting and Review Services (SSARS) No. 27, which delineates the applicability of AR-C Section 70 to financial statements prepared as part of consulting services. This guidance is vital for accounting professionals as it clarifies expectations and responsibilities during CAS engagements.

Utilizing AI legalese decoder for Clarity

In situations where taxpayers find themselves navigating complex legislative changes or new compliance requirements, tools like the AI legalese decoder can be immensely helpful. This AI-powered platform can break down complicated legal jargon into easily understandable terms, making it simpler for taxpayers and professionals alike to grasp the implications of these new bills. By providing clear interpretations and guidance, the AI legalese decoder can assist individuals in making informed decisions related to their tax filings and compliance, thereby enhancing their overall experience and understanding of the evolving tax landscape.

Conclusion

In summary, the AICPA’s ongoing support for these transformative bipartisan bills signifies a major step forward in enhancing transparency and equity for taxpayers. With critical changes proposed in the electronic filing process, disaster-related relief measures, and equitable treatment for affected taxpayers, these efforts represent a proactive approach to improving the tax experience. Furthermore, resources like the AI legalese decoder can empower individuals to navigate this complex terrain effectively, ensuring that they make informed decisions in response to these imminent legislative changes.

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